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.

Purpose

To assist the CRE in defining the necessary actions to promote the installation of geothermal projects, making use of the regulator’s new powers.

Main Activities

• Hire consultant with international experience in order to assist CRE
• Assist in developing a conceptual model of geothermal potential for power generation; one which will help to develop instruments and methodologies to promote geothermal use
• Suggest the necessary changes to regulatory instruments so they may fit the policies established by the Energy Ministry

Expected Impact

• Regulations and policies in place that attract investment in geothermal energy projects from private sector developers
• Increased geothermal energy capacity, particularly in the northwestern region of Mexico, where tectonic plate conditions make geothermal a feasible option