1. Introduction to
Renewable Energies
Legal Framework in
Mexico
Benjamin Torres-Barron
Baker & McKenzie Abogados, S.C.
October 18, 2012
Las Cruces Convention Center
Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used
in professional service organizations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly,
reference to an "office" means an office of any such law firm.

2. I. Mexican Energy Sector
CRE
CRE SENER PEMEX
PEMEX
PEMEX
CRE
Energy Regulatory
Energy Regulatory Ministry of Energy Oil &&Gas
Oil Gas
Oil & Gas
Commission
Commission
CONAE IMP
National Commission Oil Research CFE
for Energy Saving Institute
Electricity
CONSENUSA IIE
National Commission Electricity Research
for Nuclear Safety Institute
National ININ
Hydrocarbons
Nuclear Research
Commission
Institute
National Commission
for the Efficient Use
of Energy
New Entity
Management Bodies State Owned Entities

3. Constitutional framework
– Article 25 – The public sector shall have at its charge, the strategic
areas mentioned in Article 28, …Federal Government shall always
maintain its property and control on the established entities
– Article 27 – Mexican State is exclusively entitled to generate, conduct,
transform, distribute and provide electric energy for the public service.
No concessions shall be granted to any person in this sector
– Article 28 – The generation of electricity activities performed by the
Mexican State shall not constitute a monopoly

4. Activities of the Electric Sector
Definition by Exception….
Generation Transmission Distribution Sale
Public Utility, National Electric
Nuclear Power System (SEN)
Cogeneration, Different to the
Self-supply, Small SEN
Production, PIE,
Export/Import
Emergencies
Activities reserved to the Nation
Activities allowed to the private investment

5. Law for the Use of Renewable Energies and Financing of
the Energy Transition
• Intended to foster and finance renewable energy projects
• Regulates the renewable energy sources and clean technologies to
generate electricity
• Empowers the authority to promote the use of renewable sources
• Facilitates the interconnection of renewable energy projects to the
national electric grid
• Fund for Financing the Energy Transition

6. Regulations of the Law for the Use of Renewable
Energy and the Financing of the Energy
Transition
• Published in the Federal Official Gazette on September 2, 2009
• Collaboration Agreements between SENER and Federal entities
• Development and execution of the Special Program for the Use of
Renewable Energies by SENER
• Incorporation of the public sector resources for the National Strategy for the
Energy Transition and Sustainable Use of Energy
• Regulation for renewable generation and efficient co-generation. (i)
guidelines and methodologies for the consideration of the renewable
generators and contract models, (ii) pubic bids and (iii) projects outside
bidding procedures

7. Law for the Sustainable Use of Energy
• Aimed at promoting the efficient use of energy and the
development of new technologies
• Creates:
a) The Consulting Committee for the Sustainable Use of Energy and;
b) National Program for the Sustainable Use of Energy

8. Regulations of the Law for the Sustainable
Use of Energy
• Published in the Federal Official Gazette on September 11, 2009
• Provides the scope of the National Program for the Sustainable Use of Energy
• Identifies the information requirements that the National Subsystem of
Information regarding the Sustainable Use of Energy should have
• Sets the criteria to determine those users who have a high energy consumption
pattern
• Prescribes the requirement to include additional information regarding the
energy consumption in new equipments being distributed in Mexico

9. Special Program for the Use of Renewable Energies
– Public policies to promote the use of renewable energies
– Specific goals and actions to accomplish the energy transition in Mexico
– Looks for higher energy security, not depending in one energy source
– Aims to provide renewable energy-based electricity to rural communities
when connection to the national electric system can not be performed

10. Barriers in the renewable energies sector
– Lack of information
– High transaction costs
– Limited access to technology’s development
– Inadequate infrastructure
– Negative externalities of traditional energy are
considered
– Obstacles in permits and construction
– Evolution of the technology
– Lack of access to credit

11. Capital risks in the renewable energies
sector
– Higher initial capital costs
– Financing deficit
– Higher risk perception
– Insurance deficiencies
– Preference to short term returns of the investment

12. Thank You
Benjamin Torres-Barron
Benjamin.Torres@Bakermckenzie.com
Baker & McKenzie International is a Swiss Verein with member law firms around the world.
In accordance with the common terminology used in professional service organizations, reference to a
“partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an
“office” means an office of any such law firm.