Mexico: Initiative of Law for the Use of Renewable Sources of Energy (LAFRE)

Establishes the creation of a Program for the Use of Renewable Energy Sources of Energy. A minimum percentage of 8% in renewable energy contribution to total energy generation is established as a goal for 2012. This goal does not include big hydroelectric plants. SENER will develop and coordinate the implementation of the Program for the Use of RenewableEnergy Sources of Energy. The law establishes, among other things, that payments to private generators for the energy delivered to the National Electric System shall reflect the operation costs avoided by the suppliers through the operation of the generation projects. As well, the National Electric System shall accept electricity from renewable energy sources at any time it is produced.

Date Implemented: 2003

Status: Planned; Framework Policy

Funding Information: To achieve the goals it is deemed necessary to channel approximately 600 million pesos per year (equivalent to 55 million USD; at 2005 value) in order to grant incentives to foster public and private investment for the development and operation of RE electricity projects for public service, using competitive technologies. It is also necessary to provide additional resources (in the order of 400 million pesos per year approximately equivalent to 37 million USD) to promote other, less mature technologies, yet considered strategic for Mexico (electric and non electric applications), as well as to foster national research and technological development, as well as social development and economic growth in less advanced regions and population sectors. With regards to the trust fund, it establishes that federal resources will be used in the following way over the first year of operation: 55% for the “Green Fund”, to foster the use of RE mature technologies (electrical applications). 6% for the “Emergent Technologies Fund” (electrical applications). 10% for the “Rural Electrification Fund”. 7% for the “Biofuels Fund”. 7% for the “General RE Fund” (for non-electrical applications). 15% for the “Research and Technological Development Fund (FIDTER for its acronym in Spanish)”. At least 20% of FIDTER resources will be granted to assess national RE potentials.

References: http://www.conae.gob.mx/work/sites/CONAE/resources/LocalContent/4427/4/s...

http://www.ren21.net/iap/commitment2.asp?id=95