New provisions for electric vehicle charging infrastructure in Mexico

New provisions for electric vehicle charging infrastructure in Mexico

October, 2024

On September 11, 2024, Agreement No. A/108/2024 entered into force, by which the Energy Regulatory Commission issues the general administrative provisions on electromobility for the integration of charging infrastructure for electric vehicles and plug-in hybrid electric vehicles into the National Electric System as part of a Smart Grid (the “Provisions”).

This is a major step forward for Mexico, as it seeks to standardize and improve charging infrastructure in order to boost the market for hybrid and electric vehicles, which is set to enjoy significant growth opportunities. The specific objectives of the Provisions are: (a) to establish the requirements that must be met by persons seeking to connect charging infrastructure to the National Electric System (“SEN”) in a safe and orderly manner; (b) to ensure that electricity supply remains reliable and secure; (c) to establish the information that owners and/or representatives of vehicle charging infrastructure must provide through the “Electromobility Platform.” Persons wishing to install infrastructure must: (i) comply with the technical specifications set forth in the Provisions; and (ii) enter into an electricity supply contract, so that they will have electrical infrastructure independent from their charging center(s) that already receive electricity supply. The Energy Regulatory Commission (“CRE”) will develop the “Electromobility Platform” within a period of 24 months from the entry into force of the Provisions. The purpose of this digital platform is to serve as a tool through which up-to-date information on the charging infrastructure installed in the country is gathered, while also holding information on the characteristics and availability of charging points. In addition, aspects such as the charging mode and electricity prices will be viewable. Regarding the monitoring and reporting of information, End Users must submit reports to the CRE through the electromobility platform three months after contracting the service. Suppliers, on the other hand, will have to submit semiannual reports to the CRE and to the National Energy Control Center. The CRE may issue requests for information to End Users in order to review or verify installation conditions. Likewise, it may conduct verification visits to Suppliers and to the Distributor to monitor compliance with the Provisions. The CRE will work in coordination with the Federal Economic Competition Commission to oversee the development of the national market in matters of competition and free market access. Although we consider this will be a challenge for the industry, we believe that as these provisions are gradually adopted, investors will also gain greater legal certainty to begin investing more heavily in this sector. By implementing these Provisions and achieving standardization, a more sustainable future can also be ensured for citizens, contributing to the reduction of emissions and supporting compliance with the climate objectives set out in international agreements signed by Mexico. For Mexico, it is important to promote and adopt a comprehensive regulatory system for the expansion, safety, and efficiency of infrastructure, as only in this way will users feel comfortable and be able to rely on trustworthy charging stations. In this regard, the Provisions, together with the “Agreement of the Energy Regulatory Commission issuing the General Administrative Provisions for the integration of Electric Energy Storage Systems into the National Electric System,” which are about to be published in the Official Gazette of the Federation, form part of a body of regulations that seeks to regulate and promote the incorporation of advanced technologies into the National Transmission Grid and General Distribution Grids in order to consolidate a “Smart Grid.” At Von Wobeser y Sierra we are at your service to help you implement the measures necessary to fully comply with the Provisions. Should you require additional information, please do not hesitate to contact our expert partners in the following industries: AUTOMOTIVE, MOBILITY & MANUFACTURING Rupert Hüttler, Partner+52 (55) 5258-1038 | rhuettler@vwys.com.mx Luis Miguel Jiménez, Partner+52 (55) 5258-1058 | lmjimenez@vwys.com.mx Rodolfo Trampe, Partner+52 (55) 5258-1054 | rtrampe@vwys.com.mx ENERGY & NATURAL RESOURCES Edmond Grieger, Partner+52 (55) 5258-1048 | egrieger@vwys.com.mx Ariel Garfio, Partner+52 (55) 5258-1008 | agarfio@vwys.com.mx

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