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Mexican energy reform: Critical changes on the way

Mexican energy reform: Critical changes on the way

What is the state of Mexico's electricity system? What will happen with growing energy demand? Will the government be able to carry out its monumental works program that seeks to double electricity generation in 13 years? Is the current state generation system, which serves 97% of the population, wearing thin? How will proposed energy reform in the power sector change the Mexican electricity landscape? This report aims to tackle these questions, using the opinions of industry experts, and analyzing official data to paint a picture of the current state of electric power in Mexico, and where it is headed.


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Private companies start generating
Since amendments to the law made in 1992, the energy of the national electricity system in Mexico has been supplied by the public sector and private companies with permission. According to the CFE, private companies currently contribute 23.19% of the total installed capacity in the public service, which in June 2013 amounted to 52,863 MW in all of Mexico.

Energy reform in sight
According to numerous specialists, Mexico desperately needs reform of both its electricity and hydrocarbon systems in order to be able to meet the energy demand projected between now and 2026. Thanks to a pact between the major political parties, a proposed reform may finally be presented in September.

Privatization of Pemex?
The transformation and modernization of the energy sector as a whole, especially in hydrocarbons, is being promoted by the government in order to meet the economic growth target of 6% per year. Although it has not mentioned privatizing Pemex, it is expected to support strategic alliances to obtain deepwater resources and complement exploration of new fields.

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