Mexico's electric power sector has undergone a significant transformation in recent decades, marked by regulatory reforms, market structure changes, the rise of nearshoring and growing attention to sustainability and energy transition. As a key pillar of the country’s economic and social development, the sector has faced ongoing challenges—from the 2013–2014 reforms that opened the market to private investment to the more recent changes of 2024–2025, which aim to balance public and private participation while ensuring energy security and a transition to cleaner sources.
Prodensa created this overview with the most recent updates of the energy sector to provide valuable insights for executives interested in Doing Business in Mexico.
In October 2024, a constitutional reform was approved modifying Articles 25, 27, and 28 of the Mexican Constitution, with the aim of strengthening the role of the State in the electric sector. This reform established electricity as a human right and a non-delegable responsibility of the State, granting CFE a predominant role in the generation, transmission, and distribution of energy.
In March 2025, five new secondary laws were published defining the regulatory framework for the electric sector. Among them is the creation of the National Energy Commission (CNE), which absorbs the functions of the now-defunct Energy Regulatory Commission (CRE). The CNE will be responsible for issuing generation and commercialization permits, setting tariffs, and overseeing the Wholesale Electricity Market.
President Claudia Sheinbaum announces the creation of Mexico's new National Energy Commission (CNE), a key reform to consolidate energy regulation under a single body by merging CRE and CNH. The new commission aims to streamline oversight of hydrocarbons and electricity markets, enhancing transparency and efficiency in the sector.
Mexico has an installed generation capacity of 94,781 MW, distributed as follows:
While combined-cycle power still dominates the energy matrix, renewable energy has gained ground in recent years, driven by international commitments like the Paris Agreement.
As of 2024, total electricity generation reached 334 TWh, with the following distribution:
This scenario reflects significant private sector participation in power generation, although CFE remains the main player.
The 2024–2030 National Energy Plan represents a comprehensive strategy to modernize and expand Mexico’s energy infrastructure to ensure reliable, secure, and accessible electricity for all sectors of society. This effort also supports broader goals for Doing Business in Mexico, particularly for companies that depend on stable infrastructure and predictable energy costs. The plan includes a projected investment of 22,574 MW between 2025 and 2030, with participation from both public and private sectors.
The plan is structured around four core pillars:
CFE will play a central role in executing the plan, with a total investment of $23.4 billion USD during 2025–2030, this also aligns with Turnkey Operation models designed to streamline infrastructure development for incoming manufacturers:
The plan also foresees private sector participation in energy generation, with projections between 6,400 and 9,550 MW of new capacity by 2030, requiring $6B to $9B USD in investment. Requirements for private participants include:
Under the National Energy Plan, the following private supply modes are defined:
The plan addresses the energy transition goal of reducing fossil fuel dependence and increasing renewables in the energy mix. CFE presented four planning scenarios for 2025–2030, projecting peak demand of 64,000 MW by 2030 (compared to 55,600 MW in 2024):
Mexico’s economic growth in recent decades has been accompanied by sustained increases in electricity demand, driven by industrial expansion and urban development.
Electricity Demand by Sector:
Recent constitutional reforms have redefined electricity as a human right and reaffirmed the central role of the Federal Electricity Commission (CFE).
The National Energy Commission (CNE) replaced the former Energy Regulatory Commission (CRE), assuming key responsibilities in regulation and oversight.
Mexico's electricity mix is led by combined-cycle plants, with growing contributions from renewables like solar and wind.
The 2024–2030 National Energy Plan outlines $23.4B in public investments and encourages private sector participation under clearer rules.
Opportunities exist for private companies through long-term contracts, joint ventures, and distributed generation models.
Electricity demand continues to grow, particularly in the industrial and residential sectors, reinforcing the need for sustainable expansion.
For businesses Doing Business in Mexico, staying informed and prepared for regulatory shifts is essential for strategic planning and decision-making.
In a global context, trade relations and international commitments play a crucial role. That’s why it’s important to approach these topics from a neutral and objective standpoint, focusing on the implications and opportunities for both industry and country.
With this vision, Prodensa is a key player in the development and growth of Mexico’s energy sector, actively contributing to dialogue and collaboration between the private sector and government authorities.