A Brief Overview of Mexico’s Energy Transition Act

12/28/2015

On December 24, 2015 Mexico’s Energy Transition Act was published in the Federal Gazette.1 The Act’s purpose is to regulate:

  • The sustainable use of energy,
  • The obligations of power companies in the area of clean energies, and
  • The reductions of the polluting emissions of the electric power industry, ensuring the competitiveness of the productive sectors.2 

The Act became effective the day after its publishing in the Federal Gazette.3

The Act abrogates the Law for the Use of Renewable Energies and the Financing of the Energy Transition, the Law for the Sustainable Use of Energy and any other legal provision opposing this new Act.4

The Act provides for the creation of a strategy that will establish goals with the purpose of satisfying the consumption of electric power by means of establishing a portfolio of alternatives that includes energy efficiency and a growing proportion of clean energies, in economic viability conditions.

Through the goals of clean energies and goals of energy efficiency, the Secretariat of Energy (SENER) shall promote that the generation of electric power deriving from clean energy sources reaches the levels set forth in the Climate Change Act for the electric power industry.5 This strategy will establish policies and measures to encourage the use of renewable resources for energy and the substitution of fossil fuels as a source for the generation of electric power.6

SENER shall set as a goal a minimum participation of clean energies for the generation of electric power of 25 percent for 2018, 30 percent for 2021 and 35 percent for 20247  and, it shall be responsible for establishing the obligations for the acquisition of clean energy certificates that the suppliers, qualified users participating in the wholesale power market and the holders of interconnection agreements must comply with on an annual basis.8

Generators that produce electric power with fossil energies will undertake to gradually substitute its generation facilities that exceed the limits set forth in the standards issued by the Secretariat of the Environment and Natural Resources (SEMARNAT), for generation facilities that comply with the corresponding provisions in the area of polluting emissions.9

This Act requires the enactment of various regulations that must be published in the Federal Gazette during 2016.

Mexico shall promote the existence of legal, regulatory and tax conditions to facilitate the compliance of the goals and the corresponding legal provisions for all of the participants in the electric power industry.

This Act requires the enactment of various regulations that must be published in the Federal Gazette during 2016.10

Mexico shall promote the existence of legal, regulatory and tax conditions to facilitate the compliance of the goals and the corresponding legal provisions for all of the participants in the electric power industry.11

For more information, please contact any of the lawyers shown below.

Mexico

Houston

Dallas

William (Hunt) Buckley
+52.55.5249.1812
hunt.buckley@haynesboone.com

Ricardo Garcia-Moreno
+1 713.547.2208
ricardo.garcia-moreno@haynesboone.com

Terry W. Conner
+1 214.651.5604
terry.conner@haynesboone.com

Luis F. Moreno Trevino
+52.55.5249.1821
luis.moreno@haynesboone.com

George Y. Gonzalez
+1 713.547.2011
george.gonzalez@haynesboone.com

Alberto de la Peña
+1 214.651.5618
alberto.delapena@haynesboone.com

Ariel Ramos
+52.55.5249.1820
ariel.ramos@haynesboone.com

Bradley J. Richards
+1 713.547.2028
brad.richards@haynesboone.com

Hector Herrera
+52.55.5249.1846
hector.herrera@haynesboone.com

Eduardo Corzo Ramos
+52.55.5249.1817
eduardo.corzo@haynesboone.com

   

Thomas E. Heather
+52.55.5249.1855
thomas.heather@haynesboone.com

   

____________________
1 Executive Order that enacts the Energy Transition Act, published in the Federal Gazette of December 24, 2015.
2 Ibidem Article 1.
3 Ibidem Transitory Article First.
4 Ibidem Transitory Article Second.
5 Ibidem Article 4.
6 Ibidem Article 5.
7 Ibidem Transitory Article Third.
8 Ibidem Article 7 paragraph I.
9 Ibidem Article 7 paragraph III.

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