Currents Ep325: New Rules for Private Power in Mexico
Nov 20, 2025
Raquel Bierzwinsky, a partner at Norton Rose Fulbright specializing in the Mexican power sector, shares her insights on new reforms transforming Mexico's electricity market. She discusses the 2014 reforms that opened the market, the impact of the AMLO administration, and how nearshoring demands are reshaping power needs. Raquel highlights key regulations allowing private investment, including the 54% government interest rule and mixed development opportunities. With a bullish outlook on investment potential, she emphasizes attractive industrial power solutions and battery storage prospects.
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From 2014 Boom To Six-Year Freeze
- Mexico's 2014 power reform opened the sector and triggered heavy private investment through markets and auctions.
- The 2019 AMLO administration paused permits and froze development, creating six years of near-stagnation in the sector.
New Government, New Path For Private Power
- The 2024 election brought Claudia Sheinbaum and a policy shift permitting renewed private involvement despite her party ties to AMLO.
- New laws preserve private project development and the wholesale market while imposing new rules and planning requirements.
Binding Central Planning Replaces Free Siting
- Power project development must now follow binding national planning issued annually and covering generation and transmission.
- Developers can no longer site projects purely on market node economics or resource availability.