Background
Faced with a sharp decline in Mexico’s crude oil production, in November 2008 the Mexican Congress approved the Renewable Energy Usage and Energy Transition Financing Act. This legislation established the groundrules for private self-generation projects using renewable energy, and conferred new powers on the Energy Regulatory Commission (CRE) to regulate the renewables sector.
Implementation of this law means addressing specific technologies such as geothermal, and ensuring that policies are put in place to encourage private sector investment.