(Bloomberg) -- Sweeping changes to Mexico’s clean energy regulations by President Andres Manuel Lopez Obrador’s administration has sparked a legal backlash from the industry.

In October, Mexico’s Energy Ministry said it would grant older, government-run projects the same energy certificates -- known as CELs -- as the new projects the certificates were designed to support. Now, clean energy companies representing 14 projects and almost half of all CELs issued have sued to block the changes from taking effect.

Foes of the government change say allowing older hydroelectric power generators to qualify for the certificates dilutes their value for companies seeking to build new projects. CELs can be sold to big users of electricity that are required to buy a certain amount of renewable power under government fiat. That creates extra revenue for wind and solar farms.

“This is a natural reaction to the government’s decision,” said Julio Valle, the head of strategy at the Mexican Association of Wind Energy, in an interview from Mexico City. “This will hurt the government’s clean energy goals and the legislation that was supposed to support companies generating” clean energy.

While Valle did not say who is taking part in asking for injunctions against the government action, companies affected by the change include local subsidiaries of Enel SpA, Engie SA and Iberdrola SA. Valle said the companies say the legal change constitutes a breach of contract as companies had planned projects taking the value of CELs into account.

If the suits are successful, the government’s planned changes could be postponed for further study under Mexican law.

To contact the reporter on this story: Justin Villamil in Mexico City at jvillamil18@bloomberg.net

To contact the editors responsible for this story: Carolina Wilson at cwilson166@bloomberg.net, Reg Gale, Jessica Summers

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