Amendments to Mexico’s Electric Industry Law, signed into law on March 9, 2021, have generated a series of debates and, perhaps most importantly, resulted in proceedings in Mexico’s Judiciary surrounding the constitutionality of the legislation. Legal challenges have been set forth by both industry and legislators of the opposition. Beyond the key question and debate of the law’s constitutionality, the legislation will have significant effects on the economy and the environment that bear noting. For starters, the amendments change the generation dispatch criteria which stands out for its short run impacts on the cost of supply for regulated users and the increase in Green House Gas (GHG) emissions. This Policy Brief will detail the impacts of the power sector legislation based upon the results of an analysis carried out for Mexico’s Business Coordinating Council (CCE by its acronym in Spanish).

Read and download the full report here.