1. Overview of the New Mexican Energy Model

2. CONSTITUTIONAL ENERGY REFORM
On 2013 Mexico reformed its Constitution in the energy sector (articles 25, 27 and 28) for the first time in the last six decades.
The exploration and extraction of hydrocarbons, the planning of the electric sector and the public service of distribution and transmission of electricity, are considered as strategic areas.
Such activities can be made through State Productive Enterprises, or contracts awarded to private entities (except for the planning).
The oil and hydrocarbons that lay in the subsoil are property of the Nation, and they will be exploited with a purpose to gain additional revenue to contribute to the Nation’s long-term development.

3. Objectives of Energy Policies
Hydrocarbons
Electricity
Attract new capital and state of the art technology.
Access deep-water and non- conventional reservoirs.
Increase natural gas and oil supply.
Reduce electric rates to boost overall economic competitiveness.
Assure reliable service and guarantee universal access.
Increase system efficiency and reduce losses.
Sustainability and Energy Transition
Cross-cutting
Diversify generation.
Develop renewable energies.
Reduce environmental impact.
Promote investment
Modernize infrastructure
Guarantee transparency

4. The New Hydrocarbons Model
Hydrocarbons Exploration
and
Extraction
Industrial Transformation, Distribution and Retail
Transportation
And
Storage
UPSTREAM
MIDSTREAM
DOWNSTREAM
Contracts
Permits
With a stronger institutional and regulatory framework, the Reform presents good opportunities for investment throughout the value chain.

5. Hydrocarbons Exploration
The New Power Sector Model
Hydrocarbons Exploration
and
Extraction
GENERATION
TRANSMISSION & DISTRIBUTION
COMMERCIALIZATION
CONSUMPTION
Hydrocarbons Exploration
and
Hydrocarbons Exploration
and
Extraction
Hydrocarbons Exploration
and
Extraction
Competition
PPPs
Wholesale market
Qualified users
Private investment is allowed in power generation and commercialization for qualified users.
Private investment is welcome in the transmission and distribution sectors, contracted by CFE.
A decentralized public entity, The National Center for Energy Control (CENACE), will control dispatch and manage the wholesale market.