Mexico's Power Play: Public-Private Electricity Generation

The Mexican government is backing a legislative proposal allowing public-private electricity generation projects, provided the state has a 54% stake. Supported by President Claudia Sheinbaum, the bill aligns with former President Lopez Obrador's vision, emphasizing state dominance in electricity supply for national sovereignty.

The Mexican government is set to unveil a legislative proposal allowing public-private partnerships in electricity generation. However, the state must hold a majority stake of at least 54%, according to a draft obtained by Reuters.

Backed by President Claudia Sheinbaum, the initiative is part of the implementing legislation connected to energy reforms passed last year by the ruling party. It mandates that the state-owned utility, Comision Federal de Electricidad (CFE), supply at least 54% of the national grid's electricity.

This move continues the policy direction advocated by Sheinbaum's predecessor, former President Andres Manuel Lopez Obrador, promoting the idea that national sovereignty depends on CFE being the primary force in the power sector.

(With inputs from agencies.)