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Minimum Energy Performance Standards

Challenges to investment 

In the 1980’s, Mexico experienced a complex macroeconomic and socio-economic transformation, triggered partially by the 1982 debt crisis and a period of high inflation between 1982 and 1987, jumping from 61.8% annual rate of inflation in 1982 to a record high of 142.8% by 1987. As a response to these challenges, a set of policy reforms were implemented to, not only stabilize the government financial situation, but also integrate Mexico into the world economy. Back then, electricity was perceived as a drain for the government state budget. The introduction of energy efficiency standards was proposed as a solution to respond to energy affordability issues and bolster the country’s energy security. 


Approach 

In 1989, Mexico founded the National Commission on Energy Savings (CONAE) to establish a program of minimum energy performance standards, “Normas Oficiales Mexicanas” (NOMs).

The first four standards, promulgated in 1994, covered three important household appliances—water pumps, gas heaters, and refrigerators—as well as three-phase electric motors, which impacted multiple industries and sub-sectors. This first set of NOMs was based on standards for the same products already implemented in the United States by that time. In fact, the standards intentionally matched both the measurement specifications for rating energy efficiency and level of stringency.

Since then, CONAE’s successor, the National Commission for the Efficient Use of Energy (CONUEE), further expanded the appliance efficiency standards program to 33 NOMs, with specifications and mandatory minimum energy performance levels for each appliance type, equipment, or systems. Some of the categories covered include water pumps, transformers, water heaters, AC, washers, refrigerator, freezers, residential lighting fixtures, road and exterior lighting, construction equipment, stoves, chargers and power supply, audio and video systems, as well as electric engines. 


Key Enabling Conditions 

Strong consumers acceptance and ensuing energy efficiency benefits to communities (lower electricity bills) improved the demand for efficient products.

The ability to comply with requirements of key strategic trade partners in the regions (North America), resulted on additional benefits beyond the initial goal, which enabled a rapid adaptation and steady compliance on MEPS certification and assurance.

Lastly, the evolution of the MEPS standards and update to existing NOMS led CONUEE to play a more important role in the energy transition ecosystem. 


Impact / Outcomes

For Mexico, these policies have had multiple benefits, from energy savings to economic benefits for consumers, increasing access to energy services. They are reported to have had positive fiscal impacts while providing a competitive edge to Mexico’s industrial sector.

When introduced to the Mexican market, standards for refrigerators alone were said to have reduced the energy consumption of the product class by 26%. A study later published by the Government of Mexico found that the first update to the refrigerator and air conditioner standards from the early 2000s saved approximately 6 TWh for the year 2014.

In a period of economic integration among the countries of North America, this alignment in MEPS minimized barriers to the import and export of domestic appliances and industrial equipment. Trade advantages resulted, as seen with the example of refrigerators, which exports from Mexico to the US in the period 2000 – 2014 saw 9-fold increase to about USD 3.7 billion. 


Additional Sources

Locations
Latin America, Mexico
Year published
01 January 1989
Policy type
Energy policy
Policy lever
Power market governance
Risk category
Policy and regulatory risk, Technology risk, Social acceptance, Permits risk