For setting up renewable projects in Mexico, the law establishes that all power plants with an installed capacity of 0.5 MW or higher require a generation permit granted by the Energy Regulatory Commission, regardless of the source of the energy. The generation permit allows the permit holder to produce power in the relevant generation facility, as well as operate the transmission line required to interconnect the power plant to the transmission or distribution grid, as the case may be. Generation permits are granted for a term of up to 30 years. In addition, depending on the source of energy, other governmental authorizations could be required.
Regarding geothermal energy, the obtainment of an exploration permit granted by the Ministry of Energy is required, which allows the permit holder to explore areas with geothermal potential within an extension of up to 150 km2 and for a term of up to three years (extendable for three more years). If geothermal resources are discovered, the exploration permit holder could request a concession for the development of such geothermal resources, which is also granted by the Ministry of Energy for a term of up to 30 years.
In connection with hydropower, a concession granted by the National Water Commission (Comisión Nacional del Agua) is required for using water to produce power, except if used in small-scale generation projects. Water concessions are granted for a term of up to 30 years and can be extendable.
Regarding biomass, permits granted by the Ministry of Energy or the Energy Regulatory Commission could be required for production, storage, transportation, distribution by pipelines, commercialization and retail. No particular governmental authorizations are required for using solar or wind resources for generation purposes.
Nuclear generation is reserved for the Mexican State through the Federal Electricity Commission. There are no specific rules for carbon capture or hydrogen.
The governmental authorizations required for transferring renewable projects would depend on how the transfer is being implemented (sale of assets, sale of shares of a special purpose vehicle, among others). Those usually include authorizations from the Energy Regulatory Commission and the Federal Antitrust Commission.