New Electricity Law in Mexico

The new electricity law in Mexico reflects the current public policy, promoting energy security and self-sufficiency, favoring CFE over private investment.


New Electricity Law in Mexico

The anticipated moment of the promulgation of the new electricity law is approaching, which is excellent news as it provides a legal framework that reflects the public policy of the current regime regarding electricity. This new regulation represents a significant ideological shift, focused on the security and energy self-sufficiency of the country, with an emphasis on ensuring access to energy from a perspective of justice and combating energy poverty.

In this new orientation, the role of the Federal Electricity Commission (CFE) in providing electricity to the people at the lowest possible cost is highlighted, avoiding profit motives and ensuring a basic supply as the sole basic provider. The law reaffirms CFE's preference over private investment in electricity generation and marketing activities.

A relevant aspect is the definition of economic load dispatch as a process for efficiently managing generation, controllable demand, and storage to meet demand, minimizing costs and ensuring reliability and operational security. This seems to address previous concerns about a permanent priority dispatch of CFE and ensures the independence of the National Center for Energy Control (CENACE).

The increase in the threshold for generating electricity without the need for a permit is also emphasized, as well as the prioritization of renewable sources in capacity projects between 700 kW and 20 MW. On the other hand, the need for advanced technology to expand transmission and distribution networks and meet energy security standards is raised.

Among the criticized points is the elimination of open and non-discriminatory access to electricity services, replaced by a feasibility-based approach. Additionally, energy storage is defined as an activity subject to permission from the Ministry of Energy, opening possibilities for its integration into various electrical systems.

In conclusion, the new electricity law represents an important step in establishing clear rules and providing legal certainty in the sector, reflecting government policy in energy matters and directing the electricity landscape towards the self-sufficiency and energy security of the country.