The Mexican national electricity transmission and distribution grid (SEN, initials in Spanish) is characterized by the high interconnection between its several electricity generation plants and the millions of final consumers throughout the country. This feature, which is seen first as an adequate transmission and distribution method for electricity between producer and consumer, has the inconvenience of being highly complex when renewable energy is introduced into the SEN. The random nature of renewable energy means that coordination between the producer and consumer is difficult; therefore, these energy sources are considered by the Mexican Federal Commission of Electricity (CFE, initials in Spanish) without priority in their generation and distribution. In this document, a solution for this is given by the consideration of on-site photovoltaic production in the Mexican residential sector, setting a straightforward relationship between production and consumption, neglecting the long-distance transmission, and freeing the transmission and distribution through the SEN at certain hours of the day. Different scenarios are studied, considering the level of penetration of this renewable energy technology into the housing sector. In this way, it is found that, if 80% of the total Mexican dwellings hold a photovoltaic roof, in some seasons of the year, a large part the total national demand can be fulfilled by the photovoltaic generation if certain systems—such as bidirectional smart meters—are applied. In this sense, the results show that, if 80% of the Mexican dwellings had a photovoltaic roof, there would be a money saving of 3418 Million USD and a mitigation of 25 million tons CO2e, for 2018. With this, it is concluded that renewable energy in Mexico could provide a much greater share if the electricity is produced in the same place where it will be consumed. This might be possible in Mexico due to the high interconnection of the transmission and distribution grid, which would manage the surplus electricity generation in the dwellings in a proper manner.
The Hybrid Transmission Grid Architecture: Benefits in Nodal Pricing