Mexico’s Senate approved a set of amendments—sponsored by President Lopez Obrador—to Mexico’s Power Industry Law on March 2, 2021. The amendments aim to improve the market position and profitability of the state-owned utility company, Comisión Federal de Electricidad (CFE), to the detriment of private energy producers, including foreign investors in renewable energy.
Our litigation and M&A lawyers have authored a LawFlash that explains the impact of the amendments and provides insights as to how investors can protect their investments via international arbitration as long as the foreign investor is from a home state that has concluded an investment treaty with Mexico.