COPARMEX Drives Legal Certainty, Collaboration in Energy Shift

Q: How did COPARMEX develop the “Clean Energy for All Mexicans” proposal, and what were the main drivers behind it?

A: The proposal originated from a recognized need. At the time, legislative progress on the energy reform had stalled. COPARMEX sought to have a better understanding of the government’s motivations behind its proposed legal changes, as well as the concerns of the private sector. In response, we convened experts with diverse perspectives to evaluate the situation and offer insights. This collaborative approach allowed us to gain a comprehensive understanding and develop recommendations that we believed were in the country’s best interest during a complex transitional period.

What became clear is that there is no single solution to the challenges facing the energy sector. Instead, a multi-stakeholder effort is essential, involving coordinated action across political, regulatory, and business spheres. We also acknowledged the private sector’s responsibility not only to advocate for the sector, but to reflect internally and address areas where improvement was needed. 

Over the past six months of the new administration, we have seen the proposal evolve into a living and dynamic work plan.

Q: What has been the response from industrial players to COPARMEX’s proposal? 

A: With the recent legislative changes, we now face a new phase. The private sector must play an active role in promoting and adapting to new generation models, whether for on-site generation or larger-scale projects. We must also ensure legal certainty and close collaboration with authorities as the Ministry of Energy develops its new regulations over the next 180 days.

This has now become an ongoing effort, a work plan that must continuously integrate innovation, in the form of emerging storage technologies, and remain adaptable to new developments in the sector.

Q: How do you foresee collaboration between public and private stakeholders in upcoming projects?

A: Over the next five months, regulatory clarity will be essential, particularly given the broader uncertainty associated with the pending judicial reform. Establishing how regulations define contract structures, long-term power purchase agreements with CFE, participation frameworks for the CFE’s market share, or mechanisms for selling surplus energy will be essential. These contracts will determine the viability of upcoming investments.

Given that many large-scale projects will depend on foreign capital, legal certainty becomes even more important. This will likely require international arbitration clauses to reassure investors, which poses a challenge for the current administration. Regardless, it is vital that the forthcoming regulations and administrative guidelines, whether issued by the Ministry of Energy, the National Energy Control Center (CENACE), or other bodies, prioritize certainty and transparency.

From the private sector's perspective, regulations often appear reasonable in theory. However, once they are applied in practice, companies face real transaction costs and implementation difficulties, especially when regulations are developed without business input from the outset. Maintaining a strong dialogue with regulators is crucial. We believe this period should be seen as an opportunity for genuine exchange with the Ministry of Energy and all implementing agencies. It is only through this collaboration that we will be able to foster the confidence and stability needed to attract investment and deliver the energy transition the country requires.

Q: How would you assess Mexico’s international relationships and their impact on investment attraction and business certainty?

It is impossible to understand tariff wars or protectionist trade policies, such as those we have seen from the United States, outside the broader context of the North American trade agreement, which has brought considerable benefits to all three member countries. There is a global competition underway to attract foreign direct investment (FDI), and the United States is actively positioning itself to capture more of this capital at Mexico’s expense. This competition is ongoing and takes many forms. In this environment, it is our responsibility, both from the private sector and the government, to provide certainty for investors. 

Certainty can come in three forms. The first is by ensuring that businesses have a voice in shaping regulations and that the government is actively listening to the concerns of stakeholders as it defines the new rules for the energy sector, especially within the framework of the Electricity Industry Law. Second, companies must continue to promote and develop the new generation schemes that are already permitted under current law. There has been a great deal of misinformation in the public and political spheres, but the reality is that today we do have viable generation models: on-site generation, distributed generation (which continues to grow), self-supply, and efficient cogeneration, which is especially relevant for SMEs. Lastly, it is crucial for the Wholesale Electricity Market (MEM) to remain operational. Many people ask whether the market still exists, and the answer is yes. Companies are still billing, settling payments, and transacting normally with CENACE. While some regulatory adjustments are expected, there will not be any radical disruptions to the market’s operational or financial structure.

The end goal with this is projecting to the outside world that Mexico is working collaboratively and transparently. The rules of the game must be clear, and once they are, we must get to work. As entrepreneurs, we want two things: to contribute and to operate under stable and optimal conditions. That is the perspective from which we aim to work alongside the relevant authorities in the federal government and within the energy sector.

Q: What are the Energy Commission’s objectives for 2025?

A: Our main priority is to exert meaningful influence through open dialogue in shaping the upcoming regulations, not only in the electricity sector but also in hydrocarbons, refined products, LP gas, and natural gas.

We aim to have an impact across the entire energy value chain by advocating for clear, consistent rules. At the same time, we want to maintain our leadership position, both in public engagement with government entities and in the private sector’s development of energy-related activities.

Those are our two guiding pillars: to shape policy through constructive input and to continue being a leading voice in Mexico’s energy sector.

COPARMEX’s National Energy Commission is a specialized body within Mexico’s Employers Confederation that represents the interests of the private sector in energy-related matters.