On October 3, 2025, the new regulations governing Mexico’s energy sector, covering hydrocarbons, electricity, biofuels and energy transition matters were published in the Diario Oficial de la Federación (Official Gazette of the Federation, “DOF”), among them, the new Reglamento de la Ley de Geotermia (Regulations to the Geothermal Law; “Regulations”).

The publication is available here: Regulations to the Geothermal Law.

• Under the new Regulations, all existing permits and concessions will remain valid, and compliance obligations will continue to be governed by the repealed framework, except where it conflicts with the Ley de Geotermia (Geothermal Law) and the new Regulations.

• The Regulations establishes procedural retroactive effects for proceedings related to the granting of permits and concessions that were initiated under the repealed legislation.

• The Regulations provide that the Secretaría de Energía (Ministry of Energy; “SENER”) must issue general administrative provisions on binding energy planning no later than December 30, 2025. Binding planning for the energy sector is aimed at developing strategic areas and projects that ensure, among other objectives, Energy Justice , as well as the regulation of energy-transition obligations, and must be taken into account by SENER when granting permits and concessions.

• The following regulations are repealed:

Repealed	Substitutes
Regulations of the Geothermal Energy Law. (DOF 31/10/2014)	Regulations of the Geothermal Law.

I. Content of the Regulations

I.1. General Matters.

• In accordance with the new Geothermal Law, the Regulation establishes the specific provisions governing the submission of requirements and the obligations related to geothermal exploration, exploitation, and diverse uses before the SENER and the Comisión Nacional del Agua (National Water Commission “CONAGUA”).

• It sets out the procedures and general requirements for the processing of permits by activity, including modifications, extensions, suspensions, and assignments, as well as coordination on water-management matters.

I.2. Processing of Authorizations and Permits

• The Regulations expressly establishes general requirements applicable to all permit applications for regulated activities, which now include not appearing on the taxpayer list referenced in Article 69-B of the Código Fiscal de la Federación (Federal Tax Code).

• Geothermal uses for the generation of electricity below 0.7 megawatts, in accordance with the Ley del Sector Eléctrico (Electric Sector Law), its regulations, and related provisions, will be exempt from permitting, provided the project contributes to Energy Justice for the benefit of Indigenous peoples and communities.

• Small-scale projects intended for uses other than electricity generation (such as urban or greenhouse heating, freshwater distillation, or pulp production) will also be exempt from permitting, subject to registration with SENER.

I.3. Permit Terms.

• Under the Geothermal Law, the following terms and extensions apply:
  • Exploration Permit: valid for up to 4 years, renewable for an additional 4 years upon evidence of compliance and technical justification.
  • Geothermal Resource Exploitation Concession: valid for up to 30 years, renewable for additional periods.
  • Permit for uses other than electricity generation: valid for up to 15 years, renewable for equal or shorter periods.

I.4. Binding Planning and Social Considerations.

• The Regulations incorporates the concept of binding planning for the energy sector, which will be issued by SENER through general administrative provisions. This planning is aimed at developing strategic areas and projects that ensure, among other priorities: (i) the predominance of the Comisión Federal de Electricidad (Federal Electricity Commission; “CFE”), (ii) the promotion of decarbonization, and (iii) adherence to the principle of Energy Justice.

• Binding planning must be considered by SENER when granting assignments, contracts, permits, concessions, and authorizations.

• The Regulations also incorporates the requirement to conduct prior consultation with Indigenous peoples and communities when the development of projects is anticipated to directly affect their rights and interests.

I.5. Transitory Provisions.

• All regulatory provisions issued prior to the entry into force of the Regulations will remain in effect until replaced by new provisions, including, specifically, the agreements and resolutions issued by SENER.

• Permits and concessions issued prior to the Ley de Geotermia (Geothermal Law) remain valid under their original terms pursuant to the repealed Ley de Energía Geotérmica (Geothermal Energy Law). However, the new Geothermal Law and its Regulations will apply to the extent they do not conflict with the repealed framework, making it necessary to evaluate the conditions of each permit and concession on a case-by-case basis.

• While proceedings and applications submitted prior to the entry into force of the Geothermal Law will continue to be processed, the Seventh Transitory Article of the Regulations provides that all applications for authorizations, approvals, or permits must be resolved under the new legal framework.

Although it has been stated that “the above does not constitute a retroactive effect to the detriment of applicants, as unresolved applications did not confer any acquired right,” this does not preclude affected parties from asserting legal arguments against potentially harmful procedural retroactivity.

If you have any questions regarding the scope or implementation of this note, please contact us.

Bernardo Mendoza
Partner
bmendoza@k-g.com

Dorothy Lerch
Counselor
dlerch@k-g.com.mx

Gerardo H. Estrada
Attorney
gestrada@k-g.com.mx