The Strengthening and Expansion of the Mexican National Electric System Program (the "Program") was presented on February 5, 2025, by the Mexican federal executive authority. The expansion Program for 2025-2030 establishes a medium scenario with Cogeneration that would add 21,846 MW, and where: (i) private companies will contribute at least 6,400 MW of clean generation capacity, (ii) Federal Electricity Commission (“CFE” for its acronym in Spanish) will participate with 13,024 MW in Thermal Power Plants and clean energies, and (iii) there will be a synergy between CFE and the Mexican oil company PEMEX to add 2,422 MW of Cogeneration. In total, the goal is to make a clean energy contribution of 38% of the total Mexican National Electric System, and to reduce CO2 emissions by 4.5%.
CFE will participate in 51 projects with different technologies (including 10 combined cycle projects and 16 hydroelectric projects to be inaugurated between 2025 and 2027 and that have been previously started by the past administration), representing a capacity of 22,674 MW. Private companies will participate with 6,400 MW exclusively in projects with clean energy technology, with an estimated 741 MW in batteries to enter operation in 2027-2030.
Regarding the additions in capacity during the period 2027-2030, there are two estimated stages: 12 projects are to be developed in a first stage with different technologies (photovoltaic, batteries, combined cycles, and internal combustion) and 4 of these projects will be assigned by means of a bidding process that will be carried out during the first quarter of 2025 with a total capacity of 2,376 MW and which are located in Puerto Peñasco (Photovoltaic), Tula (Combined Cycle), Salamanca (Combined Cycle), and Los Cabos (Internal Combustion). In a second stage, during the period of 2027-2030, CFE considers 7 potential regions for the development of Wind Power Plants, generating a total clean energy capacity of 3,211 MW and an estimated investment of 4,204 million dollars.
Regarding the synergy between CFE and PEMEX, between 2027 and 2023, the Mexican government has identified 3 refineries located in Hidalgo, Veracruz, and Oaxaca for the construction of Cogeneration Plants, which will have a total capacity of 2,422 MW and an estimated investment of 2,059 million dollars.
In total, 25 projects will enter operation between 2027 and 2030 for the construction of plants (6 of them in 2027, 9 in 2028, 5 in 2029, and another 5 in 2030). Five of these projects will operate with natural gas, 17 with clean energy (including around 30% battery storage systems), and 3 cogeneration projects with 30% clean energy.
Regarding transmission projects, 80 projects are in process and 65 new projects will be defined by CFE in seven different Mexican geographical regions for the expansion and modernization of the Mexican National Transmission Network, an investment approximating more than 100,000 million Mexican pesos for these 145 projects.
Finally, the objective regarding distribution for the period from 2025 to 2030 is to expand and modernize the Mexican General Distribution Networks while maintaining their efficiency, quality, reliability, safety, and sustainability. For this purpose, there will be 86 expansions, modernizations, and construction of new electrical substations; modernization of transformers and feeders; and electrification in different localities across Mexican states with conventional distribution networks and individual solar modules. The total estimated investment for these projects is 3,600 million dollars.
If you require regulatory advice in this regard, our team of specialists are at your disposal to provide legal services tailored to your needs.
This newsletter was prepared by José Antonio Postigo-Uribe ([email protected]), Max Ernesto Hernández-Ernult, ([email protected]), Tania Elizabeth Trejo-Gálvez ([email protected]), Malcolm Hemmer-Rebolledo ([email protected]), and Grecia Farfán-Ureña ([email protected]).
