On October 4, 2025, the new regulations that develop and clarify various relevant aspects for the functioning and operation of the Mexican electric sector came into force. Among them are the Regulation of the Electric Sector Law, the Regulation of the Geothermal Energy Law, and the Regulation of the Energy Planning and Transition Law.
On October 4, 2025, the new regulations that develop and clarify various relevant aspects for the functioning and operation of the Mexican electric sector came into force, namely: (i) the Regulation of the Electric Sector Law (“LSE Regulation”); (ii) the Regulation of the Geothermal Energy Law (“LG Regulation”); and (iv) the Regulation of the Energy Planning and Transition Law (“RLPTE”), (collectively, the “Regulations”). Below, we provide a summary and executive analysis of the Regulations concerning the electric energy sector, highlighting the most relevant points:
A. LSE Regulation
The LSE Regulation aims to further develop the provisions of the Electric Sector Law (“LSE”) regarding the establishment of a new comprehensive regulatory framework applicable to all activities within the national electric sector, including the organization, planning, control, and supervision of activities related to the generation, transmission, distribution, storage, commercialization, and consumption of electric energy in Mexico, consolidating the transition to a centralized planning model under state control. The most relevant modifications introduced by the LSE Regulation are detailed below:
• Development of Terms and Definitions. The LSE Regulation expands and develops various concepts provided in the LSE, clarifying figures, scopes, and obligations that are fundamental for the operation of the new regulatory framework. Among the main concepts are the following:
◦ “Storage Entity” Figure. The LSE Regulation develops this figure provided in the LSE, which can operate energy storage systems not associated with a power plant or load center and may even participate in import and export activities. In doing so, the regulation expands on the provisions of the LSE by recognizing storage as an independent activity within the electric sector, subject to a specific permit issued by the National Energy Commission (“CNE”). This inclusion represents the opening of a new line of regulated business and a tool for flexibility within the national electric system.
◦ Contribution Regime. The LSE Regulation specifies the provisions of the LSE regarding the financing of connection and interconnection infrastructure, determining that developers or applicants must cover these costs when they are not recoverable through regulated tariffs. This provision expressly shifts the financial risk to the investor, making the cost and feasibility of specific works determining factors from the initial planning stage of each project.
◦ Definition of State Generation. The LSE Regulation clarifies and expands on the provisions of the LSE regarding the State’s Prevalence in electricity generation by defining the concepts of State-Injected Electricity Generation and Total Injected Electricity Generation. Specifically, the scope of state accounting is extended to include not only generation by the Federal Electricity Commission (“CFE”) but also that from plants with public or local government participation.
◦ Strategic Projects. The LSE Regulation develops the authority provided in the LSE for the Ministry of Energy (“SENER”) to determine which projects will be considered strategic based on their relevance to the security, reliability, or sovereignty of the system.
◦ Technology Transfer and National Content. The concept of Technology Transfer is developed as a mandatory component of the calculation of National Content for awarding contracts in public tenders. Its verification will fall under the Ministry of Economy. This aims to ensure that companies participating in the sector not only contribute capital or infrastructure but also actively strengthen the country’s technological capabilities.
• Guiding Principles. The principles provided in the LSE are further developed, positioning Energy Justice as the guiding axis of the entire national electric policy. Additionally, the LSE Regulation reinforces state control and binding planning by requiring SENER to annually calculate the proportion of state electricity generation and identify additional capacity needs.
• Competent Authorities and Their Powers. The LSE Regulation expands and defines the powers provided in the LSE, concentrating the direction of sector policy and planning within SENER and assigning the National Energy Commission (CNE) the regulation and granting of permits for generation, commercialization, and storage. The regulation establishes that the CNE must act in coordination with and under the direct supervision of SENER, particularly regarding tariffs, planning, and strategic projects, thereby ensuring that the Ministry not only formulates energy policy but also controls its execution.
• Planning and Control of the National Electric System. The provisions of the LSE regarding planning are developed and expanded, replacing the indicative scheme of the PRODESEN with a binding Electric Sector Development Plan. With this, the LSE Regulation transforms planning into a normative obligation, establishing that every new power plant or electric project must strictly align with the objectives, zones, and technologies defined by the State. Furthermore, the RLSE reaffirms public policy criteria in planning, prioritizing the use of national resources, technology transfer, and the promotion of energy justice as decision-making axes. SENER assumes the direction of this planning and can designate Strategic Projects to accelerate the development of priority infrastructure, while CENACE coordinates with CFE in the preparation of expansion programs, thereby strengthening the c
