SENER complies with the ruling of Collegiate Court that renders invalid reforms changing the Clean Energy Certificates provisions.

I. Introduction:

On March 12th, 2024, in the Official Gazette of the Federation ("DOF") it was published the Official Letter No. SENER 100/079/2024, through which the Ministry of Energy ("SENER") nullifies the: "Accord amending the Guidelines establishing the criteria for the granting of Clean Energy Certificates and the requirements for their acquisition published on October 31st, 2014" and the "Accord amending the Second Transitory of the Accord amending the Guidelines establishing the criteria for the granting of Clean Energy Certificates and the requirements for their acquisition published on October 31st, 2014, published on October 28th, 2019," published in the DOF on October 28th and December 10th, 2019 subsequently. (the "Accord").  

II. Background:

1. On October 31st, 2014, the SENER published in the DOF the Guidelines establishing criteria for the issuance of Clean Energy Certificates and the requirements for their acquisition.

Through these Guidelines, the SENER established who were the "Clean Generators" entitled to receive Clean Energy Certificates (“CEL”) for a period of 20 (twenty) years.

Among the "Clean Generators" entitled to receive CEL were “Legado” Power Plants that generate electricity from Clean Energies and that commenced operations before August 11th, 2014, provided they have undertaken a project to increase their Clean Energy production.

1. On October 28th, 2019, SENER published in the DOF the "Accord amending the Guidelines establishing criteria for the issuance of Clean Energy Certificates and the requirements for their acquisition, published on October 31st, 2014" (the "First Accord").

With this First Accord, SENER intends to modify the "Clean Generators" entitled to receive CEL for 20 (twenty) years, leaving only Legacy Power Plants without the restrictions of undertaking projects to increase their Clean Energy production.

1. Finally, on December 10th, 2019, SENER published the "Accord amending the Second Transitional Provision of the Accord amending the Guidelines establishing criteria for the issuance of Clean Energy Certificates and the requirements for their acquisition, published on October 31st, 2014, published on October 28th, 2019" (the "Second Accord").

With the Second Accord, SENER intended to establish that the effects of the First Accord would only apply to Legacy Power Plants for accrediting Clean Energy produced after the publication of the First Accord in the DOF.

The objective behind the modifications included in the First and Second Accord was to allow that the legacy power plants owned by CFE could receive CELs. As a result, a large amount of CELs would have been issued in favour of already existing power plants, which would decrease its market price and, naturally, would not incentivize the installation of new clean energy capacity.

1. Both Accords were challenged by private companies through the filing of an amparo lawsuit, which was admitted under number 1724/2019. A final favourable verdict was issued on June 15th, 2022, rendering the Accords null and void.

1. As a result, SENER filed a motion for review against the verdict, which was admitted under number R.A. 609/2022. However, it was dismissed by the First Circuit Tribunal specialized in Economic Competition, Broadcasting, and Telecommunications, which, through a resolution dated February 1st, 2024, upheld the appealed sentence.

               III. Content of the Accord:

Following the confirmation of the final verdict by the First District Court specialized in Economic Competition, Broadcasting, and Telecommunications, located in Mexico City and with jurisdiction throughout the Republic, through an accord dated January 14, 2024, it ordered the dissemination of the final verdict to all participants in the wholesale electricity market and the general population by publishing it in the DOF.

In this regard, with the publication in the DOF of the Accord, SENER announces that it nullifies the following Accords: “Accord amending the Guidelines establishing the criteria for the granting of Clean Energy Certificates and the requirements for their acquisition published on October 31st, 2014” and “Accord amending the Second Transitory of the Accord amending the Guidelines establishing the criteria for the granting of Clean Energy Certificates and the requirements for their acquisition published on October 31st, 2014, published on October 28th, 2019,” published in the DOF on October 28th and December 10th, 2019, subsequently.

Therefore, with the entry into force of the Accord, on March 13th, 2024, the Guidelines establishing criteria for the issuance of CEL and the requirements for their acquisition that shall apply are those published in the DOF on October 31st, 2014, which will incentivize the installation of new clean energy power plants, or the increase of the capacity of already existing ones.