SENER established the procedure through which holders of Independent Power Production permits may 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 (“IPP”) permits granted under the former Public Electricity Service Law 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. Applications 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 migration process is completed, the power plant will continue operating under the IPP permit and its existing terms. If migration is not completed before the permit expires, the permit may no longer be migrated and will terminate according to 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 process 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 allows the power plant to obtain a generation permit linked to one or more electricity coverage agreements with the Federal Electricity Commission (“CFE”). Under this structure, CFE will purchase at least 30% of the energy and Associated Products, while the remaining volume may be sold in the Wholesale Electricity Market (“MEM”).
The second is the Long-Term Production modality, under which all production is sold to CFE pursuant to the corresponding agreement, without participation in the MEM.
The third allows the power plant to migrate to a generation permit and participate directly in the MEM, 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 the first two modalities, the process 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 relevant agreements and legal instruments, and operational implementation of the migration.
The final stage includes, among other matters, execution of the interconnection agreement, updating the asset registry with the National Center for Energy Control (“CENACE”), registration to participate in the MEM and commencement of commercial operations. The Guidelines allow commercial operation to begin even if certain metering and operational testing requirements remain pending, providing a period of up to 24 months to demonstrate compliance.
For direct participation in the MEM, the procedure is more streamlined and consists primarily of filing the application, completing the generation permit process and receiving the corresponding decision. The permit holder will remain responsible for complying with the requirements applicable to market participation.
The Guidelines entered into force on the date of their publication and include transitional provisions for certain permits. IPP permits expiring in 2027 may submit a migration application at any time before expiration. In addition, permits that have already migrated to a generation permit under the LSE may, on a one-time basis, participate in this procedure if the application is submitted within 20 business days following the entry into force of the Guidelines, that is, no later than May 15, 2026.
Overall, the Guidelines establish a structured pathway for IPP permit holders to transition to the LSE regime before their existing permits expire. The choice of migration modality, the term of the new permit and the applicable contractual and operational conditions will be central to assessing the feasibility and strategic implications of each alternative.
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.
