Mexican energy minister hails reforms and private sector rules

Mexico's energy reforms will increase government control over the sector, strengthen state-owned energy companies and provide transparent rules for private investment, according to energy minister Luz Elena González Escobar.

President Claudia Sheinbaum signed the reforms into law on Tuesday.

Partly reflecting constitutional reforms that were approved in 2024, the revised laws enshrine the leadership of state-owned utility CFE and federal oil company Pemex while allowing limited private participation.

"This package of laws has the major dimensions of a historic transformation," González said during Sheinbaum's daily press conference. "The constitutional reforms and the legal reforms published [Tuesday] by the presidency rescue and relaunch the energy sector."

The legal package includes a new electricity law which requires CFE to maintain a share of at least 54% of the electricity that is injected into the national grid, González said.

In 2024, CFE injected 72% of electricity.

"This law also establishes orderly and transparent schemes for the participation of private companies, with mixed investment projects and long-term projects in electricity generation," González said.

Under the new legislation, private sector investors will be able to hold stakes of up to 46% in generation projects with CFE, among other forms of participating in the power generation market.

Likewise, González said, Mexico's new hydrocarbons law gives priority to Pemex when allocating areas for exploration and production but "also allows the participation of Pemex with private enterprise in mixed development projects."