New laws in Mexico open up six opportunities for the electricity industry, mainly related to clean energy and the modernization of the electricity grid.
By 2030, the CFE plans to add more than 22,000 MW of new electricity capacity. It will do so with solar, wind, and combined-cycle plants. It will also use cogeneration and storage projects. As a result, clean energy would represent about 38% of national generation. The country will thus move toward a low-emission economy and a reliable and competitive electricity supply.
Opportunities for the electricity industry
From the perspective of Claudia Sheinbaum’s administration, the inherited energy model left high social and environmental costs. Today, 36.7% of households live in energy poverty. In addition, Mexico is the 12th largest global emitter of GHGs, suffers from overexploitation of aquifers, and has lost industrial competitiveness.
However, a window of opportunity is emerging. With more investment, energy efficiency, and renewables, the country can develop specialized human capital and move toward energy sovereignty.
In turn, the U.S. Department of Commerce notes that, despite a more state-controlled sector, there are opportunities for U.S. companies aligned with clean energy and grid modernization. Renewable expansion will continue to drive demand for solar, wind, geothermal, storage, and smart grid solutions.
CFE
On March 18, 2025, Sheinbaum enacted a far-reaching energy reform. The restructuring of the sector prioritizes state-owned companies. Now, at least 54% of electricity must come from CFE plants. The rest, up to 46%, will be left to private generators. In addition, the CNH and CRE will disappear, replaced by a centralized National Energy Commission under the Executive Branch.
The laws establish six mechanisms for the private sector to participate in electricity generation, under a more controlled scheme with defined rules for investment and operation.
The new laws define six ways for the private sector to participate in electricity generation:
- Open competition for projects larger than 0.7 MW participating in Mexico’s wholesale electricity market.
- Large-scale projects developed by the private sector, with electricity sold exclusively to the CFE and possible transfer of assets.
- Joint ventures with the CFE, in which the latter has a minimum stake of 54%.
- On-site distributed generation of up to 0.7 MW, exempt from permit requirements.
- Self-generation systems between 0.7 and 20 MW, not connected to the national electricity grid.
- Self-generation systems between 0.7 and 20 MW connected to the grid, where surplus energy must be sold exclusively to the CFE.