Efficient Cogeneration Design Applying New Rules in Mexico

At the end of 2011, the Mexican Regulatory Energy Commission (CRE) has issued new rules to comply as efficient cogeneration plant. At this moment, there are some cogeneration plants under construction trying to accomplish these rules consisting in minimal design and operation parameters to overcome the current public power system efficiency. These rules can also be applied to those cogeneration plants currently operating. The approved efficient cogeneration plant can be considered as green energy in order to receive incentives to improve economic behavior of these kinds of plants. Basically, the wheeling cost is reduced compared to conventional power plants, the energy bank may be applied to swap energy and match production with demand. Also, interconnection services with public utility are offered cheaper. From the point of view of taxes the efficient cogeneration plant may be depreciated 100% the first year. However these incentives are not clear for the energy reform just signed by the Congress. This paper explains how these new rules from 2013 were applied in the design and construction of a new cogeneration plant.