The energy transition act: the path towards a low carbon economy

One of the central elements of the Energy Reform was to update Mexico’s energy sector with the best international practices to essentially move towards a framework open to private investment, stimulating competitiveness between companies at the same time as making the constitutional mandate of incorporating the concept of sustainability into every value chain a reality, thereby achieving benefits for society and creating a healthier and better quality environment.

In Mexico, natural renewable resources play a leading role in the energy policy. In August 2014, secondary legislation of the Energy Reform was published. For the electricity sector, there are four notable elements that will promote clean energy:

• The new Electrical Industry Act establishes the obligation to create a wholesale electricity market with the aim of achieving competition in power generation.
• The obligation to have a minimum percentage of clean energies through the so-called Clean Energy Certificates.
• The creation of an independent electrical system operator, to guarantee correct market operation and compliance with the clean generation portfolio.
• To stimulate a resource of which Mexico enjoys extraordinary abundance, a specific law has been designed to promote and make use of geothermal energy. Read more…

Leonardo Beltrán Rodríguez
Deputy Secretary for Energy Planning and Transition of the Mexican
Secretariat of Energy (SENER)

Article published in: FuturENERGY January-February 2016