Earlier this year, a group of Stoel Rives attorneys traveled to Mexico to assess existing opportunities and pending developments in the Mexican power markets. Some of the reforms and key trends identified during that trip are now taking shape. See also my blog post “Let the Market Decide: The Third Wave of Energy Investment in Latin America and Caribbean.”
Our work in Mexico included meetings with existing clients, senior partners of a major Mexican law firm, a briefing with a senior Mexican policymaker regarding implementation of the reforms and attendance at the Mexican International Renewable Energy Conference. Here are some key “take-aways” from these meetings:
- A Mexican renewable energy market has been successfully launched, with more wind than solar developed to date.
- A package of “secondary” laws implementing Mexico’s energy reform legislation are pending in the Mexican Congress.
- The secondary laws will include some form of renewable portfolio standard (e.g., 30% by 2024) that relies on (among other elements) renewable energy certificates.
- The secondary laws are also expected to launch a wholesale electricity market, a demand response market and other provisions designed to encourage distributed generation.
- Solar module manufacturers and other stakeholders are concerned about the government’s decision to apply a 15% import tax on electrical “generators” to non-NAFTA solar modules.