Introduction
A recent power outage affecting 2.3 million users in Mexico’s Yucatan Peninsula highlighted the urgent need for improved electricity transmission infrastructure. While generating more electricity is essential, enhancing the grid’s efficiency has become equally critical.
The Nearshoring Landscape and Existing Challenges
In the context of nearshoring, with industrial parks hungry for megawatts, Mexico’s national grid operates with narrow margins and bottlenecks that increase service costs and operational risks. CFE Fibra E emerges as a financial instrument to accelerate investments in the “electric highway” while maintaining state control.
Growing Energy Demand and Inadequate Capacity
The peak demand of the SEN reached 54.5 GW in 2023 and is projected to grow at annual rates of 2.4-2.9% under official scenarios. Previous alerts have been issued regarding insufficient capacity; if investment does not accelerate, the deficit by 2030 could surpass 48,000 GWh.
Reliance on Natural Gas and Import Vulnerabilities
Mexico’s energy matrix depends around 60% on natural gas, much of which is imported from Texas. The 2021 cold snap exposed the vulnerabilities of this reliance.
Regional Imbalance and Cost Disparities
Nearshoring concentrates load in the Northeast and Bajio, while regions like Yucatan face higher costs due to insufficient interconnections.
CFE Fibra E: A Financial Vehicle for Transmission Investments
CFE Fibra E is an investment vehicle channeling institutional capital towards mature assets with relatively stable cash flows. Although CFE retains ownership and operation of the RNT, Fibra E enables third-party leverage on regulated income without ceding control of the grid.
Constitutional Reform and State Prevalence
The 2024 constitutional reform reinforced “state prevalence,” requiring CFE to participate in at least 54% of generation. Public policy now acknowledges indirect financing schemes for the grid, such as Fibra E, crucial to bridge the capital gap.
National Energy Plan and Grid Strengthening Initiatives
The National Energy Plan and Mexico 2030 set targets to add 13 GW of public generation and enable 6.4-9.55 GW of clean private generation, along with 59 projects to bolster the grid (86 new substations and 63 expansions).
CFE Fibra E’s Debt Issuance and Future Implications
On September 11, 2025, CFE Fibra E issued $725 million in international bonds maturing in 2040 with a 5.875% coupon. These funds aim to increase participation in the Promoted F/80758 Trust (RNT owner) from 6.77% to boost exposure to regulated income.
Debt-to-Assets Ratio and Manageable Levels
The estimated debt-to-assets ratio is between 30% and 35%, a manageable level for an infrastructure investment vehicle.
Key Questions and Answers
- What is CFE Fibra E? CFE Fibra E is an investment vehicle that channels institutional capital towards mature transmission assets, enabling third-party leverage on regulated income without ceding control of the grid.
- Why is improved transmission infrastructure crucial for Mexico? Enhanced transmission infrastructure reduces technical losses, minimizes interruptions, and decreases the reliance on expensive backup power sources in deficit areas like the Yucatan Peninsula.
- How does CFE Fibra E’s debt issuance impact the grid? The $725 million bond issuance aims to increase CFE Fibra E’s participation in the Promoted F/80758 Trust, which owns the RNT. This will boost exposure to regulated income, though it also increases interest expenses as investments in the grid start to offset the trust’s net flow.
- What are the benefits of stable financing for CFE Fibra E? Sustained financing demonstrates that energy sovereignty and economic efficiency are not incompatible objectives. In a country where electricity conditions investment, achieving this balance would be transformative.
