Mexico clears way for private sector investment in renewables

clipped from blog.reegle.info Until November it was virtually impossible for a private developer of renewable energy power plants to become an independent power producer (IPP) in Mexico. Article 27 of the Mexican Constitution precluded private investment stating that electricity generation for public use is an activity to be undertaken exclusively by the Government. Mexico’s enactment of a new law for the use of Renewable Energy and the Financing of the Energy Transition (Ley para el Aprovechamiento de Energías Renovables y el Financiamiento de la Transición Energética) substantially improves the legal framework for private investment in renewable energy projects. The law regulates renewable energy electricity generation for purposes other than providing public electricity services. The law states that the use of renewable energy for electricity generation is possible for private use and any excess energy can be sold, but only based on regulations and approvals by Mexico’s energy regulatory body, CRE.