CRE Publishes in CONAMER a Preliminary Project on Electromobility

Mexico's Energy Regulatory Commission (Comisión Reguladora de Energía or CRE) on Feb. 14, 2024, published on the web portal of the National Commission for Regulatory Improvement (Comisión Nacional de Mejora Regulatoria or CONAMER), the preliminary project of the "Agreement by Which the Energy Regulatory Commission Issues the General Administrative Provisions on Electromobility [Disposiciones Administrativas de Carácter General or DACGs] for the Integration of Charging Infrastructure for Electric Vehicles and Plug-In Hybrid Electric Vehicles to the National Electrical System as Part of an Intelligent Electrical Network"¹ (Preliminary Project or DACGs).

National Context and Reasoning of the CRE

• Increase in Sales of Electric Vehicles: According to the information published by Mexico's National Institute of Statistics and Geography, at the end of 2022 sales of Electric Vehicles (EVs) and Plug-In Hybrid Electric Vehicles (PHEVs) increased by 220 percent compared to the previous year's sales. Likewise, sales of these units increased by more than 40 percent by the end of 2023.
• Increase in Requests for Charging Stations: CRE obtained information from CFE Basic Power Services Provider (CFE Suministrador de Servicios Básicos) in order to combine and establish the overview of requests for the installation of charging stations for EVs. From this report it was concluded that the attention of requests increased in 2023 by 53 percent compared to the previous year.
• Absence of Legal Framework: The legal framework of the well-known electromobility is in the process of construction and development in Mexico, which is why certain regulations have been issued that regulate basic or analogous aspects of EVs and/or PHEVs, such as the NOM-001-SEDE-2012, among others, that are insufficient for the efficient development of imminent electromobility in Mexico and in the world.
• CRE Considerations: The CRE considers it necessary to issue general guidelines for the integration of infrastructure and necessary elements in the General Distribution Networks (Redes Generales de Distribución or RGD) and the National Transmission Network (Red Nacional de Trasmisión o RNT) for vehicle charging, in order to preserve the efficiency of Mexico's National Electrical System (Sistema Eléctrico Nacional or SEN), in the transition toward electric mobility.

Aspects of Major Interest

Objective

The main objectives of DACGs are:

• to regulate the orderly connection of charging infrastructure for EVs and PHEVs, safely to the SEN
• to develop a digital platform that can track the evolution of the charging infrastructure in Mexico

Charging Modes

These DACGs foresee the following four modalities of charging/connecting an EV and PHEV to the electrical supply network to supply energy to the vehicles:

Electrical Supply Requests

End users² seeking to install EV and PHEV charging infrastructure must request a new electricity supply service agreement independently of other supply services they receive at that time, if the required request is in:

• the same property
• a property under the Condominium Property regime, which already receives the basic supply service in low or medium voltage

Requirements for the End User

The DACGs establish that suppliers shall require from those requesting the electricity supply and its infrastructure, documentary evidence that:

• The smart chargers for electric vehicles or plug-in hybrid electric vehicles (SCEV), as well as receptacles and connectors, are certified in accordance with the official Mexican standards or current international standards.
• The SCEVs, receptacles and connectors, comply with the cybersecurity technical specifications in accordance with the current network code (or the applicable provision) and with International Standardization Organization (ISO) 15118-2:2019.
• The electrical installation from the SCEV to the connection point with the RGD is carried out by qualified personnel, either by the EC0118 Competence Standard or EC1023 Competence Standard.
• There is a technical sheet stating that SCEVs have advanced communication, control and management functions of electrical energy.
• There is a PHEV charging infrastructure characteristics form.

Finally, if applicable:

• The Favorable Verification Opinion issued by an Electrical Installation Verification Unit that the electrical installation complies with the Official Mexican Standard NOM-001-SEDE-2012.
• The certificate issued by an inspection unit that the infrastructure of the connection point complies with the provisions of the Network Code (or the applicable provision), and with the technical specifications determined by the distributor or the National Center for Energy Control (Centro Nacional de Control de Energía or CENACE).

Electric Tension

End users wishing to connect infrastructure dedicated to EV and PHEV charging shall submit the application taking into consideration the required electric voltage.

• Equal or Greater than 69 kV: they must submit the connection request to CENACE.
• Less than 69 kV: they must submit the connection request to CFE Distribución.

Both applications and procedures must observe the provisions applicable to the voltage level and type of corresponding load center.

Assembly and Signaling

Electric Charging Stations

The charging stations (known as electrolineras) must observe the following points:

• SCEV installed in electric charging stations: They must be of the charging station type, have at least the fast or ultra-fast charging mode that allows EV and PHEV users to charge their vehicles in short times.
• Charging infrastructure: Electro terminals and public charging stations may have any of the charging modes (1 to 4).
• Public information on display: Electro stations, electro terminals and public charging stations must have information on each SCEV visible regarding: 1) types of compatible connectors, 2) type of charger, 3) charging mode, 4) indications for use, 5) estimated charging time, 6) price and labeling, among others.
• Compatibility: The electrolineras must have charging infrastructure compatible with at least two of the types of connectors that are marketed in the national territory and must have SCEV that allow the charging of HCVE and last mile EV.
• Electrolinera owners: End users who own an electric station must comply with the applicable regulations and provisions regarding urban development and territorial planning and others that may be required for their activity.
• Sale of energy in electric stations: End users who carry out the activity of selling energy at electric stations must comply with the provisions of Agreement No. A/039/2018, submit their energy sale notice within six months after receiving the electricity supply service (with corresponding information from A/039/2018).

Battery Exchange Stations

These battery exchange stations must comply with the specifications established in the applicable NOMs, as well as the end users of exchange stations must observe the provisions of the General Law for the Prevention and Comprehensive Management of Waste and the applicable NOMs.

Charging Infrastructure Monitoring

End users who contract the electricity supply service dedicated to the EV and PHEV charging infrastructure must submit the form contained in the DACGs.

The end users who own an electrolinera must present and update Appendix 2 of these provisions to the CRE, preferably through the electromobility platform that the CRE develops and operates for this purpose (as long as the portal is not enabled, it must be presented by email, Parts Official or Electronic Parts Official).

The basic services supplier and the qualified service suppliers must present quarterly reports to the CRE and CENACE regarding the number of requests for the electricity supply service dedicated to the charging of EVs and PHEVs requested and served, information for which the CRE will issue statistics semiannually.

The CRE, through the electromobility platform, will publish information related to the electrolines, such as: 1) georeferences of the electrolines and 2) characteristics of the charging infrastructure.

Surveillance

The CRE will be the body empowered to:

• make information requests to end users when considered necessary to review and/or verify the installation conditions of the electrolineras or electroterminals
• schedule and carry out verification visits to supervise compliance with the network code and DACGs and other applicable regulations
• carry out verification visits to the suppliers and the distributor

Main Obligations

Regulatory Considerations

The applicability and observance of the content of the DACGs will be exclusively for requests for the electricity supply service and connection of load centers that are entered from the entry into force of the DACGs (the day following its publication in the Official Gazette of the Federation).

The CRE may issue general administrative provisions that promote the efficient development of electric charging stations, and to date there is no preliminary project information. Also, the CRE itself may request information and carry out inspection visits to the subjects bound by the DACGs in order to verify compliance with their obligations in accordance with their activities.

The owners of EVs and PHEVs will undoubtedly see the benefits of the use of this vehicle type enhanced due to the regulation in favor of the development of infrastructure for efficient charging of their vehicles, as well as the competition among suppliers that these DACGs project.

PHEV charging points, which are the incentive for the use of these vehicles , are not only represented by lower maintenance costs, environmental benefits, energy efficiency, procedures and taxes for their owners, but also for highly competitive efficiency compared to internal combustion vehicles.

Means of Defense

These General Administrative Provisions, as an administrative act of the CRE, may be challenged through:

• Contentious Administrative Procedure (Tesis 2a./J. 43/2020)
• Amparo Trial (Article 27 Law of Coordinated Regulatory Agencies in Energy Matters)

Regulatory Improvement Procedure

Upon publication on the CONAMER portal, the preliminary project will be submitted to public consultation, through which interested parties can make comments and considerations, which would be evaluated by the authority at the time of issuing their opinions. For this purpose, minimum public consultation periods will be established that may not be fewer than 20 days.

Holland & Knight's team can assist you in analyzing the preliminary project and its specific impacts, and structure comments and considerations regarding the content of the preliminary project to be submitted to CONAMER.

Notes

¹ CONAMER Portals Summary

² According to Chapter 3, section 3.38 of the DACG, the end user is defined as the "Physical or legal person who acquires, for their own consumption or for consumption within their facilities, the Electrical Supply in their Load Centers, as a Market Participant or through a Supplier."

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