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Proposals for Strengthening the Electricity Sector in Mexico’s New Energy Regime

This is an extract from Institute of the Americas, first published on September 2025. The entire publication can be read here: https://iamericas.org/reporte-sector-electrico-mexico-2025-2030/

Mexico’s evolving energy framework is at a pivotal moment, reshaping how electricity is generated, financed, and distributed nationwide. The federal government has reaffirmed its commitment to strengthening the Comisión Federal de Electricidad (“CFE”) as the cornerstone of the power sector, while selectively engaging private participation to help meet rising domestic and industrial demand. As new regulations and mixed-contract models near publication, attention is turning to how these mechanisms will shape investment dynamics, project development, and long-term energy security.

Recent proposals to bolster CFE’s generation capacity are central to Mexico’s broader economic and environmental objectives. By emphasizing reliability, national sovereignty, and affordability, policymakers aim to reduce dependence on imported fuels, expand renewable generation, and support industrial growth. At the same time, the success of these initiatives will depend on establishing transparent, bankable frameworks that attract both public and private capital while ensuring fair competition and sustainable returns.

This report examines the measures under consideration and their potential implications for Mexico’s electricity market. It analyzes how public and private stakeholders may collaborate under the new policy regime, the financing tools available to accelerate investment, and the opportunities and challenges these changes present for domestic and international players. As Mexico redefines the balance between state control and market participation, the coming months will be critical in determining how the country positions itself for a more resilient, competitive, and sustainable energy future.

Read the full report here