Mexico's New Administration Outlines Private Sector Participation In The Energy Sector

President Claudia Sheinbaum, who recently took office, announced her administration's plan to open private sector investment in power generation and clean energies, a shift from the prior administration of López Obrador where private sector participation was greatly limited. On November 6, Secretary of Energy Luz Elena González outlined Mexico's plan, consistent with its National Strategy for the Electricity Sector, to allow private sector investment in the energy market, with the following schemes:

1. Concessions granted through a bid process to deliver energy and capacity directly to the Federal Electricity Commission (CFE).
2. Private sector participation in the totality of the electricity generation market will be limited to 46%, with the majority generation of 54% corresponding to the state company CFE.