The National Development Plan 2007–2012 sets the rational and sustainable use of natural resources and the progressive diminution of greenhouse effect gas emissions as a priority goal. The energy policy of Mexico aims to secure supply of energy, to diversify primary energy sources, reducing their environmental impact and to improve the efficiency and competitiveness of public companies. The installation of the most developed RE (hydraulic, biomass, wind and sun) in the shortest possible time is considered essential to obtain these goals.The National Development Plan 2013-2018 is currently being drafted by the government. Key points will include establishing indicators to measure the effectiveness of the government in all sectors of the economy, and measures to improve the democratisation of national productivity.On the 27th June 2007 in the official federal bulletin, the contract for interconnection to solar energy on a small scale was published. It is applicable to all solar energy generators with capacity equal to or less than 30 kW. The Law for the Promotion and Development of Bioenergies passed in February 2008, encourages the use of ethanol and other liquid bio-carburets.In November 2008, the Renewable Energy Development and Financing for Energy Transition Law was passed (the Renewable Energy Law). The Bill mandated SENER to produce a National Strategy for Energy Transition and Sustainable Energy Use and a Special Programme for Renewable Energy. The main objective of the Law is to regulate the use of RES and clean technology, as well as to establish a national strategy and financing instruments to allow Mexico to scale-up electricity generation based on renewable resources. SENER and CRE are responsible for defining those mechanisms and establishing legal instruments to allow the increase of renewable power generation.In November 2008, the Sustainable Use/Energy Efficiency Law was approved. Its objective is to provide incentives for the sustainable use of energy in all processes and activities related to its exploitation, production, transformation, distribution and consumption, including EE measures. More specifically, the law proposes:The creation of the Programa Nacional para el Uso Sustentable de la Energía, which targets energy efficiency. The Programme focuses on electricity consumption activities in the industrial, residential, commercial and public sectors (e.g. replacement of appliances, old refrigerators, and incandescent bulbs by CFLs, EE investments in municipalities, industrial motors EE, cogeneration in the cement, steel and iron industries, water pumping EE, etc.).The establishment of the Comisión Nacional para el Uso Eficiente de la Energía (CONUEE) as a decentralized body of SENER that (i) will advise the National Public Administration and (ii) promote the implementation of best practices related to EE. The Commission replaces the former Comisión Nacional para el Ahorro de Energía (CONAE), which has been the leading government EE body.The creation of a Consejo Consultivo para el Aprovechamiento Sustentable de la Energía as part of the above mentioned Commission to evaluate the compliance of objectives, strategies, actions and goals of the programme. This Council will consist of the Minister of Finance and six researchers with extensive experience in the area.The creation of the Subsistema Nacional de Informacion on EE to register, organize, update and disseminate information about energy consumption and its end-uses in (i) sectors that use this energy, (ii) distinct geographical regions of the country, as well as examining, (iii) factors that impel these uses and, (iv) indicators of EE.In this context, the government is carrying out the following activities: (i) a programme aimed at replacing incandescent bulbs (IBs) for Compact Fluorescent Lamps (CFLs) in the residential sector, targeting over 200 million CFLs over a five year period, (ii) an appliances replacement programme targeting more than 5.5 million appliances over a 5-year period, (iii) the modernization of the public transport system for long distances and surroundings, (iv) a programme for EE in municipalities including the substitution of lamps for more efficient public lighting, (v) industrial and commercial EE programs, (vi) supply side EE in the electricity sector, and (vii) EE in PEMEX.On August 12th 2013, the Mexican government presented a wide-ranging proposal for reform of the energy sector. The aims of the proposal include further developing the country’s oil and natural gas market as a source of economic growth, lowering electricity prices for the populace, and encouraging private participation in the energy sector. Key measures in the proposal include more autonomy for the parastatal CFE and PEMEX, whilst still retaining 100% state control of the companies. Also included are proposals to allow private participation in both the electricity and oil and gas sectors, specifically in upstream oil and gas operations, and in power generation, while maintaining state control over transmission and distribution activities. The proposed reforms also provide for the establishment of an independent transmission and distribution system operator to boost competitiveness, by determining power producer participation in the electricity market based on the lowest generation costs. In turn, these savings from competition should be passed on to consumers, resulting in lower electricity prices.Whilst there is no direct support for renewable energy within the energy sector reform proposal, indirect effects of the opening of power generation to independent producers could result in increased RE penetration in the country.