On April 16, 2026, the Ministry of Energy (“SENER”, per its acronym in Spanish) published in the Federal Official Gazette the Resolution issuing the Guidelines for the Voluntary Migration of Independent Power Producer Permits (the “Guidelines”).

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The purpose of the Guidelines is to regulate the procedure for the voluntary migration of independent power producer permits (“IPP”) granted under the repealed Public Electricity Service Law (“LSPEE”, per its acronym in Spanish), as well as the power purchase agreements linked thereto, to the frameworks established under the Power Sector Law (“LSE”, per its acronym in Spanish), in compliance with transitory article sixth of the LSE (“Migration Procedure”).

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It is important to note that the Guidelines are limited to the IPP scheme, and do not regulate the migration of projects in the modality of self-supply or cogeneration.

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The Guidelines seek to facilitate the transition of these plants to the new legal framework, seeking to promote their modernization and operational continuity.

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Following is a summary of the most relevant aspects of the Guidelines.

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A. General provisions

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The Migration Procedure is subject to the following general conditions:

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The application may be submitted at any time prior to the expiration of the independent power production permit, provided it is filed before the beginning of the last year of the permit’s term, with one year being the maximum period for the granting of the new permit under the LSE.

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For the granting of the generation permit, modernization actions and, where applicable, rehabilitation actions must be evidenced to guarantee the reliable operation of the power plant.

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The term of the new generation permit may be up to 15 years, in accordance with the modernization program approved by the National Energy Commission (“CNE”, per its acronym in Spanish). Permits granted through the Migration Procedure may not be extended.

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No additional interconnection studies, reinforcement works or associated payments are required for the execution of the interconnection agreement.

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Power plants with additional permits must migrate their entire capacity and consolidate into a single generation permit under the LSE. The Migration Procedure does not allow increases in the installed capacity of the power plants.

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B. Migration modalities

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The Guidelines provide for three migration modalities:

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      i. Modality A – Migration with Electricity Coverage Agreement with CFE. This consists of the granting of a generation permit for the Wholesale Electricity Market (“MEM,” per its acronym in Spanish) linked to one or more electricity coverage agreements with CFE, under which the volume of energy and associated products to be acquired by CFE is agreed, which may not be less than 30% of the plant’s total production. The permit holder may market the uncommitted volume freely. This modality comprises the granting of the generation permit, execution of the interconnection agreement, execution of the electricity coverage agreement, asset registration, metering systems diagnostics and, where applicable, fuel supply and capacity reserve.

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     ii. Modality B – Migration to Long-Term Production scheme. This consists of migrating to the Long-Term Production scheme referred to in the LSE, where the Mexican government does not contribute equity for project development and the entirety of the production is exclusive to CFE. Under this modality, CFE does not exercise the asset transfer contemplated in the Regulations to the LSE (“RLSE”, per its acronym in Spanish), without prejudice to a different agreement between the parties. This modality comprises the granting of the generation permit, execution of the interconnection agreement, execution of the Long-Term Production agreement, asset registration update and metering systems diagnostics.

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    iii. Modality C – Migration to generation for the MEM. This consists of migrating to a generation permit for the commercialization of products in the MEM. Under this modality, the application for the generation permit before the CNE and compliance with the other requirements to operate in the MEM are responsibility of the permit holder. (Unlike Modality A and B where there is coordination with authorities and CFE, as detailed in the following section).

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The chosen modality must be expressly stated in the application and may not be modified during the term of the permit.

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C. Stages of the Migration Procedure

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For Modalities A and B, the Migration Procedure comprises five stages:

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      i. First Stage: Submission of the migration application to the CNE. Within no more than 10 business days following admission, the CNE must establish a Migration Procedure calendar.

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     ii. Second Stage: Working sessions coordinated by SENER with CFE and the applicant to establish the terms of the agreements, as well as with the CNE, the National Energy Control Center (“CENACE,” per its acronym in Spanish) and the National Natural Gas Control Center. The working sessions and the execution of the agreement with the migration conditions must be completed within no more than three calendar months, extendable once for up to half of the original period.

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    iii. Third Stage: Review and evaluation for the granting of the generation permit by the CNE, in accordance with the requested migration modality.

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    iv. Fourth Stage: Formalization of the relevant agreements or legal or financial instruments.

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     v. Fifth Stage: Execution of the interconnection agreement, asset registration update with CENACE, enabling in the MEM and commencement of commercial operation. This stage must be completed within no more than 20 business days.

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Enabling in the MEM may be granted prior to completion of the metering systems diagnostics and reduced tests for start of operations, provided that the permit holder evidences compliance within no more than 24 months.

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For Modality C, the procedure is more streamlined and comprises three stages: (i) submission and admission of the application; (ii) commencement and development of the permit granting procedure under the regulations in matters of obtainment and amendment of permits; and (iii) notification of the corresponding resolution. In this case, the permit holder is responsible for completing all necessary procedures to operate in the MEM.

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D. Application requirements

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The migration application must be submitted to the CNE’s Electronic Filing Office and must include, at a minimum: information on the applicant and its legal representatives; data of the legacy permit; the chosen migration modality; the term of the power purchase agreements and interconnection contracts; technical data on the Power Plant; a business plan including the modernization and rehabilitation program; a statement that the entirety of the capacity is being migrated; and a statement of no outstanding debts with CFE.

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Admission must be resolved by the CNE within 10 business days following receipt. In case of omission or non-compliance with requirements, a 10 business days period will be granted to submit pending information.

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E. Other Implications

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Permits and contracts associated with an IPP permit remain in full force and effect until such permit expires or terminates. Where a difference exists between the term of an IPP and the term of the corresponding Power Purchase Agreement, the CNE may grant an electric power generation permit with a term that coincides with the termination date of the contract, such that both instruments continue to produce legal effects until their respective conclusions. Such permits are not subject to extension and are not deemed a migration.

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F. Transitory articles and effective date

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The Guidelines became effective on the date of their publication. Parties that, prior to the effective date of the Guidelines, had applied for the migration of independent power production permits under the Electricity Industry Law or the LSE, may submit their application under the new Guidelines. Permits expiring within one year of the effective date are exempt from the general deadline for submitting applications.

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In addition, permits that were already migrated to the LSE prior to the effective date of the Guidelines may, on a one-time basis, participate in the new Migration Procedure by submitting their application within 20 business days following the effective date.

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