Slowing The Juggernaut

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In 1992, Mexico thrust itself on to the forefront of the international power private investment stage by amending its power sector laws to permit private sector investment in power generation assets. Those early energy reforms permitted developers and investors to enter the power generation sector (which had been reserved exclusively for the Mexican government) and sell power to the Comisión Federal de Electricidad (CFE), Mexico’s national electric utility, pursuant to power purchase agreements, and provide power to private sector participants under energy self-supply contracts. The opening of the energy market brought droves of international developers from throughout the Americas, Europe and Asia who were eager to enter one of the largest and most robust power markets the world. Over a very short period, the Mexican power sector was able to convert itself into one of the most modern and efficient in the world through the installation of new large-scale gas-fired and hydroelectric power plants using the latest technologies available in the international power market.

Originally published in Latin Lawyer magazine Volume 13, Issue 5.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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