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Mexico Reforms: A Revamped Power Market Prepares to Launch

Mexico Reforms: A Revamped Power Market Prepares to Launch

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The passage of Mexico's energy reform just before Christmas in 2013 was historic on many accounts. For the first time in decades the country's energy sector, long a symbol of national sovereignty, would fully open up to private and foreign investment. Moreover, the reform marked a milestone for Latin American power markets. Mexico is the last major market to deregulate and unbundle, a process that started with Chile in the 1980s and carried on throughout the rest of the region over the next two decades. Since the last Intelligence Series report on Mexico, the rules and regulations of the new market have become clearer. In August 2014, the Mexican congress passed a batch of secondary laws to flesh out the reform, including a new electric industry law. Earlier this year, the energy ministry published draft rules for the wholesale market, which is expected to launch by year's end. Not all of the pieces are in place, including a final piece of secondary legislation that is stuck in congress. As the rules are tweaked and finalized, the power industry has remained in wait-and-see mode, but the market inches closer and closer to its first commercial launch.

Recent Electric Power Intelligence Series

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