Mexico power LMPs up on high end-of-week congestion

HOUSTON (ICIS)–Locational marginal prices (LMPs) for the week to 22 April across the eight SEN grid nodes monitored by ICIS averaged Mexican Pesos (Ps) 1347.03 ($74.43)/MWh, with the energy component recording a mean of Ps1257.84/MWh, analysis of data from power market operator CENACE shows.

LMPs for the whole SEN grid, which includes the La Paz and Mexicali nodes, climbed by 20% week on week but decreased by 27% when compared with the same period of last year. The SIN grid, which excludes the Mexicali and La Paz nodes, tumbled by 44% year on year and jumped by 32% from the prior week.

The Merida node which serves part of the Yucatan peninsula again registered the highest daily average LMP for the SIN grid nodes monitored by ICIS, jumping 65% from the day prior to reach Ps1618.21/MWh on 21 April and then retreating by 6% the following day.

CONGESTION

The Merida node again recorded among the highest congestion costs, peaking at Ps515.88/MWh on 21 April and remaining elevated the following day. Congestion prices were elevated across the mainland SIN grid on 21 and 22 April, with one contributing factor likely being lower wind and solar generation dispatch on those days recorded in CENACE data. CENACE alerts did not record major SIN outages on those days. The Valle de Mexico Norte node recorded the highest congestion cost at Ps535.18/MWh on 21 April.

Average congestion prices for the entire national SEN grid leapt week on week, landing at a mean of Ps69.62/MWh after having averaged -Ps24.74/MWh the prior week. The rise can be attributed mostly to the elevated congestion costs across the grid on 21 and 22 April.

The Laguna node continued to have some of the lowest congestion costs for the week, dipping to -Ps131.75/MWh on 16 April.

SIN GRID, ENERGY COMPONENT

The SIN grid’s average energy component for the week ending 22 April was Ps749.44/MWh, up by 11% from the week prior.

The northeastern Monterrey node took the spot for the node averaging the closest to the SIN grid energy component for the week, meaning that it was producing energy efficiently.

LA PAZ, MEXICALI

La Paz’s energy component for the week climbed by 11% week on week to Ps4790.88/MWh. Mexicali’s energy component for the week increased by 7% from the prior week to Ps775.19/MWh.

Neither node registered any congestion costs for the week.