Recent Regulatory Developments In The Mexican Power Sector

Following Mexico's energy regulatory reforms that began at the end of 2013 and were championed by the prior administration of former President Enrique Peña Nieto, foreign investment in the energy sector in Mexico flourished, in particular through three successful rounds of energy auctions that attracted considerable development of new wind and solar power generation plants. As with other countries in Latin America, the pendulum has swung back with populist candidates replacing "free market" leaning administrations, and current president Andrés Manuel López Obrador was elected to the presidency in part by his message that he would always put the Mexican people first. Since his election, his administration has used this line of argument to justify several changes that have disrupted foreign and private investment in critical infrastructure projects, such as the cancellation of the Mexico City airport project,¹ the cancellation of the fourth renewable energy auction,² th