(From: Smart Grids Flanders)

With regard to Mexico’s energy sector, the incorporation of a smart grid into its current electric system is of extreme importance and it is for this reason that the agreement signed this week between the CRE (Energy Regulating Commission) and the USTDA (U.S. Trade and Development Agency) is of such transcendental importance.

On Tuesday, June 26th, the USTDA awarded a $405,000 grant to the CRE to support the development of a regulatory framework for smart grid implementation in Mexico. The grant was signed at the U.S. Embassy in Mexico City by CRE Chairman, Francisco Xavier Salazar Diez de Sollano, and USTDA Country Manager, Keith Eischeid.

The ‘smart grid’ technology refers to electricity delivery systems that function with computers and technology in order to gather information on the behavior of electricity suppliers and consumers in order to improve efficiency, reliability and sustainability of the production and distribution of electricity. Several countries throughout the world are investing time and resources in the development of smart grids and incorporating them into their electricity networks, from power plants and wind farms all the way to the electricity consumers in homes and businesses.

Smart grid systems are especially beneficial for providing improvements in energy efficiency and these systems usually include wires, substations, transformers, and all of the necessary components in electricity provision.

In Mexico, the first steps towards the possible implementation of smart grids took place in 2010 when talk began to spur between the CFE and other government agencies. However, no real advancement had been made until this week.

With the support of the United States, Mexico can now work towards the implementation of a smart grid that will facilitate the integration of renewable energy projects and greatly reduce the country’s current electric waste.

During the signing of the grant, Anthony Wayne, the U.S. Ambassador to Mexico expressed his profound agreement with creating an international energy cooperation strategy:

“This is a perfect example of how our two governments are working together to invest in a 21st century clean energy economy. Our commitment to smart grid technology, which supports the Administration’s Energy and Climate Partnership of the Americas and the U.S.-Mexico Bilateral Framework on Clean Energy and Climate Change, will also create opportunities to develop a highly innovative sector of the economy on both sides of the border.”

According to a report published by El Financiero, the CRE identified ESTA International as the contractor for technical assistance on the U.S. side.

For Mexico, this event represents a huge step towards a stable and sustainable energy future. While the General Law on Climate Change represents the country’s commitment to renewable energy, this event shows how Mexico is read to invest time and resources in improving electricity stability as well as in the integration of renewable energy resources.

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