MEXICO Trends and Developments Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
CFE – mixed participation projects One of the most significant practical developments resulting from the reform is the consolidation of mixed participation schemes between CFE and private investors for the development of generation projects and strategic infrastructure. Private participation is now expected to occur primar- ily through structures that preserve the constitutional predominance of the State and align with SENER’s binding planning criteria under PLADESE. The LSE and RLSE recognise two main structures: • Long-Term Production (LTP), where the private party finances, develops and operates the project while CFE acts as the exclusive purchaser of the electricity produced; and • Mixed Investment (MI), where CFE participates directly or indirectly in the project company through equity, asset contributions or other strategic par- ticipation mechanisms. In January 2026, CFE issued Guidelines on Mixed Development Schemes, creating the Mixed Devel- opment Group (MDG), responsible for the technical, financial, environmental, social and legal structuring of projects, including determining whether a project should be developed under LTP or MI and submitting it for approval by CFE’s Board of Directors. Private partners are generally selected through public tenders, although restricted invitations and direct awards are permitted in specific cases. The applicable contracts must include standard project finance provisions, and the guidelines expressly allow expert determination and arbitration. The CNE and regulated activities The CNE replaces and absorbs the former CRE, now functioning as a public instrumentality of SENER. The CNE oversees administrative and economic regula- tion of the power sector, including rates across the electricity value chain and the granting, amendment, supervision and potential revocation of permits for generation, storage, marketing and supply activities. SENER retains authority over import and export per- mits, Social Impact Authorisations (MISSE), binding planning and strategic project designation through
PLADESE and the RLSE. The LSE also grants SEN- ER broad intervention powers, including the ability to assume control of sector participants or mandate accounting, operational or functional separation. If such measures are insufficient, SENER may order divestitures to ensure compliance with sector regula- tion. Land use, social impact and energy planning Electricity industry activities are generally deemed to be of public utility, enabling the government to exercise expropriation and eminent domain in certain cases, particularly for strategic transmission, distribution and infrastructure projects incorporated into PLADESE or designated as strategic projects by SENER. Generation projects remain subject to MISSE before SENER, although isolated self-consumption projects may be exempt under the RLSE. Projects located on lands inhabited or claimed by indigenous communi- ties may also trigger prior consultation obligations, which remain critical for timing, bankability and long- term stability. The LPTE establishes several planning instruments, including the National Energy Transition Strategy, PLADESE, the Hydrocarbons Sector Development Plan and the Plan for Energy Transition and Sustainable Use of Energy. Among these, PLADESE has become the central binding instrument for the electricity sector, issued annually by SENER with a 15-year outlook and three-to-five-year investment programmes for genera- tion, transmission and distribution infrastructure. Legacy projects and migration Permits and agreements issued under the former legal framework remain in force under their current terms, including the Law of the Public Service of Electric Energy, repealed in 2014, and the Electricity Industry Law, repealed in 2025. However, the new regime pro- vides several pathways for legacy projects to migrate to the LSE framework. In April 2026, SENER published rules for migrating independent power producer (IPP) projects into new regulatory schemes, including:
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