Government and Private Sector Investments to Strengthen National Electric System
The federal government has announced a portfolio of public and private investment initiatives to bolster the national electric system, maintain state control over at least 54% of power generation, and expedite the energy transition with new clean energy projects.
CFE’s Investment in Key Generation Projects
During a press conference attended by President Claudia Sheinbaum, CFE’s General Director Emilia Calleja Alor revealed that the state-owned company will push forward five priority generation projects, primarily consisting of combined cycle plants. These projects will add approximately 3,000 megawatts (MW) of firm capacity with an estimated investment of $4,328 million, equivalent to over 80,000 million pesos.
- Francisco Pérez Ríos II: Development of the combined cycle power plant in Tula, Hidalgo, is set to begin as the first project of this administration. Other plants in Salamanca, Altamira, and Mazatlán are in the engineering phase to commence construction shortly.
- Existing CFE Facilities: Several projects will be built within existing CFE facilities, allowing for the use of installed infrastructure, reducing construction times, costs, and technical risks, and accelerating their entry into operation.
Clean Energy Projects and Expansion of Solar Power
CFE’s Director highlighted the continuity of the photovoltaic project in Puerto Peñasco, Sonora. Phases 3 and 4 will add 580 MW of additional capacity, with an investment of approximately $710 million. Construction for Phase 3 will start next week, while Phase 4 will commence in February 2026.
- Puerto Peñasco: Once completed, Puerto Peñasco will become the largest photovoltaic complex in Latin America, with 1,000 MW capacity. It will provide clean energy to a city the size of Guadalajara or Mérida and prevent over one million tons of CO₂ emissions annually.
- New Solar and Wind Projects: Two new photovoltaic projects in Coahuila (Carbón II and Río Escondido) will add 556 MW, with an investment close to $826 million. Additionally, three clean energy projects (two solar and one wind) in Durango, Quintana Roo, and Guanajuato are under evaluation.
Transmission Line Projects and Private Sector Involvement
CFE will execute 66 priority projects between 2025 and 2026 to eliminate bottlenecks, reinforce the grid, and support industrial and urban growth. Twenty-two projects will be tendered in the last quarter of 2025, and forty-four more will be awarded throughout 2026, with defined timelines and diligent oversight.
Private Sector Investments and Binding Planning
Energy Secretary Luz Elena González reported that the October call for private generation projects received nearly 98 proposals, with 20 projects selected following a rigorous technical and financial evaluation.
- Project Details: Fifteen photovoltaic and five wind projects will add 3,320 MW of new capacity, along with 1,488 MW of storage, with an estimated investment of $4,752 million (around 90,000 million pesos). These projects will be developed in eleven states including Campeche, Hidalgo, Yucatán, Oaxaca, Tamaulipas, Veracruz, and Querétaro.
- State Control Restoration: The new binding planning has enabled the government to regain control of the electric sector, allowing for expedited permits without compromising technical rigor and aligning investments with reliability, energy justice, and energy transition criteria. Most projects are expected to enter operation between 2027 and 2028.
Key Questions and Answers
- What is the total investment announced by CFE? The CFE has announced an investment of approximately $80,000 million (80,000 million pesos) for five priority generation projects.
- Which clean energy projects are being expanded? The Puerto Peñasco photovoltaic project in Sonora is being expanded with Phases 3 and 4, adding 580 MW of capacity. Two new photovoltaic projects in Coahuila and three clean energy projects (two solar and one wind) in Durango, Quintana Roo, and Guanajuato are also underway.
- How many transmission projects will CFE execute between 2025 and 2026? CFE will execute 66 priority transmission projects between 2025 and 2026.
- What is the outcome of the private sector project call? The call for private generation projects received nearly 98 proposals, with 20 projects selected following a rigorous technical and financial evaluation.
- How will binding planning impact the electric sector? The new binding planning has enabled the government to regain control of the electric sector, allowing for expedited permits without compromising technical rigor and aligning investments with reliability, energy justice, and energy transition criteria.
