On February 4, 2025, President Claudia Sheinbaum submitted to the Senate a package of energy reforms aimed at transforming the secondary legislation of the sector. As part of this comprehensive reform, eight new laws are enacted, and three others are amended, with the goal of strengthening state oversight, ensuring energy security, and promoting the transition to a more sustainable model.
On February 4, 2025, President Claudia Sheinbaum submitted to the Senate a package of energy reforms aimed at transforming the secondary legislation of the sector. As part of this comprehensive reform, eight new laws are enacted, and three others are amended, with the goal of strengthening state oversight, ensuring energy security, and promoting the transition to a more sustainable model. In this second part, we will analyze the initiatives of (i) the Energy Planning and Transition Law, which redefines the national strategy for clean energy, (ii) the National Energy Commission Law, which replaces the CRE with a new centralized regulatory entity, (iii) the Geothermal Energy Law, which modernizes the regulations for the use of geothermal resources in the country, and (iv) the State-Owned Enterprise Law for the Federal Electricity Commission.
1. Energy Planning and Transition Law.
The Energy Planning and Transition Law ("EPTL") seeks to establish a comprehensive strategy for the energy transition, strengthen state oversight, and ensure the country's energy security and self-sufficiency. This law introduces structural changes in the planning and regulation of the sector, with a broader focus that includes not only the generation of clean energy but also the diversification of the energy matrix and the consolidation of a more sustainable and equitable model. Upon its eventual entry into force, the EPTL will repeal the Energy Transition Law ("ETL"), published in 2015, and replace its regulatory framework with a more robust structure for planning, control, and financing. The new legislation establishes a series of strategic instruments that will allow for clearer definition of the country's energy goals, aligning renewable energy efforts with energy security and economic efficiency.
• Shift in Focus: From Sectoral Regulation to Comprehensive Planning
While the ETL focused on regulating the sustainable use of energy, clean energy, and the reduction of pollutant emissions in the electricity industry, the EPTL broadens its scope to encompass the entire energy sector, including the electricity and hydrocarbons industries. One of the most notable changes in the EPTL is its emphasis on strengthening state oversight of the energy sector. Unlike the ETL, which promoted private participation under market rules, the EPTL seeks to ensure the Federal Electricity Commission's (CFE) primacy as the guarantor of electricity supply, ensuring the continuity, accessibility, and reliability of the service.
• Creation of New Energy Planning Instruments
The EPTL aims to introduce a more robust and binding planning structure, consisting of the following plans:
• National Energy Transition Strategy: Defines long-term goals for the energy sector.
• Electricity Sector Development Plan (PLADESE): A guiding document for the expansion and modernization of the electricity sector.
• Hydrocarbons Sector Development Plan (PLADESHI): Defines strategies for the production, storage, and transportation of hydrocarbons.
• Energy Transition and Sustainable Energy Use Plan (PLATEASE): Establishes specific strategies for diversifying the energy matrix and reducing emissions.
• Incorporation of the Concept of Energy Justice and Combating Energy Poverty
A novel aspect of the EPTL is the inclusion of Energy Justice as a guiding principle. The law establishes mechanisms to reduce energy poverty, ensuring that all communities in the country have access to electricity and energy to meet basic needs such as lighting, refrigeration, and cooking. To this end, the Universal Energy Service Fund is created, which will finance electrification projects in marginalized rural and urban areas, prioritizing clean energy and efficient technologies.
• Modifications to the Clean Energy Certificates (CELs) Scheme
The EPTL introduces significant changes to the Clean Energy Certificates (CELs) scheme, aiming to make its application within the Mexican energy market more efficient and realistic. Unlike the ETL, which established a granting methodology based solely on electricity generation from clean sources, the EPTL adjusts the rules to more accurately reflect each technology's actual contribution to decarbonization. Specifically, one of the most relevant changes in the EPTL is the requirement to evaluate the effective emissions of each technology before granting a Clean Energy Certificate. Under the ETL, any generation facility using renewable energy or technology considered "clean" could receive CELs without considering its total impact on the electrical system's emissions. Another key change in the EPTL is the incorporation of a fossil backup analysis in the issuance of CELs. Under the previous scheme, some clean generation technologies depended at times on the electrical grid to ensure continuity, which meant they could indirectly use electricity from fossil fuel sources. This adjustment seeks to incentivize the development of infrastructure that integrates clean energy without increasing the demand for fossil fuel-based generation.
• Greater Focus on Technological Development and Innovation
Another significant change the EPTL aims to introduce is the strengthening of scientific research and technological development in the energy sector. The EPTL establishes that the Ministry of Energy must promote innovation in energy storage, biofuels, transportation electrification, and new energy efficiency technologies.
• Transparency and Access to Energy Information
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