Mexico's Electricity Reform Inches Forward

An unprecedented reform of Mexico's power sector is well underway. By next month, the country will begin authorizing new contract models for implementing the 2014 electricity sector reform, which allows private participation in all areas of Mexico's electricity sector for the first time. Increasing private investment will offset the federal government's burden in expanding and modernizing the grid, thus preventing Mexico's booming industrial electricity demand from outstripping the supply. However, the stated goals of the electricity reform — improving the grid's efficiency and lowering the cost of electricity to users — will likely not be felt for several years.