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.