Mexico Refocuses Energy Policy on Renewables, CFE

Q: What are the Ministry of Economy’s main priorities in the energy sector today?

A: The Ministry of Economy plays a crucial role in this new phase of the energy sector. One of our key priorities is the promotion of renewable energy. The president has repeatedly stated that our goal is to reach 23GW of generation capacity from renewables by 2030, accounting for 25% of the energy mix. To achieve this, the Ministry will focus on raising awareness and driving momentum through support for SMEs and other programs that promote renewable energy adoption. We are also working to create incentives for companies to join this transition.

Our approach involves encouraging companies and industries to ensure that a significant portion of their energy consumption comes from renewable sources. One of the Ministry’s flagship programs promotes the acquisition and use of solar panels, which helps to alleviate the bottlenecks currently affecting CFE’s transmission network.

In September, constitutional reforms were approved to strengthen Mexico’s energy sovereignty. Three articles of the Constitution were amended, and on March 18, secondary legislation related to the energy sector was published.

Among these, the Electricity Industry Law was reformed to re-establish CFE’s majority participation in electricity generation, now set at 54%, compared to 46% for the private sector. This shift requires both the public and private sectors to adapt to the new legal framework. We now have 90 days for these reforms to be implemented, and we await the publication of regulations on electricity transmission. Only then will we have the full picture.

Q: How do you envision public-private collaboration evolving in this context? There is already a framework for it, but what shape might these partnerships take?

A: From my perspective, these new secondary laws create greater clarity and better conditions for private sector participation. As the president has stated, we are building a framework based on clear rules and mixed participation.

Previously, the private sector held nearly 68% of the market, while CFE controlled only 34%. Today, the balance has shifted, but that does not exclude private companies. In fact, many have approached us to express that the new legal framework provides greater clarity and better terms for collaboration. The 46% reserved for the private sector is not exclusionary. CFE will work in partnership with private firms. For example, during a recent energy plan presentation, the Secretary announced seven CFE projects in which private companies can participate. These will be open for competitive bidding. We will gladly share the full details of the national energy plan with you.

DG also plays a critical role given the country’s high demand for energy, and it complements the transition to renewables. This sector grew significantly in recent years and we fully intend to continue supporting and strengthening that growth. There seems to be confusion surrounding the reforms, but I would encourage private companies to wait for the new regulations to be published.

Q: Based on what you have observed, what do you believe is the biggest misunderstanding about these reforms, and how would you respond to it?

A: I would not call it a misunderstanding but disinformation. Unfortunately, there are political actors who have deliberately spread misleading narratives. I usually avoid saying this, but it must be acknowledged. Much of the disinformation dates back to 2021, when the reform was rejected on the grounds that it would destabilize the sector. There were claims of blackouts, lack of resources at CFE, and more. But these arguments are not supported by reality.

During the so-called “Energy Reform” of the Peña Nieto administration, private companies had 10 years to demonstrate results. They did not deliver. Now, with the National Plan for Energy Justice, we are taking a different approach. We recognize that energy should not be a luxury for the few. It should be accessible and affordable for everyone in Mexico. That is what energy justice means.

For the first time, women are leading the energy sector: our president, the minister of energy, the chairs of both energy commissions in Congress, and myself. I believe this brings a new sensitivity to the table.

Companies should not be afraid. Changes are not intended to punish or restrict. The goal is to create a transparent, competitive market. In the past, only three or five companies dominated contracts. Now, the process will be open, with clear rules, and all qualified participants will have a fair opportunity to contribute and thrive.

The Ministry of Economy promotes economic growth, regulates trade and investment, fosters industrial development, innovation, and protects consumers.