In a multi-author book that addresses perspectives for Mexico in relation to energy challenges and the transition to a low-carbon economy, Alejandro Ibarra Yúnez analyzes the growing use of non-conventional renewable energy (NCRE), among other topics.

By JOSÉ ÁNGEL DE LA PAZ | EGADE BUSINESS SCHOOL

Alejandro Ibarra Yúnez, emeritus professor of EGADE Business School - Tecnológico de Monterrey, shares his vision of the energy economy and the growing use of non-conventional renewable energy in the multi-author book Energy Issues and Transition to a Low Carbon Economy. Insights from Mexico, published by Springer.

Edited by Tec de Monterrey Professors Francisco Lozano, Arturo Molina and Alberto Mendoza, the work brings together contributions from various areas of knowledge in a scientific response to the challenge of integrating energy sources and technologies that contribute to the urgent objective of developing sustainable economies with a low carbon footprint.

Ibarra Yúnez collaborates with other authors in the book’s initial chapter: "Historical Context and Present Energy Use in the Global Economy" and contributes with two other chapters entirely of his authorship: "Energy Market Evolution in Lieu of Fossil Fuels Use and Renewables Penetration Due to Regulatory Changes" and "Market Restructuring Due to Renewable Sources Evolution and Penetration."

In one of his chapters, the professor analyzes the dynamics of the development of an energy market with regulators that promote the participation of many companies, load centers and users, and at the same time assure energy supply for basic services, in reference to two markets close to Mexico: the California Independent System Operator (CAISO) and the Electric Reliability Council of Texas (ERCOT) in the United States.

“(The chapter) shows how regulations are adapting to the dynamics of these markets, taking into account all participants, and reflects on the possible ambivalence between energy policies and environmental-protection policies, and how to establish bridges between the two regulatory branches,” he explained.

In his other chapter, Ibarra Yúnez generates a flexible reference framework, emphasizing that markets must make a clear separation between the parts of the market that are natural monopolies, such as electricity transmission, and the competitive parts, such as electricity generation, part of distribution and marketing, with growing renewable sources and aggregators in the market.

Similarly, it highlights the crucial role of the wholesale market for electrical energy products, such as large-scale generation, significant demand or load centers, and the importance that said market, in the case of Mexico the National Energy Control Center (CENACE), contain other marketable products in bilateral contracts, but increasingly in the wholesale market.

"These products are power hubs, short and medium-term markets, Clean Energy Certificates (CECs) and Financial Transmission Rights (FTRs), as well as traders or aggregators," he commented.

The book is available here.