Mexico’s Energy Transition Act
In sync with tendency and preference that has
been given to the development of renewable energy
in more developed countries, the Mexican
Congress passes on late December 2015th a new
Energy Transition Act which purpose is to regulate
the sustainable use of energy and the obligations of
the electricity industry in matters of clean energy
and the reduction of emissions, maintaining the
competitiveness of the productive sectors.
Location is essential for
projects in the power sector
It is important to analyse locations where investors
engaging energy projects will have the necessary
economic and social conditions to successfully
carry out their projects. A large amount of these
projects are engaged in rural communities, where
the social factor plays a big role and must be assessed
adequately and in parallel to the economic,
legal and environmental aspects.
Developments going forward
Energy reform is arguably one of the most ambitious
legal agendas of the Mexican government
in the past decade. In the midterm, it will accelerate
economic growth and foreign investments
in renewable projects. We are currently witnessing
the aforementioned first steps of foreign and
national private investors, and we expect those
developments to speed up within 2016 and afterwards.
As laws have just recently been passed or
implemented, their application is being tested.