Electric power comes from various sources, a classification given in Mexico is according to the type of technology that produces electrical energy. The classification is shown below:

Conventional technology

A group of conventional technologies is integrated by the units and plants that generate electricity via the use of fossil fuels as primary energy and do not account for CO2 capture and confinement equipment:

Some of the technologies in this group include: coal, combined cycle, internal combustion, fluidised bed combustion, conventional thermoelectric, and Turbogas.

Clean technologies

The technologies considered clean correspond to plants whose source of energy and electrical generation processes produce emissions or waste in quantities lower than the thresholds established in the various applicable provisions.
In order for a power source or power generation process to be considered as Clean Energy, its CO2 emissions must be less than 100 kilogrammes per MWh generated, as long as the provisions that determine the maximum emission or waste thresholds are not issued or applicable to Clean Energies.
Some of the technologies included in this group are: Hydroelectric, Nuclear, Wind Power, Geothermal, Solar, Solar Thermal, Bioenergy, and Efficient cogeneration.

Solar energy refers to the use of the Sun's radiation by converting it into other types of energy, mainly thermal or electrical energy.

To convert solar radiation into electrical energy, the most common means is through photovoltaic cells (usually made of silicone) that capture solar radiation and convert it into electric current.

It is the use of energy from air currents, this type of energy has been used for various activities for a long time, including: agricultural irrigation, water pumping, to grind grains, and, currently, for the generation of electric power.

The transformation of air currents into electrical energy is done through wind turbines, which convert the kinetic energy of the wind into electrical energy through the movement of blades.

It is the use of water currents to generate electricity. The transformation into electrical energy is done by hydroelectric turbines that rotate thanks to the circulation of water and produce electrical energy.

This type of power generation technology is the oldest and one of the most used generation sources due to its high efficiency and response speed.

The Wholesale Electricity Market (MEM) is a market operated by CENACE in which the Market Participants (PM) may sell and purchase energy, capacity, Clean Energy Certificates (CEL’s), ancillary Services, and any other Associated Products as required for the operation of the National Electric System.

The National Centre for Energy Control (CENACE) is a decentralised public body whose purpose is to operate the Wholesale Electricity Market, exercise the operational control of the National Electric System, guarantee the security of the system, as well as open and not unduly discriminatory access to the National Transmission Grid and the General Distribution Grids.

• Generators

• Qualified Users Market Participants (UCPM)

• Basic Services Providers (SSB)

• Qualified Service Providers (SSC)

• Exempt generators (Represented by SSB or SSC)

• Last Resort Providers

• Non-Supplier Marketers

Exempt generators are small power plants with a potential lower than 0.5 MW, which do not require a permit to generate electricity.

These generators can sell their electricity and Associated Products to a Basic Services supplier, for which the CRE will calculate the applicable considerations. Exempt Generators may also participate in the Wholesale Electricity Market through a Qualified Service supplier.

A Generator is a permit holder that accounts for power plants that generate more than 0.5 MW. The generators participate directly in the Wholesale Electricity Market, where they sell their electricity daily. They can also participate in the long-term auctions (SLP) that are held to ensure supply to the Suppliers and to enter into contracts with Qualified consumers and Qualified Suppliers to sell their electricity and Associated Products.

Represents the Load Centres in the Wholesale Electricity Market that correspond to Qualified consumers that do not participate directly in the Wholesale Electricity Market. Nexus Energía MX is an SSC and, through this permit, can sell electricity to final consumers, as long as they are recognised as Qualified consumers.

They are products linked to the operation and development of the electric industry, necessary for the National Electric System to function efficiently, with quality, continuity, safety, and sustainability. These products include:

• Power

• Clean Energy Certificates (CEL’s)

• Financial Transmission Rights (DFT’s)

• Ancillary Services

• Controllable Demand

All have commercial value and their commercialisation is carried out in the Wholesale Electricity Market, as well as through OTC (Over the Counter) contracts.

A CEL is a title that certifies the production of clean electrical energy. The value of the CEL is for each megawatt-hour of clean energy.

These are contracts between MEM participants for the supply and purchase of Energy, Power, Clean Energy Certificates, or any other Associated Products during a period of time and at an agreed price.