Mexico's energy landscape is undergoing a significant transformation under the administration of President Claudia Sheinbaum. Moving away from historically conservative investment in the sector, the new leadership has swiftly implemented policies to bolster electricity generation, notably by raising the capacity limits for commercial and industrial solar grid connections.
This strategic shift is encapsulated in the nation's 2025–2030 Expansion Plan for the National Electric System (SEN). The comprehensive program, announced by the Federal Electricity Commission (CFE), aims to ensure sufficient generation capacity, enhance system reliability, and avert future supply risks. The projects are designed to meet the anticipated growth in electricity demand over the coming years.
Strategic Investments in Firm Generation
To provide a stable backbone for the grid, five firm generation projects are being developed across strategic regions. These combined-cycle and internal combustion plants will add approximately 3,000 MW to the national system, with a total investment of $4.33 billion USD.
The first of these projects, the Francisco Pérez Ríos (Tula II) combined-cycle plant in Hidalgo, has already broken ground, marking the start of construction on new generation assets under the current administration.
A Major Push for Utility-Scale Solar
Alongside conventional generation, clean energy is taking center stage. The Puerto Peñasco photovoltaic plant in Sonora is expanding, with phases 3 and 4 currently in progress. Once completed, this facility will become Latin America's largest solar park, boasting a total capacity of 1,000 MW and capable of powering a city the size of Guadalajara.
Two additional strategic solar projects are scheduled to begin construction in February. The Carbón II and Río Escondido PV plants, both located in Coahuila, will feature integrated energy storage and represent a combined investment of over $826 million USD. Furthermore, two additional solar projects and one wind project, totaling roughly 443 MW, are under evaluation for future development.
Grid Modernization to Support Growth
Recognizing that new generation requires robust transmission, the expansion plan also includes 66 transmission projects with an estimated investment of $1.9 billion USD. These initiatives are designed to strengthen the existing grid, eliminate bottlenecks, and support growing electricity demand, particularly in rapidly industrializing regions. Priority projects are slated for implementation in 2025 and 2026.
To finance this grid reinforcement, the Development Bank of Latin America and the Caribbean has approved a $300 million USD credit line for CFE, specifically for transmission and distribution infrastructure.
Mexico is actively inviting domestic industry participation in these projects, aiming to increase local content within a clear regulatory framework. Through this ambitious plan, the country is laying the groundwork for a more robust and sustainable energy future to power its continued economic and social development.
Sources: Mexico's Federal Electricity Commission (CFE), Ministry of Energy (SENER).
