What Will Become of AMLO’s Power Sector Reforms?
Mexico’s Supreme Court on Jan. 31 struck down provisions of President Andrés Manuel López Obrador’s landmark 2021 power sector reform. The high court sided with companies that had sought an injunction against the law, arguing that its favoring of state-owned power company, Comisión Federal de Electricidad, or CFE, over private power companies violated constitutionally protected principles of free competition. What are the implications of the ruling for the CFE and for private power providers, including ones that generate renewable energy? What does the high court’s action mean for the trade dispute that the United States launched against Mexico in 2022 over the reforms? How will the ruling affect Mexico’s electricity consumers?
Larry B. Pascal and Carlos Alva, members of the International Practice Group at Haynes and Boone: “The Mexican Supreme Court decision brought a rebalancing of interests to the Mexican power sector by striking down aspects of the 2021 energy reform designed to favor CFE and the fossil fuel energies it predominantly relies upon. The decision is a positive development for private renewable power generators and may prompt them to reconsider investing in Mexico, thereby advancing Mexico’s energy transition goals and its Paris Agreement commitments. With respect to the related disputes between the United States and Mexico, the decision provides more clarity for foreign investors. For the U.S. government, the court decision may enable it to…”Read More
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A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at email@example.com.
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Carl David Goette-Luciak