Mexico's Bold Move: Balancing Power in Electricity Generation

A legislative proposal in Mexico would permit public-private electricity projects, with the state maintaining a minimum 54% stake. President Claudia Sheinbaum backs the measure, which is part of energy reform legislation implemented last year by the ruling party.

In a significant development for Mexico's energy landscape, a new legislative proposal set to be unveiled would open up opportunities for public-private electricity generation projects. However, the state must maintain a controlling stake of at least 54% in these ventures, according to a draft of the bill seen by Reuters on Tuesday.

The proposal, which has received backing from President Claudia Sheinbaum, marks a critical step in continuing the energy reform policies passed by the ruling party last year. As an influential figure within the leftist government, Sheinbaum's support underscores the administration's commitment to reshaping the power sector while ensuring significant state control.

This legislative initiative promises to redefine the dynamics of energy production in Mexico, serving as a catalyst for increased investment while safeguarding public interest through strategic public-private partnerships that could enhance infrastructure and service delivery in the energy domain.

(With inputs from agencies.)