The publication of Mexico’s new Binding Planning Administrative Provisions (DACG, by their Spanish acronym) by the Ministry of Energy marks a structural shift in how electricity generation projects are conceived, evaluated and approved nationwide.
On 17 October 2025, Mexico moved away from assessing generation permits in isolation. From now on, every project must demonstrate how it contributes to the balance, stability and long-term efficiency of the National Electric System (SEN).
These updated regulations function as an “energy traffic light.” Under the new framework, projects that integrate battery energy storage systems (BESS), improve supply quality, or provide documented benefits to SEN reliability and operational efficiency will receive priority in binding planning processes. In practice, this introduces a filter that directs private capital toward the technologies the grid needs most.
“It’s no longer about who installs more megawatts, but who installs value. Priority now lies in flexibility, quality, and the ability to reduce long-term system costs,” said Paulina Beck, General Counsel at Energía Real, a Mexican energy solutions company specializing in distributed generation, BESS and smart energy management.
With the publication of the DACG, private generators—especially those active in distributed generation, energy storage and intelligent energy management—are positioned to become key enablers of grid modernization and the country’s renewable energy transition. In this context, the state-owned utility CFE’s 54% market share target should not be interpreted as a limitation but as a framework that encourages complementarity between public and private actors.
For industrial consumers, integrating solar PV, BESS and advanced management systems into their operations will bring tangible competitive advantages under the new rules, including lower energy costs, higher reliability and improved ESG traceability.
A defining element of the DACG is the elevation of Energy Justice to a structural requirement. Developers must now submit a Social Management Plan with dedicated resources equivalent to 0.5% of total project capital expenditure (CAPEX), as mandated by the Ministry of Energy.
“The social component is no longer theoretical—it is now a mandatory budget line. This confirms that the energy transition cannot advance unless it delivers tangible benefits to the communities where we operate,” added the Energía Real executive.
