AMLO’S Constitutional Energy Reform: A 180° direction change for Mexico’s power sector

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On 30 September, Mexico’s President sent a new constitutional reform to the House of Congress proposing changes that take the initiative from early 2021 even further, posing additional risks and challenges for private participants already operating in the country and significantly increasing uncertainty in the sector. The motivations for the reform continue to be highly linked to a nationalist platform that has put the Federal Commission of Electricity (CFE) at the centre of this administration’s energy strategy. The possibility of the reform being approved is low; however, the severity of the intended modifications will continue to affect private investors' confidence in the country in the near and middle term. This insight analyses the proposal’s main points and provides our view on their potential implications on the market and renewable investments. This insight is a collaboration between Wood Mackenzie and Maplecroft.

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    AMLO’S Constitutional Energy Reform_PR.pdf

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