The new strike on Mexico’s energy sector: AMLO’s reform initiative to the Electricity Industry Law
On 1 February 2021, President Andres Manuel López Obrador issued an initiative with preferential processing to modify the Electricity Industry Law (LIE) created with the energy reform. This modification goes a step beyond the SENER’s reliability policy issued in 2020, risking self-supply and auctioned projects, Independent Power Producers, and Clean Energy Certificates (CELs). Although the Nation’s Supreme Court of Justice invalidated key provisions from last year’s policy, the President intends to have the amendments approved by Congress, allowing him to continue with his purpose of strengthening the national utility and securing a 54% (or higher) market share. However, this would lead to a new wave of national and international legal procedures. This insight analyses the proposal’s main points and provides our view on their potential implications on the market and renewable investments.