Mexico's executive branch, through the Ministry of Energy (Secretaría de Energía or SENER), on Oct. 3, 2025, published in the Federal Register (Diario Oficial de la Federación or DOF) the Regulations of the Geothermal Law, aimed at establishing the use of geothermal energy in upstream and other activities, under principles of governing strategic areas and strategic enterprises and organic simplification, following the order published in the DOF on Oct. 31, 2024.
Background
The regulations establish the procedures and conditions for granting geothermal upstream permits and licenses, incorporate binding energy planning as a public policy requirement, and promote coordinated participation between the state and private entities in upstream activities from geothermal resources.
Key Considerations
Upstream Permits and Licenses
SENER is designated as the corresponding agency to grant permits and licenses. The regulations introduce small-scale diversified uses, applicable to geothermal resources with temperatures below 100°C, intended for local applications developed within an area of no more than 30,000 square meters.
Applications shall be accompanied by technical, financial and social impact studies, among other requirements.
Registration and Transparency
The regulations establish the Geothermal Registry, administered by SENER, where all permits, licenses and related activities should be registered. This registry will be public and mandatory for all titleholders.
Information contained in the registry will be integrated into the National Energy Information System in accordance with the Regulations of the Law on Energy Planning and Transition.
Binding Planning and Coordination
Following the Law on Energy Planning and Transition, the regulations provide that geothermal projects should be aligned with national energy planning mechanisms, particularly the Electric Power Sector Development Plan.
SENER shall coordinate with the Federal Electricity Commission (Comisión Federal de Electricidad or CFE) and National Water Commission in project appraisal, ensuring that geothermal licenses are consistent with the sustainable use of groundwater.
The CFE retains its existing geothermal licenses and may request new areas for upstream activities, subject to evidence of technical and financial capacity.
Final Comments
Regarding binding planning, SENER shall publish, within 60 business days, the general administrative provisions referred to in Article 6 (Integration with Energy Planning) and Article 7 (Evaluation Criteria for Binding Planning) of the regulations. These provisions will serve as the basis for institutional coordination and implementation of strategic geothermal projects. Until such provisions are issued, Article 6 of the regulations will not apply.
Finally, the regulations establish that existing formats and procedures will remain in force until official electronic systems are updated and that all expenditures related to their implementation should be covered under approved budgets without extraordinary allocations.
