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Following a lot of speculation and expectative, a Decree was published in the Federal Official Gazette, on December 24, 2015, whereby the Energy Transition Law [Ley de Transición Energética] (LTE – initials in Spanish) was issued, therefore, both the Law for the Better Use of Renewable Energy and the Financing of the Energy Transition [Ley para el Aprovechamiento de Energías Renovables y el Financiamiento de la Transición Energética] and the Sustainable Energy Utilization Law [Ley para el Aprovechamiento Sustentable de la Energía], in force since 2008, were repealed.

LTE is comprised of 128 sections distributed along ten Titles, and 22 temporary sections. The Law, in accordance with its terms, is aimed at regulating the sustainable energy harnessing and the obligations in

matters such as clean energies and reduction of polluting emissions in the power industry, at the same time preserving competitiveness in the productive sectors.

The following aspects in the law contents are pointed out:

• It sets forth obligations related to clean energies, specificall y on the parties taking part in the electricity market and the parties to legacy contracts [contratos legados], to help to achieve the goals established in that regard.

• The need to establish energy-efficiency goals and electric-power consumption goals.

• Gradual substitution of fossil fuels to generate electric power.

• Obligation by the Ministry of Energy (SENER) and other agencies to issue regulating provisions detailing actions, instruments and mechanisms to efficiently develop clean energy generation.

• Reference to methodology for determining external (positive and negative) factors of clean energies.

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