Mexico's Power Shift: Public-Private Energy Initiative Unveiled

The Mexican government, led by President Claudia Sheinbaum, proposes legislation allowing public-private electricity projects with a state share of at least 54%. The bill aims to ensure state-owned CFE supplies the majority of electricity, emphasizing sovereignty and reliability while pushing for de-carbonization and renewable energy transition.

In an effort to further solidify the role of the state in Mexico's energy sector, President Claudia Sheinbaum has thrown her support behind a legislative proposal allowing public-private electricity projects, provided the state retains a 54% stake.

This proposal is intended to affirm the Comision Federal de Electricidad's (CFE) dominance as the main electricity provider, continuing the policies of Sheinbaum's predecessor, Andres Manuel Lopez Obrador, who emphasized state control over energy resources.

While the bill mandates state control, it also advocates for an energy system transition towards renewable sources, requiring private generators to offer surplus power only to the CFE, thus supporting de-carbonization.

(With inputs from agencies.)