Mexico Adopts New Law to Diversify Energy Sources with ESMAP/ World Bank Assistance
January 11 2010

About 76 percent of Mexico’s installed generation capacity is fired by fossil fuels. Faced with a growing demand for electricity, the Mexican Government has adopted a policy to diversify its energy sources. 


The Government of Mexico has a strong interest in promoting the international agenda on climate change. Mexico has committed to reduce its emissions.  In May 2007, President Calderón announced the National Climate Change Strategy which focuses on climate change as a central part of Mexico’s national development policy. Moreover, in July 2009, the Government of Mexico formally committed itself to a detailed long-term plan for emission reductions embedded in the Special Climate Change Program that provides an accounting of emissions by sector, creates a framework for monitoring improvements and establishes a legally binding blueprint for emission reduction initiatives, sector by sector.


 To reach these aggressive objectives, the government of Mexico passed the Renewable Energy Development and Financing for Energy Transition Law, which entered into force on November 28, 2008. The main objective of the Law is to regulate the use of renewable energy resources and clean technology, as well as to establish a national strategy and financing instruments to allow Mexico to scale-up electricity generation based on renewable energy sources. To help make this a reality, Mexico’s Renewable Energy Technical Assistance Program is helping the government promote and develop renewable energy and also assisting the Mexican government in the design of policies and regulations needed to implement its new Renewable Energy Law.  The technical assistance program is funded by Energy Sector Management Assistance (ESMAP) and the World Bank.


On November 3, 2009, a seminar was held in Mexico City on "International Experiences of Policy and Regulation to Promote Renewables."  The Seminar is part of the ESMAP Mexico Renewable Energy Technical Assistance Program aimed at helping the Mexican government implement its new renewable energy law. The event  was organized by the Mexican Secretariat of Energy (SENER) and ESMAP-World Bank.  Nearly 100 people attended the seminar, including representatives from government, the electric utility, private sector, and academia.  The World Bank’s Senior Energy Specialist, Leopoldo Montanez said, “We are providing technical assistance to the government to allow Mexican authorities successfully introduce renewables in their generation mix.  Our team is offering  just-in time advice and  support to  high level government authorities to facilitate the  implementation of  an effective Renewable Energy Strategy as well as enable exchange of  knowledge across countries.”


Since Mexico is endowed with   large indigenous potential of renewable energy, the new law establishes several mechanisms to promote the development of non-conventional renewable power by private investors.  The law for the development of Renewable Energy and the Financing of the Energy Transition was enacted in November 2008. 


The Seminar was opened by Jordy Herrera Flores, Subsecretario de Planeación Energética y Desarrollo Tecnológico (Secretariat of Energy-SENER).  Leopoldo Montanez (World Bank)  and Julio Valle (SENER) gave presentations on the ESMAP-WB technical assistance program and the renewable energy framework in Mexico.  Afterwards, four international experts spoke about the different international policies and regulations used to promote renewables in China, Vietnam, Spain, Brazil and the U.S.   A summary of the main points was provided by Alejandro Peraza (Energy Regulatory Commissioner-CRE) and the event was closed by Leopoldo Montanez.