La tarifa de generación en México estimada con el mecanismo de orden de mérito

In this paper, we analyze de market for electricity generation in Mexico through the merit order model. Using data for capacity, load factors, and expected demand for 2004; we carry out a simulation to find the lowest generation cost for the Mexican Electricity System. We find that steam plants determine the cost for the lowest consumption months. For the highest consumption months, turbogas plants determine the cost for the peak period. Carbon, dual, geothermic and hydro plants, the ones with the lowest cost, are dispatched 24 hours a day throughout the year. Our results show that the simulated results coincide with the actual demand for 2004. So, we conclude that the Mexican Electricity System is following the merit order model. Finally, we find that during some hours in the highest consumption month, the reserve margin was only 1%, having an unreliable system.