Mexico’s Electricity Sector Law: what changes and how it impacts the industry

Mexico’s Electricity Sector Law modernizes the regulation of the Mexican electricity system with an emphasis on efficiency, reliability, and sustainability. It introduces new concepts such as self-consumption groups, encourages the use of energy storage systems, and promotes domestic investment in electricity infrastructure. For industry, it represents an opportunity to optimize energy use through smart technologies, operational support, and energy management strategies.

Faced with constant energy demand, aging infrastructure, and increased frequency of blackouts during heat waves in Mexico, the new Electricity Sector Law (LSE) strengthens the role of the State in electricity management and prioritizes the reliability, efficiency, and sustainability of supply.

For companies in the industrial sector, this regulation aligns with the transition to more resilient systems that integrate clean energy, BESS solutions (with peak shaving and load shifting strategies), EMS platforms, among other technologies that optimize consumption, strengthen competitiveness, and ensure operational continuity in an increasingly demanding energy environment.

What is the Electricity Sector Law in Mexico?

The Electricity Sector Law (LSE), enacted by the Chamber of Deputies on March 18, 2025, and published in the Official Gazette of the Federation (DOF) on October 3 of the same year, repeals the previous regulations of the Electricity Industry Law of 2014 and focuses on strengthening the State’s stewardship, as well as guaranteeing the accessibility, quality, reliability, continuity, efficiency, and security of the National Electricity System (SEN).

This new legal framework reaffirms the paradigm shift in the energy sector, directly impacting the operational and investment strategies of large and medium-sized industrial companies. The document governs the planning, operation, and development of all activities of the electricity industry in Mexico, such as generation, transmission, distribution, commercialization, and operational control.

Main changes in the new 2025 electricity sector regulations

The new legal framework establishes a clear and hierarchical institutional structure, in which the Ministry of Energy (SENER) assumes leadership and defines national energy policy; the National Energy Commission (CNE) acts as the regulatory body responsible for granting, modifying, or revoking permits; and the National Energy Control Center (CENACE) operates the SEN and the Wholesale Electricity Market (MEM), with mandatory compliance instructions for all participants in the sector.

However, the most relevant changes for the high-demand industrial sector focus on planning, permits, and generation modalities:

• State prevalence and integration of private entities: the methodology for annually determining the share of electricity generation injected by the state is defined. In turn, Self-Consumption Groups are formalized through a private network, which offers energy management schemes for corporate groups or industrial parks.
• Binding planning: SENER will develop the Electricity Sector Development Plan, a mandatory planning instrument that will dictate the roadmap for the expansion of the National Electricity System (SEN).
• Promotion of national and mixed investment: mixed investment and joint development schemes are created between the CFE and private companies, with a minimum state participation of 54% of the total electricity generation injected. These models will allow for the modernization of networks, the implementation of storage infrastructure, and the development of strategic electricity projects.
• Self-consumption and storage: for the first time, the regulation defines in detail the participation of Electric Energy Storage Systems (SAEES), allowing their use in both generation and commercialization, as well as in transmission and distribution infrastructure. SAEEs may be used as efficient alternatives to maintain the reliability of the SEN.
• Promoting energy efficiency and clean transition: the law incorporates the goal of reducing polluting emissions, promoting the decarbonization of the electricity sector, and promoting the use of clean energy sources.

Impact of the Electricity Sector Law on Mexican industry

The strengthening of the National Electricity System (SEN) through binding planning mechanisms means that industries will have to adopt self-generation, storage, and consumption control strategies to ensure energy stability and predictability.

In addition, with this regulation of the electricity sector law, manufacturing, automotive, chemical, cement, and food companies—sectors with high energy demand—will face a more structured environment around efficiency, planning, and supply reliability.

The law also promotes the transition to clean energy and electrical backup technologies, opening up opportunities to integrate solutions such as BESS systems, EMS platforms, and power quality equipment aimed at reducing losses, voltage variations, and unscheduled plant shutdowns.

How to prepare for changes in the electricity framework?

Adapting to this law in Mexico’s electricity sector means integrating smart solutions that guarantee operational continuity, cost control, and regulatory compliance, as it redefines the relationship between the national electricity infrastructure and industrial consumption.

To this end, some recommendations for industrial companies to consider are:

• Identify consumption patterns: such as load peaks and technical losses, allowing you to prioritize investments in high-efficiency equipment and backup systems.
• Electrical maintenance and modernization: Upgrading panels, industrial UPS, load banks, and electrical protections helps comply with the SEN’s new reliability standards.
• Implementation of EMS systems and smart monitoring: Energy management systems allow you to view and control electricity usage in real time, facilitating data-driven operational decisions.
• Integration of storage and distributed generation: The installation of backup technologies and schemes in accordance with the energy self-consumption law strengthens operational continuity in the event of interruptions or variations in demand.
• Regulatory compliance and sustainable efficiency: Companies must align their operations with the clean energy and efficiency criteria that SENER will publish for the 2025-2028 period.

Grupo Industronic’s solutions to the challenges of the Electricity Sector Law

Grupo Industronic offers certified technological solutions and consulting services that help industrial companies comply with the new Electricity Sector Law. Among the most important solutions are:

• Integration of EMS systems: for real-time control, monitoring, and optimization of electricity consumption.
• Energy Storage Systems or BESS solutions: integrated into existing infrastructure, allowing companies to manage electricity demand at peak times and provide energy backup for self-consumption, thereby reducing electricity costs.
• Industrial UPS: designed to guarantee the quality and continuity of the electricity supply in the event of power outages.
• Smart electrical infrastructure: design and modernization of panels, load banks, and distribution systems that meet the SEN’s quality, reliability, and safety criteria.
• Specialized energy consulting: technical advice for migrating to self-generation models, efficient cogeneration, or participation in mixed investment schemes.

Frequently asked questions about the Electricity Sector Law

What are the main changes in the new regulations?

The new Electricity Sector Law regulations mainly strengthen the planning and control of the National Electricity System. In turn, it encourages national investment, the development of joint projects, regulates self-consumption and energy storage, and promotes efficiency and the transition to clean energy. In addition, it establishes an institutional structure headed by SENER, CNE, and CENACE, with clear guidelines for permits, reliability, and electrical infrastructure development.

How does the law affect Mexican companies?

The LSE impacts industrial companies by requiring more efficient and transparent management of their electricity consumption. Industries must ensure stability in their internal networks, have backup and continuous monitoring systems in place, and incorporate energy efficiency practices. Those that adopt technological solutions early on—such as EMS, storage, and load control—will gain competitive advantages in costs and regulatory compliance.

What actions should companies take to comply with the law?

Companies should review their classification and electricity contracts to ensure consistency with the new regulations, as well as evaluate opportunities for efficient self-generation or cogeneration. It is essential to update the electrical infrastructure in accordance with the reliability criteria of the National Electric System (SEN) and incorporate energy storage systems that optimize demand and ensure operational continuity.

In addition, it is recommended to conduct energy audits, establish efficiency indicators, apply preventive maintenance, and align the supply chain with the requirements defined by SENER and CONUEE, promoting more transparent and traceable energy management.