April 8, 2025

Mexico’s New Energy Sector Laws

Luiz Aboim, Jennifer Huang, Marco Portillo Diaz, Gabriela Sakamoto, Gabriel Salinas, Gustavo Scheffer da Silveira, David Weiss

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[author: Juan Pablo Tablada Flores]

On 18 March 2025, Mexico published a comprehensive package of new energy laws, fundamentally reshaping the country’s energy sector. Mayer Brown is well-placed to assist clients with projects in Mexico, as we have a deep understanding of these new regulatory changes and their impact. Below is a reference guide comparing the new applicable laws, the repealed laws, and their expected impact.

These new laws establish a new regulatory framework reinforcing the State’s central role in energy planning and control, which will have an impact on private-sector participation in electricity generation, hydrocarbon projects upstream, midstream and downstream, and associated infrastructure development. These laws came into force on 19 March:

Subject Matter	New Law	Repealed Law	Main Impacts
Energy Transition	Energy Planning and Transition Law (Ley de Planeación y Transición Energética)	Energy Transition Law (Ley de Transición Energética)	Enhanced state-led energy planning, increased oversight on clean energy targets and policies.
Power	Electric Sector Law (Ley del Sector Eléctrico)	Electricity Industry Law (Ley de la Industria Eléctrica)	Establishes the Federal Electricity Commission’s priority over the private sector, securing at least 54% of electricity generation.
State Utility	Public State Company Law – CFE (Ley de la Empresa Pública del Estado, CFE)	CFE Law (Federal Electricity Commission Law) (Ley de la Comisión Federal de Electricidad)	Centralisation of the Federal Electricity Commission, removal of subsidiaries, increased vertical integration.
Hydrocarbons	Hydrocarbons Sector Law (Ley del Sector Hidrocarburos)	Hydrocarbons Law (Ley de Hidrocarburos)	Priority of PEMEX in oil and gas activities; centralisation of and increased control over the sector.
National Oil Company	Public State Company Law – PEMEX (Ley de la Empresa Pública del Estado, PEMEX)	PEMEX Law (Ley de Petróleos Mexicanos)	Reinforces PEMEX's dominance in the market; provides exclusive rights and priority in hydrocarbons activities.
Energy Regulator	National Energy Commission Law (Ley de la Comisión Nacional de Energía)	Coordinated Regulatory Bodies Law (Ley de los Órganos Reguladores Coordinados en Materia Energética)	Consolidation and centralisation of regulatory oversight of the energy sector under the National Energy Commission, which is now part of the Ministry of Energy.
Biofuels	Biofuels Law (Ley de Biocombustibles)	Biofuels Law (previously included within broader laws)	Specific regulatory framework and state-driven promotion for the production and use of biofuels.
Geothermal Energy	Geothermal Power Law (Ley de Geotermia)	Electricity Industry Law (Ley de la Industria Eléctrica)	Dedicated legal framework to regulate geothermal resources development.

Given the far-reaching consequences of these reforms, stakeholders should carry out a thorough legal, financial, and operational assessment of its potential impact. Mitigating potential risks and safeguarding investors’ rights must remain a top priority, achieved through tailored strategies such as comprehensive due diligence, contractual revisions, and, where necessary, international arbitration.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.