Mexico: New Regulatory Instruments Applicable To Renewable Energy And Cogeneration Projects

Last Updated: 10 December 2012
Article by Diana Sasse

The Department of Renewable Energies of Goodrich is pleased to inform that on August 21th was published in the Public Gazette the Resolution by which the Regulatory Energy Commission (CRE) issues the Feed-In Model Contract applicable to Collective Renewable Energy Sources on Small Scale. On September 26th the CRE also issued the General Regulations to Recognize Cogeneration Systems as Efficient.

With the publication of the aforesaid resolutions, the regulatory framework applicable to renewable energy and efficient cogeneration projects is completed and the applicable procedures are adapted to meet the necessities of the market participants. We think that the project developers will respond positively to the new mechanisms and that many projects are going to be implemented in the near future.

a) Feed-In Model Contract Applicable to Collective Renewable Energy Sources on Small Scale

The issue of the Feed-In Model Contract Applicable to Collective Renewable Energy Sources on Small Scale responds to the requests of many real estate developers regarding the necessity of having an agreement which could apply to multi-family buildings which have a shared generating source and whose residents want to share equally the rights and obligations regarding the power generation. The later, because the system has just one power line connection point with the public grid of the Federal Electricity Commission (CFE).

The aforesaid agreement is virtually identical to the agreement corresponding to individual generators, but it recognizes in addition the concepts of "collective renewable energy source" and of "proportional part". The first concept includes the electricity generation equipment, which is co-owned by the residents and whose capacitance cannot be higher than the amount of all the capacitances mentioned in the normal electricity supply agreements of each co-owner. The concept of "proportional part" allows to the developers and electricity consumers to show the amount of the total capacitance of the equipment which will be assigned to each consumer, which cannot be higher than 1 kW for residential use and than 30kw for general use on small scale. Furthermore, the total amount of the energy assigned to each consumer shall be the same than the total capacitance of the equipment.

Additionally, the collective source may be allocated in a different building than the one of each generator/consumer, provided that the system does not need energy transmission services form the CFE. Each owner of each building shall sign an agreement; the compensation system of the previous agreement remains without modifications.

By using this agreement, it will be economically feasible for the real estate developers the installation of one single power generation plant (mainly of photovoltaic technology) in residential complexes which will provide with electricity to every house of the complex. Due to the aforesaid, the developers will be able to use economies of scale and the installations will be cheaper.

b) General Regulations to Recognize Cogeneration Systems as Efficient

According to the Law for the Use of Renewable Energy and for the Financing of Energy Transition (Ley para el Aprovechamiento de Energías Renovables y el Financiamiento de la Transición Energética) and its Regulation, cogeneration projects may take advantage of the benefits and instruments granted to renewable energy projects, provided that the cogeneration systems are recognized as "Efficient Cogeneration" in terms of the CRE guidelines.

In February 2011, the Commission issued the Methodology for the Calculation of the Efficiency of Electricity Cogeneration Systems and the Rules to Recognize the Efficient Cogeneration (Metodología para el Cálculo de la Eficiencia de los Sistemas de Cogeneración de Energía Eléctrica y los Criterios para Determinar la Cogeneración Eficiente) (hereinafter referred to as the "Methodology"). This Methodology established the general rules to calculate the efficiency of cogeneration systems and a criterion of minimum percentages to recognize a project as of "Efficient Cogeneration". The efficiency of a cogeneration system shall be determined by using the following three variables: thermal energy, electricity generated and the fuel used in the cogeneration process.

With the publication of the General Regulations to Recognize Cogeneration Systems as Efficient, the CRE approved the calculation procedures which shall be used by the permit holders in order to proof that their cogeneration projects fulfill the minimum percentages to be recognized as of "Efficient Cogeneration". Said calculation procedures take into account the different technical features of the cogeneration systems.

The duration of the recognition as of "Efficient Cogeneration" depends on the capacity authorized in the respective permit to generate electricity.

With the publication of the aforesaid Resolutions, the regulatory framework applicable to efficient cogeneration projects is completed in order that the permit holders of cogeneration projects may take advantage of the mechanisms applicable to the permit holders for power generators with renewable energy supplies.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions