Today's Energy Priorities for Mexico's Long-Term Success

Mexico’s current energy transition is defined by both continuity and adaptation. After a six-year period marked by the rollback of the 2014 Energy Reform, the arrival of a new administration under President Claudia Sheinbaum has provided fresh clarity to the trajectory of national energy policy. While the foundational principles of energy sovereignty and CFE-led development remain intact, a more pragmatic tone is emerging. This shift has reopened the door, though in a more structured and selective fashion, for private sector participation in service of national objectives.

Compared to the previous administration, Claudia Sheinbaum’s government has maintained the social focus of the energy transition, while opening the industry up to collaboration with the private sector. According to Carla Medina, President, ASOLMEX, it is crucial for companies to understand this new vision, where energy is seen as a right, rather than just a product, and how the private sector fits within it to create more harmonious cooperation.  

"Only those players who agree to accompany the state in its vision toward 2030 will participate,” says Medina. “That, to me, sets the most important challenge in terms of the mindset of companies of different sizes, so they can optimize and capitalize on the opportunities opened by the new legal framework."

Mexico’s energy sector today must respond to overlapping pressures. Nearshoring and foreign direct investment have created a surge in energy demand, particularly in manufacturing and logistics corridors. Simultaneously, global supply chain realignments and clean energy commitments demand more resilient and diversified infrastructure. Under Sheinbaum’s government, strategic collaboration is likely to define the new normal. Joint ventures and specialized partnerships are expected to become the key mechanism for reconciling state control with private sector agility and expertise.

These partnerships and collaboration will require open dialogues between the private and public sector. For Juan Acra, President, COMENER, it is crucial for the private sector to emphasize the importance of new technologies and energies for the energy transition. Similarly, it is key to position Mexico as an active player in the global energy market, such as through a higher production of gas within the country. 

“Mexico must be involved in global energy discussions,” says Acra. “The formula for carrying out an accelerated energy transition is to expand the gas sector in the country. No matter what. That is what we (companies) have to do, more transmission pipelines, to have that firm source of energy with which to promote the development of renewable energies.”

Change Leads to New Opportunities, Challenges

Unlike the liberalization push that followed the 2014 Energy Reform, the current environment encourages private engagement through tailored roles that align with CFE’s priorities. Companies that offer technical solutions in grid stability, distributed energy resources, storage, and demand-side management are finding more traction than those solely focused on utility-scale generation. The limitations on private generation persist, but there is growing space for private firms to integrate technologies, financing models, and operational strategies that strengthen public infrastructure and expand access.

One of the main limitations for the private sector is time, however. With the government having the goal of 25% renewable generation by 2030, combined with increasing demand, the need to maintain energy independence while moving forward with the energy transition calls for alternative ways of generating energy within the country. For Vania Laban, President, AMGN, gas will continue to be a key piece in this tight schedule for the country’s energy transition. 

"My concern is time; it is the sense of urgency,” says Laban. “Despite our dependence on the United States, we continue to bet on (gas) because it makes sense. No, it is not a blind gamble. We have to find a way to increase our own production, to balance that matrix, but gas is going to continue being an extremely important player."

“We have to start extracting natural gas in an environmentally friendly way to put it to work for the benefit of Mexicans. That is where we are going to become more competitive,” says Carlos Hernandez, President of the Energy Commission, COPARMEX. Citing a national security emergency law, they (the United States) could shut off the natural gas supply on us … We cannot talk about sovereignty if we keep importing 70% of the natural gas in our country.” 

Today’s framework does not revert fully to the pre-2014 paradigm, but it clearly diverges from the post-reform liberal market model. Instead, it seeks a middle ground where state-led planning is complemented by selective and strategic participation from private players. This includes opportunities in energy efficiency services, co-generation at industrial sites, infrastructure financing, and technology deployment, especially where CFE lacks bandwidth or experience. Nevertheless, one of the main questions still in the mind of the private sector is what the future of private-public partnerships beyond generation might look like. For Gerardo Perez, President and Country Manager, AMDEE and EDF, having an open dialogue with the government on how companies can contribute to the energy transition beyond the supply of electricity is essential. 

“I would try to share (with the government) the vision that we entrepreneurs in the wind sector have,” says Perez. “I would communicate the advantages that exist in renewable energy and how private entities, without having to get involved in transmission issues, can participate more in that. In other words, we could also find mixed participation schemes.”

One of the challenges for private stakeholders is to move beyond a generation-centric view and embrace a systems-level perspective that includes services, infrastructure, integration, and co-investment. While large-scale renewable projects have slowed, there are still viable pathways for utility-scale development. These include hybrid projects with transmission support from CFE, industrial offtakers in energy-intensive regions, and regional initiatives aligned with federal decarbonization goals. Understanding where CFE is willing to co-invest or where transmission infrastructure will expand is becoming essential for identifying viable projects. 

Beyond the regulatory challenges, Hernández believes that there are three main additional obstacles for companies and investors when it comes to the energy sector in Mexico: making sure that the private sector promotes the existing generation scheme, understanding and navigating the new judicial reform, and having real talks about energy sovereignty. 

Looking forward to this new era for the energy sector, Guillermo Garcia, Professor, ITAM and former Chair, CRE, believes that the new system, more open to dialogue and private-public collaboration and partnerships symbolizes a bright future full of opportunities for the industry. 

"There is a new model where there is collaboration with the public sector, and where not everything is market-driven, nor controlled by the state. I think we have to find those definitions and those bridges where collaboration can happen,” says Alcocer. "This is an attractive model, one that can be worked on, and we have to collaborate with the government so they can be successful and so we can provide the energy that the industry needs."