The objective of the Sustainable Energy Technologies Development Project of Mexico is to improve the institutional capacity of ACE technology institutions (both public and private) in the territory of the recipient and to foster the commercialization of ACE technologies by providing financial incentives to the private sector, which together are expected to lead to GHG emissions reduction in the future. The project consists of three components. Component one has objectives to (a) conduct RNAs to assess the capacity of academic and research institutions, private enterprises, and subnational government entities across Mexico to develop and commercialize ACE technologies; (b) prepare the CERIPs that aim to boost institutional capabilities to produce clean energy technologies in order to broaden the currently concentrated energy R&D market in Mexico; and (c) identify promising initiatives that can be considered for financial support by the ACE program (Component 2) or the FSE. The objective of Component 2 is to move promising innovative clean energy technologies in Mexico toward commercialization by providing sub grants and TA through the ACE program. The ACE program will pilot a new approach to promote sustainable energy technology development by giving a leading role to private sector actors. If successful, this approach could increase SENER’s support for private sector led initiatives, an approach which is consistent with the energy transition underway in Mexico. Component three is project management which will use and strengthen the existing project implementation unit, SENER-UREP, within SENER to coordinate and manage the proposed Project. The additional workload of the proposed Project is expected to require the addition of four new team members: a procurement specialist, a financial management specialist, and two project managers, one for Component 1 and another for