Mexican President Claudia Sheinbaum has presented a set of energy reform proposals to the Joint Committee on Energy and Legislative Studies of both the Senate and the Chamber of Deputies
Aimed at bolstering the nation’s energy and electricity sectors, the initiative introduces new legislation and amends existing laws governing geothermal energy, biofuels, hydrocarbons, and the National Energy Commission.
An official communication from the Federal Executive Branch confirming these reforms was published in the 5 February 2025 edition of the Official Gazette of the Senate of the Republic of Mexico.
Streamlining geothermal regulations
The proposed Geothermal Law seeks to modernize Mexico’s regulatory framework for geothermal resource utilisation. A key objective is to simplify regulations, particularly concerning project registration and the issuance of exploration permits. Additionally, the law acknowledges various applications of geothermal energy, including urban heating, agricultural and industrial drying, aquaculture, and food preservation.
Key provisions in the Geothermal Law include defining geothermal resources, outlining the process for obtaining exploration permits, specifying permit terms, detailing concession rights, and setting reporting obligations for permit holders. The law also introduces a “Various Uses” permit, allowing geothermal applications beyond electricity generation.
Restructuring energy agencies
The reform proposal also includes an overhaul of regulatory agencies, integrating the Federal Electricity Commission (CFE) and Petróleos Mexicanos (PEMEX) into a unified structure. It also dissolves the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH), transferring their responsibilities to the Ministry of Energy. This restructuring is intended to enhance regulatory efficiency and strengthen energy planning.
The CFE has historically led Mexico’s geothermal energy development, managing key geothermal power plants such as Cerro Prieto, Los Azufres, and Los Humeros.