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In the first of a set of constitutional reforms proposed by Mexican President Andrés Manuel López Obrador (AMLO), Mexico’s upcoming electricity reform will see the state-owned Federal Electricity Commission (CFE) collaborate with the country’s private sector on power plants, though the CFE will ultimately own the majority of projects.

Within the proposal, the private sector is encouraged to participate with the CFE in the investment, financing, operation and development of power plants across the country, with the CFE owning 54 percent of each plant.

In order to do so, the CFE has committed some 269.18 billion pesos to pay private electric companies until the end of AMLO’s six-year term in 2024.

The Secretariat of Energy (Sener), in its Program for the Development of the National Electricity System from 2021 to 2035, confirmed the collaborations as a part of the need for the government to recover “the generation and transmission capacity of the CFE, so that the company can generate and support the National Electric System (SEN).”

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