On December 24 2015 the long-awaited Energy Transition Law was published in the Federal Register.

The law – which Congress passed in the context of the 21st session of the Conference of the Parties to the 1992 United Nations Framework Convention on Climate Change – establishes the new legal framework applicable to the sustainable use of energy, as well as obligations on clean energy matters and the reduction of polluting emissions in the electricity industry.

Among other things, the law provides that the Ministry of Energy will set a goal of at least 25% of all power to be generated from clean energy sources by 2018, increasing to 30% by 2021 and 35% by 2024. Moreover, the law establishes a flexibility mechanism to comply with the clean energy obligations provided under the Electricity Industry Law. This mechanism will apply during the first four years following the entry into force of the clean energy obligations in 2018.

As one of the last statutes resulting from the historic energy reform of 2013, the Energy Transition Law will supersede the Law for the Sustainable Use of Energy and the Law for the Use of Renewable Energies and the Financing of Energy Transition.

For further information on this topic please contact Rogelio López-Velarde, Amanda Valdez, Daniela Monroy or Diego Campa at López Velarde, Heftye y Soria by telephone (+52 55 3685 3334) or email (rlopezv@lvhs.com.mx, avaldez@lvhs.com.mx, dmonroy@lvhs.com.mx or dcampa@lvhs.com.mx). The López Velarde, Heftye y Soria website can be accessed at www.lvhs.com.mx.

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