On February 7, 2020, the Ministry of Energy (“SENER”) published in the Official Gazette of the Federation the “Agreement by which the Ministry of Energy approves and publishes the update of the Transition Strategy to promote the use of cleaner technologies and fuels, pursuant to the Energy Transition Law.” (“Updated Strategy”), with the purpose of regulating the sustainable use of energy, as well as the obligations regarding clean energy and
1. The Updated Strategy sets forth the recommendation to SENER and to government bodies to maintain promotion mechanisms for clean energy, so as to achieve a reduction of polluting emissions and to reduce, under conditions of economic viability, the generation of polluting emissions in power generation. 2. It establishes the obligation to foster the sustainable use of energy in final consumption and in energy transformation processes, and thereby to promote the energy use of renewable resources and of waste. Such obligation will focus on the residential, commercial-services, and agriculture sectors, which together will drive the sector’s self-sufficiency. 3. Among the main objectives of the Updated Strategy, it defines: (i) fostering the reduction of polluting emissions by the electric industry; and (ii) reducing, under economic viability criteria, the country’s dependence on fossil fuels as a primary source of energy. 4. It provides for a long- and medium-term planning mechanism to meet the clean energy goals and the energy efficiency goal. 5. It promotes the establishment of incentives to encourage the purchase of products and services that prioritize energy efficiency or that make use of clean energy, specifically fiscal incentives such as subsidies for investments and loans at an interest rate lower than the market rate. 6. The Updated Strategy constitutes the governing instrument on the basis of which SENER will prepare the Special Energy Transition Program (PETE), as well as, where applicable, the National Electric System Development Program (PRODESEN) and the Programs for the Expansion and Modernization of the RNT (PAMRNT). For further information, contact our experts: Edmond Grieger, Partner: +52 (55) 5258 1048 | egrieger@vwys.com.mx Ariel Garfio, Associate: +52 (55) 5258 1048 | agarfio@vwys.com.mx Rebeca Márquez, Associate: +52 (55) 5258 1048 | rmarquez@vwys.com.mx Roberto Flores, Associate: +52 (55) 5258 1048 | rflores@vwys.com.mx
