Integrated analysis of the Mexican electricity sector: Changes during the Covid-19 pandemic

The COVID-19 pandemic has nonlinear impacts. These impacts have collaterally affected systems such as economic and energy. The fragility of these systems has also been shown, including the electric system. In Mexico, the weakness of dependence on US fuels, of the transmission system, and the management reduction of one of the most crucial state companies in Mexico, the Federal Electricity Commission (CFE), was evidenced. The changes during the COVID-19 pandemic were the decrease in electric demand and consumption. This prevented the transmission nodes from saturating, although about 15% of the energy generated was still lost. Private companies, which own most of the intermittent renewable generation, and natural gas have been favored by the changes during the COVID-19 pandemic, generation sources such as wind aand solar have had a noticeable increase, because of the 2013 energy reform that created an electricity market in which private companies and the state company started to compete. On the other hand, during the 2020 winter, natural gas imported mostly from the United States had volatile prices, considerably increasing its cost, and putting the combined cycle generation at risk. This technology represents around 60% of the generation, and its primary owners are private companies. This situation led to great discussions in the current administration, thus originating an electricity reform in which the state company wants to have control again. This paper opens the debate on whether the Mexican electricity system should continue with the same generation pattern or make substantial changes that benefit the country's energy security, distributed generation, and the relationship between the state company and the Mexican electricity system.