GC ALERT | The Energy Regulatory Commission (“CRE”) issued the general administrative provisions setting the new requirements to apply for power generation Permits.

On March 30th, 2022, the CRE published in the Federal Official Gazette the Governmental Agreement number A/006/2022 setting the General Administrative Provisions that establish the terms to submit information related to the corporate purpose, legal, technical, and financial capacity, as well as the description of the project, and the application form to apply for power generation permits (the “Provisions”).

The Provisions significantly increase the information and documents to be submitted by applicants, including, in addition to the original requirements, among others: (i) the need to identify each of the applicant company’s partner or shareholder down to individuals, (ii) the need to provide a detailed description of the rights conferred to each type of share or equity interest; (iii) confirmation regarding permits granted by the CRE or the Mexican Ministry of Energy in favor of the partners or shareholders of the applicant; and (iv) a mandate to submit evidence that the results of the system impact study have been obtained by the National Energy Control Center (“CENACE”) as part of the permit application, making it indispensable to start the processes related to interconnection before submitting the permit application.

Furthermore, the Provisions clarify that any permit granted will be specific and only be issued to produce power when an interconnection agreement is not required in relation to all projects allocating their entire power generation to isolated supply. Therefore, in the event power plants choose to interconnect to the National Electric System, they must request a modification to their generation permit.

Finally, the Provisions set out that the commercial operation notice before CRE must be accompanied by the official notice issued by CENACE following section 12.4.9 of the Manual for the Interconnection of Power Plants and Connection of Loads. By publishing the Provisions, Resolution number RES/182/2015 published in the Federal Official Gazette on April 8th, 2015, is now repealed. However, this resolution will remain in effect for permit applications filed before March 30th, 2022.

At González Calvillo, we are prepared to provide any advice required in relation to these new regulatory provisions. At González Calvillo, we are prepared to provide any advice required in relation to these new regulatory provisions.

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About Gonzalez Calvillo

For over 30 years, Gonzalez Calvillo has been at the forefront of the legal market in Mexico as a full-service leading law firm due to its transactional core and expertise in a wide range of practice areas. The firm is recognized for its ability to build cross-disciplinary teams for the most complex legal challenges and long track record of successfully providing groundbreaking business and regulatory advice to high-profile domestic and international companies. Often described as a pioneer of the Mexican legal services industry, the firm is known for its commitment to do things differently, bespoke solutions, and creating transformational legal changes that enable clients to achieve their objectives.

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