MEXICO Trends and Developments Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
data centre developments requiring long-term supply certainty and price stability. The WEM itself remains in place and continues to include transactions involving electricity, capacity, ancillary services and associated products such as Clean Energy Certificates (CELs). However, its practi- cal operation has changed due to the economic load dispatch model, the State’s 54% prevalence require- ment and the central role of CFE in procurement and planning. Storage and electromobility The new legal framework includes specific provisions on power storage and electromobility, granting SEN- ER and the CNE authority to issue administrative and economic regulations. In April 2026, the CNE issued new General Administrative Provisions for electricity storage systems, replacing the transitional regulation previously issued by the former CRE. The new framework distinguishes between storage associated with renewable power plants, storage linked to load centres, storage for self-consumption projects, standalone storage and storage integrated into transmission or distribution infrastructure. Not all storage systems require a permit. Standalone storage, or storage participating independently in the WEM, is subject to a storage permit from the CNE, while storage associated with power plants, load centres or self-consumption projects may be exempt, subject to applicable conditions. Storage systems may participate in the WEM, be credited for capacity purposes, enter into bilateral agreements and execute electric hedging structures in certain cases. The framework also allows grouped storage schemes among generators and end users, expanding the role of storage in reliability, self-con- sumption and mixed participation projects. Clean energy obligations The LSE continues to recognise CELs as the primary tool to support Mexico’s energy transition. However, unlike the previous framework, CELs may now be awarded regardless of the ownership or commercial operation date of the relevant power plant, allowing legacy hydroelectric, nuclear and other pre-existing
State-owned generation assets to participate in the CEL market. SENER is responsible for setting annual CEL acquisi- tion requirements, while load-serving entities, quali- fied suppliers and certain self-consumption structures remain subject to CEL compliance obligations before the CNE. Under the LPTE, SENER will also establish criteria to certify clean energy producers and grant CELs, taking into account the actual level of emis- sions of each technology and permit holder, as well as the use of back-up and ancillary services from fossil- fuelled energy sources. The interaction between CEL obligations, the 54% State prevalence rule and the elimination of man- datory long-term auctions has changed investment incentives for renewable developers, who increasingly rely on qualified supply structures, bilateral PPAs, self- consumption schemes and mixed participation pro- jects with CFE. CFE The Law of CFE transforms CFE into a single, consoli- dated State public company. The former generation, distribution and basic supply subsidiaries were dis- solved, and CFE assumed their rights and obligations by operation of law, without requiring novation or re- execution of existing contracts. CFE now operates under a special legal regime gov- erning affiliates, procurement, assets, administrative responsibilities, budgetary and accounting treatment. Its activities are expressly excluded from being clas- sified as monopolistic practices, reflecting its consti- tutional role in strategic electricity activities and its status as the State entity responsible for public utility transmission, distribution and basic supply. CFE must perform transmission, distribution, market- ing and basic supply directly. For other activities, it may act directly or through affiliated entities, including mixed participation structures, long-term production projects and strategic infrastructure partnerships with private investors, provided State control and public utility ownership are preserved.
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