Background on the Energy Sector in Mexico
Mexico’s energy sector has been undergoing significant changes, aiming to boost renewable energy production and modernize the electricity market. A crucial part of this transformation involves private investments in wind and solar parks.
First Round of Investment Opportunities
In the first round, Mexico’s Secretariat of Energy (SENER) launched a priority attention call for private projects, resulting in the selection of 20 plants with a combined capacity of 3,320 megawatts and joint investments totaling $4,752 million. This first-of-its-kind selection by the government is expected to reinvigorate Mexico’s electricity market, as it prioritizes permits and approvals for projects exceeding the capacity of the Comisión Federal de Electricidad’s (CFE) long-term energy purchase plan in 2015.
Second Round Announcement
Secretary of Energy, Luz Elena González, announced that a second priority attention call for private projects will be launched in the first quarter of 2026. The initial process received responses from 600 participants with 98 proposals for new parks.
Key Project Details
- The selected projects will enter operation between 2027 and 2028.
- There are 15 photovoltaic projects with a capacity of 2,471 megawatts and five wind energy projects contributing 849 megawatts.
- These projects will also have a combined backup storage capacity of 1,488 megawatts across 11 entities: Campeche, Hidalgo, Yucatán, Guanajuato, Oaxaca, Tamaulipas, Quintana Roo, Puebla, Veracruz, Zacatecas, and Querétaro.
Impact on the Energy Sector
The government offered a total of 5,890 megawatts, with approximately 3,790 expected to be photovoltaic and 2,100 wind energy. About 30% of the total capacity will involve storage, exceeding initial projections by 45%.
These selected projects represent 56% of the total capacity offered in this first call, bringing private IP participation in national electricity generation close to the maximum 46%.
Expert Opinions and Future Prospects
Víctor Ramírez Cabrera, an expert in Mexico’s electricity sector, explained to El Economista that this first call, lasting two and a half months, granted more generation permits than the first long-term auction during Enrique Peña Nieto’s six-year term. The capacity to be operated under private management is at least 50% higher than what was granted in the 2015 concession.
Ramírez Cabrera considers this a positive sign for the market’s renewed start. With 98 registered projects, a high number considering only 20 were selected, indicates maturity and progress in Mexico’s renewable energy industry.
Looking ahead, Ramírez Cabrera anticipates that the government will refine requirements while private entities enhance proposal details and studies, leading to more advanced projects in future rounds.
As conventional fossil fuel or combined-cycle generation competitions will not be held, the IP will spearhead renewable energy development in Mexico. This technology will remain reserved for state development, as explicitly stated in the current call’s clarifications.
Key Questions and Answers
- What is the purpose of the second priority attention call for private projects? The Mexican government aims to further boost renewable energy production by launching another round of private investments in wind and solar parks.
- What types of projects were selected in the first round? The first round resulted in the selection of 20 plants, comprising 15 photovoltaic projects and five wind energy projects, with a combined capacity of 3,320 megawatts.
- When will the second priority attention call take place? The second round is scheduled to begin in the first quarter of 2026.
- What is the expected impact on Mexico’s electricity market? This initiative aims to reinvigorate the Mexican electricity market by prioritizing permits and approvals for larger private projects in renewable energy.
- What is the significance of these project selections? These projects represent 56% of the total capacity offered in the first call, bringing private IP participation in national electricity generation close to the maximum 46%.
