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Center for the U.S. and Mexico

The Effect of Changing Marginal-Cost to Physical-Order Dispatch in the Power Sector

Juan Rosellón

The Effect of Changing Marginal-Cost to Physical-Order Dispatch in the Power Sector.

By Raúl Gutiérrez-Meave, Juan Rosellón and Luis Sarmiento

In this study, the authors explore the 2021 Mexican reform to change electric power dispatch from a marginal-cost-based to a command and control physical system prioritizing power generation from the state power company.

Read the working paper in Resources for the Future.