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October 7, 2025
On October 3, 2025, President Claudia Sheinbaum published in the Federal Official Gazette five new decrees enacting regulations for Mexico’s energy sector: (i) Electric Sector Law Regulation, (ii) Planning and Energy Transition Law Regulation, (iii) Hydrocarbons Sector Law Regulation, (iv) Geothermal Law Regulation, and (v) Biofuels Law Regulation (collectively, the “Regulations”), all of which entered into force on October 4, 2025.
Below are the key points of the Regulations:
Electric Sector Law Regulations.
- Repeals regulations of the electricity industry law.
- Mixed-investment projects: CFE and private developers may jointly develop plants, with Federal Electricity Commission (“CFE”) holding at least 54% participation (direct or indirect), credited through monetary contributions, trusts or SPVs.
- Autoconsumption: Projects may be isolated or interconnected. Isolated projects up to 20 megawatts are exempt from social-impact authorization.
- Long-term production: Privately financed plants must supply all energy exclusively to CFE. Excess capacity cannot be sold to third parties.
- Wholesale Electricity Market (“WEM”) generation projects: Must comply with binding planning criteria. Permits and interconnection studies must be completed before construction.
- Mixed-development projects: Private participants must be Mexican-domiciled individuals, entities or trusts. Project term is limited to 30 years.
- Cogeneration: May operate under distributed generation, autoconsumption or WEM generation. Limited to exploitable capacity of residual thermal energy.
- Transmission and Distribution (“T&D”): Third-party financing is allowed if assets remain State-owned.
- Energy-storage systems: Require National Energy Commission (“CNE”) permit or Ministry of Energy (“SENER”) authorization unless integrated into State-owned T&D. Storage above 0.7 megawatts not integrated into a plant requires separate permit.
- Permit timelines: Applications must be resolved within 60 business days.
Key transitional provisions:
- Existing contracts with CFE under previous regulations remain in force until expiration.
- Permit holders who applied before March 18, 2025, to modify generation permits for storage or capacity, and those applying after the electric sector law regulations take effect, may be recognized if permit migration procedure is completed.
- Pending applications filed before the electric sector law regulations, are resolved under rules in effect at the time of filing.
- SENER must issue guidelines within 120 days for expedited migration of self-supply, cogeneration, small production, independent production, import, export and continuous self-use permits.
- Generation and supply permits filed with the Energy Regulatory Commission (“CRE”) before March 18, 2025, and ratified with CNE must migrate to electric sector law.
- Pending supply and generation permit applications filed until March 18, 2025, under former CRE, must be resolved under electric sector law.
Planning and Energy Transition Law Regulations.
- Repeals regulations of the energy transition law.
- Planning Instruments: Define national energy policy with short-term (6 years), medium-term (15 years) and long-term (30+ years) horizons.
- Energy Sector Program (“PROSENER”): Implements short-term planning including funding, legal basis, objectives, strategies, actions and indicators.
- National Energy Transition Strategy: Medium and long-term energy transition policy, clean energy, efficiency, energy justice and innovation.
- Energy Transition and Sustainable Energy Use Plan (“PLATEASE”): Medium-term plan aligned with national development plan setting legal framework, sector diagnostics, targets, scenarios and renewable energy programs.
- Hydrocarbons Sector Development Plan (“PLADESHi”): Medium-term hydrocarbons plan, aligned with national development plan, setting regulatory framework, sector diagnostics and project portfolios open to private investment.
Key transitional provisions:
- SENER must enable national energy information system within 180 business days.
- Within 180 business days, SENER must issue one-time Clean Energy Certificates (“CEL”) compliance rules for 2025–2028.
Hydrocarbons Sector Law Regulations.
- Repeals regulations of the hydrocarbons law and CNH.E.60.006/2020 supervisory guidelines.
- SENER must decide on recognition and surface exploration authorizations within 25 business days.
- SENER deadlines for granting or modifying assignments (counted from application admission):
- 60 business days for development assignments.
- 60 business days for substitution of own assignment with mixed-development assignment.
- 90 business days for mixed-development assignments.
- Tender participants may use affiliates or consortium partners to meet pre-qualification.
- Multiple contracts may be awarded in each tender round covering one or more areas.
- National content obligations: Minimum 1% during exploration and evaluation, 3% during extraction for training, technology transfer and infrastructure.
- Permit holders and importers must ensure measurement, quality, traceability and lawful origin of hydrocarbons, petroleum products and petrochemicals.
Key transitional provisions:
- Pending applications resolved under rules at filing.
- CRE-issued permits expiring within 1 year must be renewed within 90 calendar days unless otherwise specified.
- Existing permits for petroleum, natural gas, petroleum products, petrochemicals and integrated operations remain valid but must comply with new regulations.
- Commercialization permit holders must update information within 60 business days.
- SENER and Ministry of Finance and Public Credit (“SHCP”) may allow substitution of exploration and production contracts by assignments to benefit the State, increase petroleum rent or strengthen State-owned enterprise.
Geothermal Law Regulations.
- Repeals regulations of the geothermal energy law.
- CFE annually defines geothermal electricity projects.
- Private investment promoted via collaboration.
- Exploration permits with drilling/infrastructure require social-impact authorization.
- Geothermal water use requires National Water Commission (“CONAGUA”) water concessions.
- Rights may be assigned after 3 years if obligations are met.
- Permits for diverse uses have a 15-year term and cover up to 300,000 m².
- Exempt activities require prior notice including location and expected benefits.
Key transitional provisions:
- Previous rules remain until replaced.
- Existing permits/concessions continue.Pending requests follow geothermal law.
- Ministry publishes planning provisions within 60 business days.
- Prior formats remain valid.
Biofuels Law Regulations.
- Repeals regulations of the law on the promotion and development of bioenergetics.
- Permits cover production, storage, transport, commercialization, retail and import/export of biofuels with required safety, quality, traceability and regulatory compliance.
- Permits are valid for 10 years.
Key transitional provisions:
- SENER, Ministry of Environment and Natural Resources (“SEMARNAT”) and Ministry of Agriculture and Rural Development (“SADER”) to issue implementing rules.
- Previous regulations remain valid if not inconsistent.
- Exempt biofuel permit holders have 365 days from publication to request production or utilization authorization or corresponding production permit from SENER.
- Permits under the previous bioenergy law require a notice of commencement of operations within 365 days.
The attorneys in our energy and infrastructure practice are available for any questions or comments regarding this matter.
| Juan Carlos Serra serra@basham.com.mx | |
| Pablo Nosti Herrera pnosti@basham.com.mx | Pamela Salas García psalas@basham.com.mx |
| Iván Sánchez López isanchez@basham.com.mx | Paola Arcos Seoane parcos@basham.com.mx |