SENER established the procedure for holders of Independent Power Production permits to voluntarily migrate to the generation regime under the Electricity Sector Law.
On April 16, 2026, the Ministry of Energy (“SENER”) published in the Federal Official Gazette the Guidelines for the Voluntary Migration of Independent Power Production Permits (the “Guidelines”).
The Guidelines regulate the procedure through which holders of Independent Power Production permits (“IPP Permits”) granted under the former Public Electricity Service Law (“LSPEE”) may voluntarily migrate to the generation regime established under the Electricity Sector Law (“LSE”), allowing power plants to continue operating under the new regulatory framework.
Migration is available exclusively to holders of valid IPP Permits. The application must be submitted before the final year of the permit term and must cover the full installed capacity of the Power Plant, as partial migrations are not permitted.
Until the procedure is completed, the Power Plant will continue operating under the IPP Permit and its applicable terms. If migration is not completed before the permit expires, the permit may no longer be migrated and will terminate in accordance with its original terms.
Key features of the procedure include:
• The new generation permit may have a term of up to 15 years, based on the modernization and, where applicable, rehabilitation program approved by the National Energy Commission (“CNE”).
• No additional interconnection studies, Reinforcement Works or related payments will be required to execute the interconnection agreement.
• Migration will not allow an increase in the Power Plant’s installed capacity.
• Generation permits granted through the migration procedure may not be extended.
• Where a Power Plant holds more than one permit, a single application must be filed and the total installed capacity consolidated into one permit.
The Guidelines provide for three migration modalities.
The first is Generation under an Electricity Coverage Agreement, under which the Power Plant obtains a generation permit linked to one or more electricity coverage agreements with the Federal Electricity Commission (“CFE”). Under this structure, CFE purchases at least 30% of the electricity and Associated Products, while the remaining volume may be sold in the Wholesale Electricity Market (“MEM”).
The second is Long-Term Production, under which all production is sold to CFE pursuant to the corresponding agreement, without participation in the MEM.
The third is Generation for the MEM, which allows the Power Plant to obtain a permit to participate directly in the market without a contractual relationship with CFE.
The selected modality must be expressly identified in the application and may not be changed during the procedure.
For Generation under an Electricity Coverage Agreement and Long-Term Production, the procedure generally includes submission of the application to the CNE; definition of the applicable technical, operational and contractual conditions through working groups coordinated by SENER; review and resolution of the application; execution of the corresponding agreements and legal instruments; and operational implementation of the migration.
Once the application has been admitted, the CNE must notify the applicant of the procedural schedule within 10 business days. The working-group stage may last up to three months and may be extended once for up to half of the original period.
Operational implementation must be completed within a maximum period of 20 business days under the applicable schedule and includes, among other matters, execution of the interconnection agreement, updating the asset registry with the National Center for Energy Control (“CENACE”), registration in the MEM and commencement of commercial operations.
The Guidelines allow commercial operation to begin even if the metering assessment and certain operational tests remain pending, providing a period of up to 24 months from the start of the procedure to demonstrate compliance.
Failure to comply with the applicable stages or deadlines will result in termination of the migration procedure, without prejudice to the IPP Permit remaining in force under its existing terms until expiration.
Under the Long-Term Production modality, the transfer of assets to CFE contemplated under Article 79 of the LSE Regulations will not apply unless otherwise agreed by the parties.
Generation for the MEM follows a different procedure, consisting of filing the application, completing the generation permit process under the applicable provisions and receiving the corresponding decision. In these cases, the permit holder will be responsible for complying with the requirements necessary to participate in the MEM.
The Guidelines entered into force on the date of publication and establish transitional rules for certain permits. Holders that had previously requested the migration of IPP Permits under the Electricity Industry Law or the LSE and ratified such request before the CNE may opt into the new procedure.
IPP Permits expiring in 2027 may also submit a migration application at any time before expiration. In addition, IPP Permits that have already migrated to a generation permit under the LSE may, on a one-time basis, participate in the procedure provided that the application is submitted within 20 business days following the entry into force of the Guidelines, that is, no later than May 15, 2026.
The Guidelines therefore establish a specific pathway for IPP Permit holders to transition to the LSE regime before their existing permits expire. The selected migration modality, the term of the new permit and the applicable contractual and operational conditions will be central to assessing the feasibility and implications of migration in each case.
Von Wobeser y Sierra is available to assist with the analysis of the Guidelines, the selection of the appropriate migration modality and the preparation and follow-up of the corresponding procedure.
