The new Mexican energy law implicitly allows such ‘communalizing’ of grid connection which delivers economy-of-scale, evens out individual grid connection costs and relieves mill owners from significant, and in their view risky and unfamiliar, capital investment in grid connection in addition to substantial capital requirement for co-generation facilities.
Financial leveraging and mitigation potential: In supporting the GOF establishment the NSP aims to overcome several major financial barriers, facilitates initial private investment of USD 740 million which reduce up to 710.000 t CO2e annually. The NAMA is embedded in Mexico's national development, climate change, rural development and energy policies. It is established as an action line in Mexico's Special Program for Climate Change for its GHG mitigation potential and potential reduction of black carbon emissions, which are to be halved by 2030 according to Mexico's NDC.