- Mexico Moves Forward in the Implementation of Clean Energy Certificates
- April 17, 2015 | Authors: José Estandía; Mauricio E. Llamas C.; William P.M. Schwind; Teresa Souza; Alberto de la Parra Z.
- Law Firms: Jones Day - Mexico, D.F. Office ; Jones Day - Houston Office ; Jones Day - Mexico, D.F. Office
- As part of the framework of Mexico's Energy Reform and National Climate Change Strategy to reduce greenhouse gases, on March 31, 2015, the Ministry of Energy ("SENER") published in the Official Federal Gazette the requirements to acquire clean energy certificates, which will go into effect in 2018.
What Are Clean Energy Certificates?
Clean energy certificates are instruments issued by the Mexican Energy Regulatory Commission ("CFE") that evidence the generation of a specific amount of electric energy from clean energy sources. They are used to demonstrate compliance with clean energy consumption requirements as a portion of the total amount of energy consumed. (See Jones Day Commentaries, "Mexico's New Electricity Market Guidelines," "New Electricity Legal Framework in Mexico," and "Mexico's New Regulatory Framework for Oil and Gas: Transportation, Refining, Environmental, and Tax" for further information.)
Who May Be Granted Clean Energy Certificates?
- Clean energy power generation plants that begin operations after August 11, 2014.
- Clean energy power generation plants owned by CFE that began operations before August 11, 2014 and that have implemented an expansion project to increase production.
- Clean energy power generation plants whose capacity was not included in an interconnection agreement under the legal regime in place before Mexico's energy reform.
The abovementioned power generation plants will have the right to receive a clean energy certificate for each megawatt-hour generated without fossil fuel.
If fossil fuels are used for generation, producers of electricity will have the right to receive a clean energy certificate for each megawatt-hour that is generated, multiplied by the percentage of fossil fuel-free energy that it generates.
Who Should Acquire Them?
Suppliers, qualified users who are active in the electric market, and end users who generate their own power, as well as those who receive electricity through an interconnection agreement under the laws in place before the energy reform, should acquire clean energy certificates.
What Are the Requirements to Obtain Clean Energy Certificates?
The requirements to acquire clean energy certificates, which will come into force in 2018, will be 5 percent.