Mexico Publishes Electricity Sector Law Regulations
Mexico's executive branch, through the Ministry of Energy (Secretaría de Energía or SENER), published in the Federal Register (Diario Oficial de la Federación or DOF) on Oct. 3, 2025, the Regulations of the Electric Sector Law (RLSE). The regulations aim to implement a new framework for the electric power industry under principles of governing strategic areas, strategic enterprises and organic simplification, following the order published in the DOF on Oct. 31, 2024.
Background
The RLSE reverts to the 2014 regulation, establishing the powers, authorities and liabilities of SENER, the National Energy Commission (Comisión Nacional de Energía or CNE) and the National Center for Energy Control (Centro Nacional de Control de Energía or CENACE). Likewise, it also confirms the Federal Electricity Commission (Comisión Federal de Electricidad or CFE) within the energy sector.
Key Considerations
Binding Planning and State Prevalence
Under Article 7 of the RLSE, all electricity projects should be incorporated into the Electric Sector Development Plan (Plan de Desarrollo del Sector Eléctrico or PLADESE), in accordance with the Planning and Energy Transition Law and its regulations. The PLADESE shall include forecasts for electricity demand, primary fuel prices and clean energy participation targets, ensuring consistency with other energy planning mechanisms.
The planning process should also assess for state, private and mixed-development projects; the development of the national gas pipeline network decarbonization mechanisms; technological innovation; energy justice; and the state’s prevalence in electricity generation (assessed annually, no later than March) considering electricity injected by CFE's power plants, those with state participation, and those owned by state or municipal entities.
To this end, SENER may designate strategic projects subject to streamlined administrative procedures to accelerate their execution (Article 13, RLSE). Furthermore, CFE should submit quarterly reports on transmission and distribution infrastructure to SENER, National Energy Commission (Comisión Nacional de Energía or CNE) and CENACE.
Generation and Self-Supply
The RLSE confirms that generators assume all risks associated with the construction and operation of power plants, except in cases of force majeure. It also recognizes distributed generation as an instrument of energy justice, enabling small-scale plants to promote system decentralization and diversification.
Regarding self-supply, the RLSE distinguishes two schemes: 1) isolated and 2) interconnected, both requiring a generation permit and compliance with administrative provisions issued by the CNE. Isolated self-supply projects with a capacity not exceeding 20 megawatts (MW) are exempt from filing the energy sector social impact statement, whereas in interconnected self-supply, surplus energy sales are limited exclusively to CFE.
Furthermore, a self-supply users registry is established for individuals or entities connected through private networks, which should be kept updated before the CNE.
Wholesale Electricity Market
Power plants participating in the wholesale electricity market (mercado eléctrico mayorista or MEM) are subject to the PLADESE and the interconnection capacities defined by CENACE. Their operation should comply with the Electric Sector Law, market rules and all applicable administrative provisions, ensuring security, efficiency and sustainability in system expansion.
The state, through CFE and other public entities, may develop generation and modernization projects under the principle of nonprevalence of private entities in generation and commercialization activities. CFE, as the basic services supplier, retains preferential rights to acquire power and associated products from state-developed plants.
Mixed Development and Investment
The RLSE permits joint participation between the state and private entities in power generation projects through mixed development and investment schemes. This participation is subject to binding planning principles, as well as the efficiency, reliability and sustainability of the National Electric System (Sistema Eléctrico Nacional or SEN). All such projects shall receive approval from the Board of Directors of CFE.
Under mixed investment schemes, CFE should hold at least 54 percent direct or indirect participation in the capital of the legal or financial vehicle, through cash, in-kind or intangible contributions, formalized within 180 business days from the start of commercial operations.
Energy Storage and System Reliability
Electric energy storage systems (Sistemas de Almacenamiento de Energía Eléctrica or SAE) may participate in generation, commercialization or transmission activities, strengthening the reliability, efficiency, and sustainability of the SEN. SAE connected to the national transmission grid or general distribution networks are considered part of CFE exclusive infrastructure and shall operate under CENACE's dispatch instructions.
All SAE participating in the MEM or not associated with a power plant require a storage permit granted by the CNE. Additionally, CENACE may enter into long-term agreements with SAE to enhance system reliability and operational security, prioritizing their use during emergencies or for renewable energy integration.
Electromobility
The RLSE incorporates electromobility as a strategic component of national electric infrastructure, defining electric charging as all installations from the connection point to the supply point of charging equipment. Charging centers for electromobility may register as controllable demand without being classified as SAE, under the rules issued jointly by the CNE and SENER.
The supply of electricity for electromobility is defined as the provision of power by a supplier to an end user for vehicle charging purposes. SENER may establish promotion and planning mechanisms for charging infrastructure, prioritizing public transport and the use of clean energy.
Final Comments
The RLSE took effect the day after its publication in the DOF, reverting the 2014 regulation and establishing a new state-centered operational framework. Previous provisions remain applicable only if they do not conflict with the new regulations.
The regulation establishes, among other items, a transition toward a new regulatory model in Mexico that includes: the update of the market rules, the migration of legacy permits, the publication of clean energy requirements for 2025-2028, the regulation of SAE (within 180 business days of the RLSE's entry into force, the corresponding general administrative provisions should be issued), and the issuance of calls for strategic and priority projects
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