Wind on the grid instead of fossil fuels – electricity from Oaxaca
Oaxaca III Wind Energy Project, Mexico
The Oaxaca III project is located in the wind-rich Isthmus of Tehuantepec region in the State of Oaxaca, Mexico. It is a grid-connected wind farm with an installed capacity of 102 MW (68 wind turbines with a capacity of 1.5 MW each). The electricity generated is fed into the Mexican national grid and sold to the state-owned utility Comisión Federal de Electricidad (CFE).
By feeding wind-generated electricity into the grid, electricity from the existing — predominantly fossil-based — power mix can be displaced on a calculated basis.
This is where the climate impact occurs: within the power system itself. The volumes of electricity generated and supplied to the grid are measurably documented, allowing the resulting avoided emissions to be transparently and reliably quantified (methodology ACM0002).
A project that demonstrates how wind energy can make a lasting contribution to a more climate-friendly electricity supply — as operating infrastructure, with a clear displacement logic and measurable impact through grid feed-in.
Technical project data – VCS1042
Key facts about the wind power project at a glance
| Parameter | Description | Source |
|---|---|---|
| Project location | Mexico; State of Oaxaca; Isthmus of Tehuantepec region (Municipality of Juchitán de Zaragoza; coordinates specified). | MR, Section 1.7, p. 5; PD, Section 1.9, p. 6 |
| Project type | Grid-connected onshore wind power project (Sectoral Scope 01 – Energy Industries). | MR, Section 1.2, p. 3; PD, Section 1.2, p. 4 |
| Project standard | Verified Carbon Standard (VCS) administered by Verra (VCS Version 4.0). | MR, title page; Verification Report, header |
| Additional standard | No additional standard specified in the available project documentation. | Project documents (MR / Verification Report) |
| Project developer | Project Proponent: CE Oaxaca Tres S. de R.L. de C.V.; Project Representative: Kosher Climate India Pvt. Ltd.; electricity sold to Comisión Federal de Electricidad (CFE). | PD, Section 1.3, p. 4; MR, Sections 1.3–1.4, p. 4 |
| Technology / approach | Operation of a wind farm with 68 wind turbines (1.5 MW each; total installed capacity 102 MW); grid feed-in via connection to the National Interconnected Grid (incl. Ixtepec substation; 230 kV; approx. 23.2 km transmission line). | MR, Section 3.1, p. 8; Verification Report, Section 1.4, p. 7 |
| Baseline scenario | Without the project, the equivalent electricity would be supplied by the Mexican interconnected grid (described in the MR as predominantly fossil-based). | MR, Section 1.1, p. 3 |
| Methodology | ACM0002 – Grid-connected electricity generation from renewable sources, Version 12.1.0. | MR, Section 1.8, p. 5; Verification Report, Section 5, p. 25 |
| Project start date | 02 August 2011 (start of GHG emission reductions and grid feed-in following completion of transmission line works). | MR, Section 1.5, p. 4; Verification Report, Section 1.4, p. 7 |
| Crediting period | 10 years: 02 August 2011 – 01 August 2021; MR further explains a VCS end date in the CDM context of 08 March 2022. | MR, Section 1.6, pp. 4–5 |
| Project status | Project operational; second periodic verification for the monitoring period 01 December 2019 – 30 November 2021; emission reductions confirmed as “fairly stated.” | MR, Section 1.1, p. 3; Verification Report, Section 5, p. 25 |
| Annual emission reductions | For 01 December 2019 – 30 November 2021: total verified emission reductions of 345,162 tCO₂e (breakdown provided in the Verification Report). | Verification Report, Section 5, p. 26 |
| Main impact mechanism | Displacement of emission-intensive grid electricity generation through measured feed-in of wind-generated electricity (fossil-dominated grid mix). | MR, Section 1.1, p. 3 |
| Monitoring & verification | Measurement of electricity generation and grid feed-in; independent verification by accredited VVB, including data checks and evidence cross-validation. | Verification Report, Sections 1.1–1.4, pp. 6–7; Section 4.5, p. 24 |
| Additionality | Additionality addressed in accordance with the applied methodology and tools (referenced in the MR). | MR, Section 1.8, p. 5 |
| Permanence & risk management | No physical permanence risk as in AFOLU projects; relevant risks mainly relate to measurement and data quality and are addressed through the verification process. | Verification Report, Sections 4.5–4.6, p. 24 |
| Carbon credit rating | No external carbon credit rating indicated in the available project documentation. | Project documents (MR / Verification Report) |
| Carbon credit rating type | No project-specific external assessment (e.g. BeZero, Sylvera) indicated in the available documentation. | – |
| Article 6 authorisation (Paris Agreement) | No information provided in the available project documentation. | Project documents (MR / Verification Report) |
| CCP status (ICVCM) | No information provided in the available project documentation. | Project documents (MR / Verification Report) |
| Double counting safeguards | CDM involvement disclosed; for the VCS monitoring period, a declaration is provided stating that no CDM credits or other environmental credits (e.g. RECs) are claimed for the same period. | MR, Sections 1.9–1.10, p. 6 |
| Monitoring approach | Processing of electricity data in line with the monitoring plan (hourly, monthly and annual aggregation); verification through document review and evidence cross-checking. | Verification Report, p. 4; Sections 4.4–4.5, pp. 13–24 |
| Project lifetime / longevity | Expected technical operating lifetime of 20 years; crediting period of 10 years (renewable). | MR, Section 1.6, p. 4; PD, Section 1.6, p. 5 |
| Contribution to national climate strategy | Contribution through expansion of renewable electricity generation and diversification of the energy mix; described in the MR as a benefit, including avoidance of fossil resources and increased diversification. | MR, Section 1.11, pp. 6–7 |
What the project can contribute
Here we summarize what the project is actually intended to achieve and which practical improvements it can enable.
- 1
Expanding renewable electricity in the Mexican grid
Oaxaca III supplies wind-generated electricity to the public interconnected grid. Renewable generation is thus strengthened as a permanent infrastructure component — not as a one-off measure.
- 2
Avoiding emissions in the power sector
The climate impact is achieved through displacement: every kilowatt-hour of wind electricity fed into the grid can, on a calculated basis, replace electricity from the existing grid mix. This avoids emissions that would otherwise occur from conventional power generation.
- 3
Diversifying the power mix and reducing fossil dependency
More wind power means a broader, less fossil-dominated electricity mix. The project supports a gradual transformation of the energy system — without claiming to transform the entire mix on its own.
- 4
Strengthening regional value creation during operation
Operating and maintaining a wind farm requires ongoing technical services, spare parts, maintenance processes and personnel. These create recurring regional effects as part of everyday infrastructure operation, complementing the climate impact.
- 5
Establishing measurable and verifiable impact
Grid feed-in is metered and documented through monitoring. Based on this data, emission reductions are calculated using an approved methodology and independently verified through the standard process — making impact traceable rather than merely claimed.
Global climate relevance
Decarbonising the power sector – a global lever
The project targets one of the largest emission sources worldwide: electricity generation. Every additional kilowatt-hour of wind power supplied to the grid can, on a calculated basis, replace emission-intensive conventional generation — reducing emissions where they systemically arise.
Climate action within the energy system – not at the margins
Wind energy operates at the core of the energy system: grid electricity. This is globally relevant because transforming power supply is a prerequisite for the long-term electrification of other sectors such as mobility, heat and industry.
Impact through continuous operation
A wind farm is infrastructure. Its climate impact does not occur as a one-time effect, but through continuous electricity generation and repeated displacement within the grid — for as long as the wind farm remains in operation.
Enabled through climate finance
The construction and operation of large-scale renewable installations require investment and reliable revenue models. Climate finance via the voluntary carbon market can help secure the economic viability of such projects and thereby support the expansion of renewable electricity generation within the grid.
Sustainable Development Goals (SDGs) – The relevant and the complementary contributions
Beyond reducing greenhouse gas emissions, the Oaxaca III wind power project contributes to strengthening electricity supply and expanding renewable generation within the Mexican grid. By feeding wind-generated electricity into the grid, conventional and emission-intensive power generation can be displaced on a calculated basis — resulting in emission reductions directly within the power sector. As an infrastructure project, the wind farm also generates ongoing regional effects through operation and maintenance activities. In this way, the project supports several objectives of the United Nations Sustainable Development Agenda (SDGs). The most relevant contributions relate to SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). Additional goals are supported indirectly or as secondary effects; some SDGs are considered marginal contributions that are supportive but not embedded in the project’s core design.
The project generates renewable electricity from wind power and feeds it into the Mexican interconnected grid.
This expands domestic electricity generation from renewable sources and supports a broader and cleaner power supply.
Contribution:
Expansion of renewable electricity generation through grid-connected wind power.The climate impact is achieved through displacement within the grid: each kilowatt-hour of wind electricity fed into the grid can, on a calculated basis, replace conventional, emission-intensive power generation.
This avoids greenhouse gas emissions in the power sector.
Contribution:
Reduction of greenhouse gas emissions through renewable grid feed-in and displacement of fossil-based generation.Large-scale wind farms constitute energy infrastructure.
Oaxaca III contributes to integrating renewable generation as a standard component of the electricity system and thereby supports long-term modernisation of power infrastructure.
Contribution:
Strengthening renewable energy infrastructure and supporting grid integration.The operation, maintenance and servicing of a wind farm require ongoing technical services and operational personnel.
These create recurring regional effects during operation, complementing the project’s climate impact.
Contribution:
Supporting employment effects through operation and technical maintenance processes.Wind-generated electricity is produced without fuel input and without combustion processes.
This represents a more resource-efficient form of electricity generation, without directly influencing consumption patterns.
Contribution:
More resource-efficient electricity generation without fuel use (indirect contribution).
How CO₂ Savings Are Generated
Clean electricity from renewable energy projects replaces fossil-based power. The emissions avoided through this shift can be measured and form the basis for issuing carbon credits.
Renewable power changes the overall energy mix: every kilowatt hour produced by wind, solar or hydropower reduces the need for electricity from coal, gas or oil.
The amount of CO₂ emitted per kilowatt hour varies by country and by fuel type. These official grid emission factors make it possible to calculate how much CO₂ would have been released without the renewable energy project.
For each project, the expected fossil share is compared with the clean electricity actually delivered. The difference shows the verified emission reductions — the real CO₂ savings. These values are reviewed by independent auditors, updated regularly, and form the certified basis for carbon credits.
Context and Transparency
This wind power project is registered under the Verra Verified Carbon Standard (VCS) and is subject to regular monitoring and independent verification in accordance with the standard. The reported emission reductions are based on verified monitoring reports and the recognised ACM0002 methodology, which quantifies emissions avoided through grid-connected wind electricity compared to conventional power generation in the Mexican electricity system.
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