On December 24, 2015, the new Energy Transition Law (the "Law") was published in the Federal Official Gazette, becoming effective on December 25, 2015.
This Law abrogates the Law for the use of Renewable Energies and for the Financing of Energy Transition, as well as the Law for the Sustainable Use of Energy, which since 2008 were the main regulatory instruments for renewable energy sources and sustainable energy in Mexico.
The main purpose of the Law is to regulate the sustainable use of energy, as well as the obligations regarding clean energies and reduction of pollutants by the Mexican power industry, complementing the provisions of the Power Industry Law and its Regulations that are in force since 2014.
The Law also makes reference to the promotion of clean energy mechanisms, actions to reduce the generation of pollutant emissions and the creation of programs for the energy transition and the sustainable use of energy.
The Ministry of Energy ("SENER"), the Ministry of Environment and Natural Resources, the Energy Regulatory Commission and the National Commission for the Efficient Use of Energy will be the authorities in charge of applying the Law.
As a result of this Law, SENER will establish goals for the generation of power using clean energies:
25% by 2018; 30% by 2021; and 35% by 2024. Another important aspect is the conversion of the current Institute of Power...