Until November it was virtually impossible for a private developer of renewable energyRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. powerUseful energy can be mechanical energy, for example powering a fan. plants to become an independent power producer (IPP) in Mexico. Article 27 of the Mexican Constitution precluded private investment stating that electricity generationElectricity generation includes all technologies that turn some form of energy into useful electric energy. for public use is an activity to be undertaken exclusively by the Government.

Mexico’s enactment of a new law for the use of Renewable EnergyThe ability to perform work, mainly kinetic, potential, thermal energy, but also in forms of gravitational, sound, elastic and electromagnetic energy. and the Financing of the Energy Transition (Ley para el Aprovechamiento de Energías Renovables y el Financiamiento de la Transición Energética) substantially improves the legal framework for private investment in renewable energy projects. The law regulates renewable energy electricityA form of energy having magnetic, radiant and chemical effects. Electric current is created by a flow of electrons. generation for purposes other than providing public electricity services. The law states that the use of renewable energy for electricity generation is possible for private use and any excess energy can be sold, but only based on regulations and approvals by Mexico’s energy regulatory body, CRE.

Last week 37MW of the Eurus wind farm commenced operations in Oaxaca. Once completed the project will have a total capacity of 250 MW (167 turbinesA turbine transforms kinetic energy into mechanical energy and provides the generator with rotation. of 1.5 MW). It will become the largest wind farmA group of wind turbines interconnected to a common power provider system through a system of transformers, distribution lines, and (usually) one substation. Operation, control, and maintenance functions are often centralized through a network of computerized monitoring systems, supplemented by ... in Latin America in terms of installed capacity, with a total investment of US$ 550 million. The project was developed by Mexican cement producer CEMEX, together with Spanish renewable energy company Acciona.

The project is a “self-generation” project as the power generated from the windWind occurs due to different temperature levels in the atmosphere (troposphere) which are heated up by the sun. A typical example are the trade winds at the equator where the sun is most powerful.. farm will supply CEMEX with 25% of their energy needs (according to CEMEX). More important are the carbon creditsCarbon credits provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading. that will be generated as the project qualifies as a CDMDefined in Article 12 of the Kyoto Protocol, the CDM is intended to meet two objectives: (1) to assist parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the convention; and (2) to assist parties included in Annex I in achieving ... (clean development mechanismDefined in Article 12 of the Kyoto Protocol, the CDM is intended to meet two objectives: (1) to assist parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the convention; and (2) to assist parties included in Annex I in achieving ...) project under the Kyoto ProtocolThe Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) was adopted in 1997 in Kyoto, Japan, at the Third Session of the Conference of the Parties (COP) to the UNFCCC. It contains legally binding commitments, in addition to those included in the UNFCCC. Countries .... Some 500,000 tons of CO2Carbon dioxide (CO2) is emitted in several ways. Naturally through the carbon cycle and through human activities like the burning of fossil fuels. These human activities have increased CO2 concentrations in the atmosphere since the beginning of the industrial revolution and these high ... credits are expected to be generated by 2012, although the project will mitigate 6 million tons over its lifetime.

Mexico’s Federal Electricity Commission, or CFE, has said that the country, which relies primarily on its oil resources for energy, would increase its mix of renewablesRenewable energy is power generated from infinite sources, such as wind or solar power. Conventional energy is generated from finite sources, such as natural gas or fossil oil. by 23 percent (up from 2 percent of the current mix) by the end of the current administration in 2012.