Mexico’s New Energy Sector Laws
On 18 March 2025, Mexico published a comprehensive package of new energy laws, fundamentally reshaping the country’s energy sector. Mayer Brown is well-placed to assist clients with projects in Mexico, as we have a deep understanding of these new regulatory changes and their impact. Below is a reference guide comparing the new applicable laws, the repealed laws, and their expected impact.
These new laws establish a new regulatory framework reinforcing the State’s central role in energy planning and control, which will have an impact on private-sector participation in electricity generation, hydrocarbon projects upstream, midstream and downstream, and associated infrastructure development. These laws came into force on 19 March:
| Subject Matter | New Law | Repealed Law | Main Impacts |
|---|---|---|---|
| Energy Transition | Energy Planning and Transition Law (Ley de Planeación y Transición Energética) | Energy Transition Law (Ley de Transición Energética) | Enhanced state-led energy planning, increased oversight on clean energy targets and policies. |
| Power | Electric Sector Law (Ley del Sector Eléctrico) | Electricity Industry Law (Ley de la Industria Eléctrica) | Establishes the Federal Electricity Commission’s priority over the private sector, securing at least 54% of electricity generation. |
| State Utility | Public State Company Law – CFE (Ley de la Empresa Pública del Estado, CFE) | CFE Law (Federal Electricity Commission Law) (Ley de la Comisión Federal de Electricidad) | Centralisation of the Federal Electricity Commission, removal of subsidiaries, increased vertical integration. |
| Hydrocarbons | Hydrocarbons Sector Law (Ley del Sector Hidrocarburos) | Hydrocarbons Law (Ley de Hidrocarburos) | Priority of PEMEX in oil and gas activities; centralisation of and increased control over the sector. |
| National Oil Company | Public State Company Law – PEMEX (Ley de la Empresa Pública del Estado, PEMEX) | PEMEX Law (Ley de Petróleos Mexicanos) | Reinforces PEMEX's dominance in the market; provides exclusive rights and priority in hydrocarbons activities. |
| Energy Regulator | National Energy Commission Law (Ley de la Comisión Nacional de Energía) | Coordinated Regulatory Bodies Law (Ley de los Órganos Reguladores Coordinados en Materia Energética) | Consolidation and centralisation of regulatory oversight of the energy sector under the National Energy Commission, which is now part of the Ministry of Energy. |
| Biofuels | Biofuels Law (Ley de Biocombustibles) | Biofuels Law (previously included within broader laws) | Specific regulatory framework and state-driven promotion for the production and use of biofuels. |
| Geothermal Energy | Geothermal Power Law (Ley de Geotermia) | Electricity Industry Law (Ley de la Industria Eléctrica) | Dedicated legal framework to regulate geothermal resources development. |
Given the far-reaching consequences of these reforms, stakeholders should carry out a thorough legal, financial, and operational assessment of its potential impact. Mitigating potential risks and safeguarding investors’ rights must remain a top priority, achieved through tailored strategies such as comprehensive due diligence, contractual revisions, and, where necessary, international arbitration.
