Mexico’s CNE Issues New General Administrative Provisions for Cogeneration Systems

Greenberg Traurig | On April 16, 2026, the National Energy Commission (CNE) published the General Administrative Provisions for electricity generation under the Cogeneration modality (the "Provisions") in the Official Gazette of the Federation. These regulations, which entered into force on April 17, 2026, establish the general conditions, requirements, and procedures for power plants operating through cogeneration. 

Scope and Technology
The Provisions apply to power plants generating electricity under the Self-consumption, Wholesale Electricity Market (WEM), and Distributed Generation modalities. The regulatory framework covers three primary technological configurations: 

• Topping Cycle: Combined generation where primary energy produces electricity first, followed by the use of residual heat in industrial processes. 
• Bottoming Cycle: Electricity production using unused heat from industrial processes. 
• Industrial By-products: Generation utilizing sub-products or residual fuels from industrial processes.

 
General Conditions and Compliance
Generators must adhere to several requirements, including obtaining a generation permit for capacities equal to or exceeding 0.7 MW and accrediting the system configuration before the CNE. Key obligations include: 

• Linking a thermal demand to the permit (via self-consumption users or third parties for the WEM). 
• Submitting an annual thermal demand profile by January 31. 
• Implementing a measurement system at the interconnection point. 
• Registering physical assets and signing market participant contracts for WEM modalities. 

Capacity Determination
The authorized generation capacity must be directly linked to the thermal demand of the associated industrial process. To secure a permit, applicants must provide the CNE with thermal demand values, associated electrical loads, dispatchable energy limits, piping and instrumentation diagrams (P&ID), and energy balance sheets. 

Transitory Provisions
Until specific technical criteria are issued, current regulatory instruments for efficient cogeneration will remain applicable. Transitory rules will also govern market operations and interconnection procedures while corresponding amendments to Market Rules and manuals are finalized.

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