Mexico Electricity Reform

Mexico's sweeping energy reforms of 2013-2014 have critical market implications, both broad and deep, for its electricity, oil, and gas sectors. The deregulation of the 68-gigawatt electricity market has had an especially extensive impact on the state-owned electricity company, Commission Federal de Electricidad (CFE), which had a monopoly in electricity generation, distribution, and retail for more than 75 years. The electricity landscape has changed dramatically.

As a result of the reforms, CFE was split into nine companies. In March 2016, CFE concluded its first long-term power auction in order to secure capacity, energy, and environmental credits for its newly independent retail company and awarded 1,720 megawatts of power-purchase agreements (PPAs) to solar and wind projects. The first-ever Mexican wholesale electricity market was also launched, laying the groundwork for competition and a more diverse generation mix.

There are two key implications for the oil and gas industries. First, reforms have created the opportunity for direct foreign investment in national upstream oil and gas reserves, whose non-conventional resources rank sixth globally. Second, the projected 75% increase in demand for the use of natural gas for power generation by 2030 means there will be greater demand for US natural gas imports and the associated investment in pipeline capacity.

The greatest challenge facing both market incumbents and new entrants is the lack of clarity that will persist while regulations, policies, and procedures are drafted and finalized. The WPTF Mexico Committee helps members understand the current state-of-play as well as foster a competitive and accessible local market. Our committee keeps members informed through bi-monthly conference calls and critical market updates. We also facilitate access and exchanges through industry relationships and in-country meetings. 

Contact Person

Rajan VigThe WPTF Mexico Committee Consultant is Rajan Vig. Rajan started his career in strategy consulting with FTSE 100 companies, working at WPP Group in London before working at private equity firm, Hamilton Bradshaw, where he began his consulting focus on commodities. He moved to Houston in 2014 to found an energy human capital consultancy within Sir Peter Ogden’s portfolio, where he oversaw the build-out of commercial energy businesses across oil, gas and renewables into emerging markets across the Americas, specifically Mexico and the Southern Cone. Most recently, Rajan started and ran BioUrja Trading's office in Mexico City, managing the company’s implementation across trading and origination in Mexico across fuels, gas and electricity.  Rajan has a BA (Hons) in Modern Languages (Spanish & Italian with Portuguese) from the University of Manchester and an MSc in Latin American Studies (Economics & Politics) from Oxford University.



WG Consulting, represented by Rebecca Bollenbach, is an advisory partner to WPTF's Mexico Committee.

Rebecca Bollenbach serves as a Managing Director at WG Commodity Management Services LLC. In her eighteen years of experience in deregulated power and gas, she has worked closely with a range of clients on systems and process optimization in physical and financial power across ERCOT, SPP, SERC, PJM, CAISO, NYISO, ISO-NE, Ontario, Alberta, and most recently in Mexico. Rebecca has worked with dozens of wholesale, retail, and power trading clients around the design, build and implementation of trading, forecasting, and ETRM systems.

In addition to her consulting experience, she has served as Vice President of Market Advisory for Adapt2 ISO and held several leadership roles at Reliant Energy, including Director of Forecasting. Rebecca currently leverages her knowledge of ISO operations to develop strategies, process and systems to support clients in Mexico's emerging energy markets.

Rebecca Bollenbach
Phone: (832) 338-8929