Mexico plans to end energy liberalization

Claudia Sheinbaum, Mexico's new president, is preparing a constitutional reform to dismantle the 2013 energy liberalization. His congressional alliance won a supermajority, paving the way for radical change.

Share:

Réformes constitutionnelles énergétiques Mexique

Energy liberalization in 2013 aimed to open up the Mexican energy market to international competition and stimulate private investment. It introduced major reforms, including competitive bidding for oil and gas exploration, and redefined the role of state-owned companies such as CFE (Comisión Federal de Electricidad) and Pemex (Petróleos Mexicanos).

Goals and prospects for the industry under Sheinbaum

Claudia Sheinbaum, elected on June 2, 2024 with an overwhelming majority in Congress, has the unique opportunity to amend the constitution. She has often stated her intention to continue the policies of her predecessor, Andrés Manuel López Obrador, who failed to fully dismantle energy liberalization. Observers are divided on the extent of the changes to come. Some expect far-reaching reforms that would weaken judicial checks and balances, making government decisions easier. Others believe that Sheinbaum will seek to reassure investors by maintaining a stable legal framework.

Impact on Independent Regulators

One of the proposed constitutional changes includes the abolition of independent regulatory bodies such as CNH (Comisión Nacional de Hidrocarburos) and CRE (Comisión Reguladora de Energía). These bodies are considered essential for transparency and competition in the energy market. Critics argue that removing independent regulators could increase corruption and reduce transparency. However, proponents of the reforms argue that this would lead to more consistent governance and a reduction in administrative costs.

Towards a step backwards?

Players in the energy sector are concerned about regulatory uncertainty. In his first speech, Sheinbaum sought to reassure by affirming his commitment to respecting private enterprise and promoting national and international investment. However, his plans to reintegrate the CFE to eliminate inefficiencies are worrying some industry experts. Sheinbaum seems determined to reverse the 2013 reforms. This includes reintegrating CFE vertically and changing its status to focus on national interests rather than profits. Analysts believe that these changes could have mixed effects on the Mexican energy sector.

An Uncertain Future

The next few months will be crucial in determining the scope and impact of these reforms. The industry and investors will be keeping a close eye on developments, hoping that the changes will not hamper market competitiveness and transparency.
Sheinbaum’s proposed reforms could redefine Mexico’s energy landscape for years to come. The stakes are high, and the decisions taken will have a profound impact on the country’s energy economy and industry.

US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.