Energy Reform Package

The Constitutional Reform on Energy (Energy Reform Decree and related 9 newly created laws and 12 modified laws) aims to modernise the energy system by introducing greater competitiveness and efficiency to the hydrocarbons sector, supporting shift towards low-carbon electricity generation and introducing the concept of sustainability' into the Constitution.
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 Securityand 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)