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Rodríguez Aguilar, Román
Liberalization of the Mexican Electricity Sector: A Study of Technical Efficiency
2019
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Rodríguez Aguilar, Román
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Marmolejo Saucedo, José Antonio
This article discusses the recent reform implemented in the Mexican electricity sector. As part of the structural reforms carried out in Mexico during the last 6 years (2012–2018), the opening of this sector to foreign capital, the creation of a wholesale electricity market, and the end of the monopoly of a CFE (Federal Electricity Commission, a government company) are the main changes. This study addresses an estimation of technical efficiency of power thermal units within the framework of the liberalization of the Mexican electricity market. These estimations are relevant because a single supplier, even before liberalization, must form a portfolio of the most efficient plants to be able to compete in the electricity market. The main results show the composition of a set of power thermal plants that are the most efficient of the total number of plants in operation and that could represent CFE in the wholesale electricity market. © Springer Nature Switzerland AG 2019.