Mexico: Renewable Energy

This country-specific Q&A provides an overview of Renewable Energy laws and regulations applicable in Mexico.

  1. Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels?

  2. What are your country's net zero/carbon reduction targets? Are they law or an aspiration?

  3. Is there a legal definition of 'renewable energy' in your jurisdiction?

  4. Who are the key political and regulatory influencers for renewables industry in your jurisdiction and who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?

  5. What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others?

  6. Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)?

  7. How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?

  8. How are rights to explore/set up or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal and biomass?

  9. Is the government directly involved with the renewables industry? Is there a government-owned renewables company or are there plans for one?

  10. What are the government’s plans and strategies in terms of the renewables industry? Please also provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals?

  11. Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies offered? Equally, are there any disincentives?

  12. Has your Government had to continue to help with the basic cost of energy over the last year and has that led to any discussion about de-linking the gas price and renewables prices?

  13. If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?

  14. What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment.

  15. What are the key contracts you typically expect to see in a new-build renewable energy project?

  16. Are there any restrictions on the export of renewable energy, local content obligations or domestic supply obligations?

  17. Has deployment of renewables been impacted in the last year by any non-country specific factors: For example, financing costs, supply chain or taxes or subsidies (like the US's Inflation Reduction Act)?

  18. Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?

  19. How confident are you that your jurisdiction can become a leader in newer areas like offshore wind or hydrogen?

  20. How are renewables projects commonly financed in your jurisdiction?