Inauguration of President Claudia Sheinbaum in Mexico City, Mexico

Newly elected Mexican President Claudia Sheinbaum has submitted a series of energy reform initiatives to the Joint Committee on Energy and Legislative Studies of the Senate and the Chamber of Deputies. Seeking to strengthen the country’s energy and electricity sector, the proposal seeks to introduce new laws and amend laws including those on geothermal, biofuels, the hydrocarbon sector, and the National Energy Commission.

The official letter issued by the Federal Executive Branch has been published in the 5 February 2025 edition of the Official Gazette of the Senate of the Republic of Mexico.

Simplifying geothermal regulation

The new Geothermal Law seeks to update the regulatory framework for the use of the Mexico’s geothermal resources. It also aims to simplify regulation, particularly as pertaining to the registry of projects and the issuance of exploration permits. The law also recognized the divers uses of geothermal resources in urban heating, drying of agricultural and industrial products, aquaculture, and food preservation.

Among the provisions of the Geothermal Law are the definition of geothermal resources, the process for application for a geothermal exploration permit, the terms of said permit, the process of granting concession rights, and reporting requirements for permit holders. The law introduces a “Various Uses” permit that pertain to the use of geothermal for applications other than electricity generation.

Restructuring of agencies

Part of the energy reform proposal is an integrated structure for the Federal Electricity Commission (CFE) and Petroloes Mexicanos (PEMEX). It also eliminates the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH), transferring their functions instead to the Ministry of Energy. These changes aim to improve regulatory efficiency and strengthening energy planning.

The CFE has played the leading role in geothermal development in Mexico, developing and operating the geothermal power facilities of Cerro Prieto, Los Azufres, and Los Humeros.