The Energy Reform in Mexico represents a constitutional reform on energy (Energy Reform Decree and related 9 newly created laws and 12 modified laws).
"The new laws adopted within the Reform package include:
• Law on Hydrocarbons (seeks to attract foreign investment to Mexico’s hydrocarbon sector, but also eliminates gasoline subsidies and promotes substitution of oil energy sources by natural gas by establishing lower tax rates for shale gas exploitation; in addition it provides for creation of ‘safeguarded areas’ where hydrocarbon extraction is prohibited)
• Law on the Electricity industry (increase share of renewable electricity, clean energy certification, planning for a smart grid)
• Law on Coordinated Regulatory Organs for the energy matters
• Law on Petróleos Mexicanos (reforms the structure and obligations of the state oil company PEMEX)
• Law on the Federal Electricity Commission
• Law on the Agency for National Industry Security and Environment Protection in the Hydrocarbon Sector (industry operations security and control of hazardous emissions)
• Law on Geothermal Energy (regulates the exploration and exploitation of geothermal energy production for electricity generation and other uses)
• Law on Revenues from Hydrocarbons
• Law on the Mexican Petrol Fund for Stability and Development (revenues from petrol extraction in Mexico, of which at least 40% annually are reserved for long-term savings “for the future generations”, while the rest can be used for investment projects not limited to clean technologies – e.g. oil development projects included)" (Source:
This reform focuses strongly on energy security and the reduction in imports of fossil fuels. It aims to produce 3 million barrels of oil in 2018 and 3.5 million in 2025 as compared to a current production value of 2.5 million. Similarly, the aim is to increase the production of natural gas from the current value of 5700 million cubic feet to 8000 million cubic feet in 2018 and 1400 millions in 2025.
Furthermore, the most polluting power plants will be replaced by clean energy sources and natural gas.

Impact indicators:
  • 1
    Name: Share of renewables (%)
    Value: 26.5
    Base year: -
    Target year: 2020
    Comments: limit of annual increase in energy consumption for six years (2014-2020), share of non fossil fuel energy in the primary energy consumption. Targets expressed as Share of renewables in electricity generation incl. Hydro (%), Share of non-fossil energy in TPES (%)
  • 2
    Name: Share of renewables (%)
    Value: 20
    Base year: -
    Target year: 2030
    Comments: -