Last Review: April, 2025
Banobras offers interested parties information on the sector in Mexico with data from various sources in order to provide knowledge and useful elements for decision-making on the subject. The content presented does not reflect the position of Banobras.
Current status
The Strengthening and Expansion Plan for the National Electric System (2025-2030) foresees a total investment of approximately MXN 624.6 billion. On April 9, 2025, the Government of Mexico announced that, as part of the electricity sector initiatives, 29,000 MW of capacity will be added, with CFE providing reliability and firm energy, while private entities will support the energy transition.
Generation
- Investment: MXN 424.6 billion
- 2030 Target: Add 22,674 MW to public electricity generation capacity
- Total Capacity: 29,074 MW (CFE + Private)
- 76 projects
- 7 projects to be tendered between April and December 2025, aiming for operations between 2028 and 2029:
- Francisco Pérez Ríos Combined Cycle Plant (CCC): USD 827 million (tender April 2)
- Salamanca II CCC: USD 537 million (tender April 23)
- Altamira CCC: USD 424 million (tender May 14)
- Los Cabos Internal Combustion Plant (CCI): USD 272 million (tender June 11)
- Mazatlán CCC: USD 529 million (tender July 2)
- Puerto Peñasco Solar Plant Phase II (CFV): USD 270 million (tender August 12)
- Puerto Peñasco Solar Plant Phase IV (CFV): USD 252 million (tender August 21))
Wind power plant, Juchitán, Oaxaca Comisión Federal de Electricidad..
Transmission
- Investment: MXN 124.5 billion
- 2030 Target: 158 projects to strengthen the National Transmission Network (RNT) with 15,729 MVA
- 77 new transmission projects to be tendered, including 9 in 2025 (in Jalisco, Coahuila, Sinaloa, Chihuahua, Tamaulipas, Nuevo León, Baja California, and Guanajuato)
Distribution
- Monto: Investment: MXN 72.5 billion
- 2030 Target: 97 new substations, 95 substation expansions, 6,875 network modernization projects and 42,221 electrification projects
Private Sector Participation Schemes
Six schemes are planned for private sector participation:
- Three for self-consumption:
- Distributed energy generation (residential and commercial) from 0.5 to 0.7 MW
- Isolated self-consumption (0.7 to 20 MW)
- Interconnected self-consumption up to 0.7 MW.
- Three for energy generation:
- Long-term production contracts delivering energy to CFE, with potential asset transfer to CFE at the end.
- Mixed investment generation, maintaining 54% CFE participation, sharing risks and benefits.
- Maintaining the figure of independent power producers for sales in the wholesale electricity market.
Alignment with PRODESEN 2024-2038
CFE’s planning aligns with the National Electric System Development Program (PRODESEN) 2024-2038 , the Government of Mexico’s public policy instrument outlining a 15-year horizon for objectives, strategies, and priorities to meet energy demand. PRODESEN focuses on recovering CFE’s generation, transmission, distribution, and supply capacity.
According to the Electric Industry Law (Article 3), the industry comprises:
- Generation: Production of electricity from various sources, including renewables.
- Transmission: Transport via high-voltage networks.
- Distribution: Delivery from transmission networks to end users.
- Commercialization: Sale of electricity to residential and industrial consumers.
Energy Demand
In 2023, net electricity consumption grew by 3.5% compared to 2022, surpassing long-term projections. Expected annual growth rates for 2024-2028 are: 2.4% (base scenario), 2.9% (high scenario) and 2.1% (low scenario).[1]
Energy Generation
Total generation in 2023 reached 351,695 GWh, with 24.32% from clean energy sources. By generator: CFE: 41.9%, Independent Power Producers (IPPs): 29.7%, Private entities: 27.7%. A net generation of 525,151 GWh is projected by 2038, with plans to incorporate green hydrogen from 2035 to accelerate the energy transition and reduce natural gas use in combined cycle plants.[2]
Transmission and Distribution
The National Transmission Network (RNT) transports electricity to the General Distribution Networks (RGD) and the public, including 12 international connections, operating at 69 kV or higher. The RGD distributes energy via medium voltage (1 kV to 35 kV) and low voltage (1 kV or less) networks.
The RNT Length: 111,144 km with 337,998 towers nationwide.
Energy losses in RNT and RGD were 12.2% in 2023, with projections to reduce to 10.8% in 2024 and 7.9% by 2038. Electrical coverage reached 99.43% of the population in 2023, with 743,685 people still lacking access. In 2023, 4,648 electrification projects were carried out, with an investment of MXN 3.3 billion.[3]
Installed Capacity
In 2023, installed generation capacity was 87,1360 MW: CFE: 51.3%, IPPs: 19.10% and private: 30.7%
By 2038, capacity is projected to reach 176,516 MW, with a net addition of 84,194 MW between 2024-2038, including 31,739 MW from clean energy by 2030 and a transition to natural gas and green hydrogen in combined cycle plants..[4]
For more sector information, the Energy Information System (SIE)* offers a database maintained by Mexico’s energy agencies and the Ministry of Energy, responsible for national energy policy. This portal provides validated official statistics (registration required for access).*
[1] Prodesen 2024-2038 page 96
[2] Prodesen 2024-2038 page 202
[3] Prodesen 2024-2038 page 69
[4] Prodesen 2024-2038 page 96
The National Center for Humanities, Science and Technology (CONAHCYT) makes available to interested persons the Map of the National Electric System. The map shows the operating power plants of the SEN by type of technology and the National Transmission Network. It is possible to visualize the information of each power plant by clicking on the point that represents it:
Institutional Arrangement
In terms of infrastructure, Mexico has a defined strategy that offers investors medium and long-term visibility regarding the development of projects, through a series of plans and programs of national and sectorial scope. To access the information, please consult the following documents:
National Electric Power System Development Program 2024-2038
Energy Sector Program 2020-2024
Description of the hierarchy and roles of the different entities and actors involved in the sector, including how the different institutions and agencies coordinate and collaborate.
Legal system
The compilation of international treaties, laws, regulations, decrees, agreements, and federal, state, and municipal provisions presented here are for informational purposes and intended to facilitate their consultation:
SENER / CFE
Public Works and Related Services Law
Electricity Sector Law
State-Owned Enterprise Law – Federal Electricity Commission (CFE)
Planning and Energy Transition Law
National Energy Commission Law
Electricity Industry Law
Geothermal Energy Law
Source: Prodesen 2024-2038
Investment cycle
The following section provides an overview of the project development process from initial planning to final execution.
1
2
3
4
5
6
7
8
9
10
1
Planning
Based on the objectives and strategies defined in the National Development Plan 2019-2024 and the Sectoral Energy Program 2020-2024, plans are developed to ensure an adequate transmission of electricity that allows for the maximum utilization of resources and meets demand. The information contained in the National Electricity System Development Program (PRODESEN) spans from the planning of the National Electricity Sector to the operational conditions of electricity generation and transmission, as well as the expansion and modernization program for the national transmission grid.
2
Identification
SENER, CENACE and CFE identify power generation projects to be developed, based on planning documents.
3
Structuring
CFE prepares, by itself or by means of third parties, the necessary pre-investment studies and analysis, required for the development of power generation projects.
4
Registration
CFE submits the request for registration of generation projects that require federal public resources in the portfolio through the Commission’s Board of Directors.
5
Prioritization
Projects requiring federal budget resources must be analyzed by SENER, with technical recommendations from CFE, CENACE, and CRE, who determine the prioritization for their inclusion in the Federal Expenditure Budget (PEF).
6
Authorization
According to the guidelines outlined throughout this chapter, the approval of an Investment Project Proposal (PPI) goes through the following stages:
First: Integration of the PPI into the Planning Mechanism, an instrument that consolidates the investment needs identified by the Companies, based on a technical, economic, and financial evaluation at the pre-feasibility level, for the short, medium, and long term.
Second: Upon request from each Company, the PPI is analyzed individually based on economic, technical, financial, and risk criteria.
Third: When it is demonstrated that a PPI is profitable and strategically advantageous, it will be presented to the Investment Committee for consideration and approval. If the PPI is high-risk and affects the financial balance of CFE, the Investment Committee must submit it to the Strategy and Investment Committee for further consideration and approval by the Board of Directors.
7
Promotion
SENER, CRE and CFE are responsible for the promotion of the projects.
8
Bidding
It is managed by the CFE, following the technical guidelines of SENER, CRE and the fiscal economic conditions established by SHCP. The terms of reference can be consulted on the CRE and CFE websites.
9
Financing
Different sources of funds are available for the projects, depending on their particular characteristics and their financial structure, including federal funds or PEF, and funds from development banks, commercial banks, institutional and private developers, FIBRA E and from institutional investors.
10
Execution and Operation
Carried out by awarded operators and/or developers, under the surveillance of CFE, according to contract terms and guidelines set by the CRE.
Projects
Information on new projects (pre-investment, bidding and execution) and in operation within the Mexico Projects Hub platform, which at some stage of the project were considered investment opportunities and do not necessarily have Banobras / Fonadin participation.
New Projects
Projects in Operation
Strategic Projects
Banobras / Fonadin
Project Finance: In order to support the financing of infrastructure projects and public services, the Project Finance Unit structures financing supported by the granting of loans and guarantees to those projects developed as Public-Private Partnerships and which have their own source of payment from the exploitation of the concession or public contract or from the collection of the service in question. The Public-Private Partnership schemes may be Federal and/or Local, in their different modalities, such as: Concessions, Service Provision Projects (PPS) or Financed Public Works Contracts, among others.- The Platform has more than 600 investment opportunities in all its stages, with visits from more than 180 countries and more than 40,000 users per month.
Financing for States and Municipalities and Decentralized Public Organizations: The products and services are designed to meet the infrastructure needs of states, municipalities and their decentralized public organizations, in order to improve the quality of life of the population and increase competitiveness.
Infrastructure is a pillar of development, which is why Banobras has innovative products and services focused on contributing to regional development through the promotion of financial mechanisms to:
Boost investment in infrastructure and public services.
Promote the financial and institutional strengthening of states, municipalities and decentralized public agencies.
To this end, Banobras has the following financing schemes:
Products:
Project Development: Banobras offers services aimed at assisting public sector agencies and entities in the development of infrastructure projects.
Financial structuring of the project:
- Elaborate and/or update studies required by the Public-Private Partnerships Law.
- Support in the review of the bidding conditions and contract model.
- Assist in obtaining financing for the project.
- Assist in the registration process of the project in the portfolio of the Investment Unit of the Ministry of Finance and Public Credit (SHCP).
- Assist in dealing with any observations made by the SHCP Investment Unit.
- Support in the financial closing of the project.
The purpose of the Fondo Nacional de Infraestructura (Fonadin) is to serve as the Federal Public Administration’s coordination vehicle for infrastructure investment. It has one of the largest road concession networks in the world and manages the granting of financial support for infrastructure development, mainly in the areas of communications, transportation, water, environment, energy, tourism, urban and strategic and priority areas, supporting the planning, promotion, construction, conservation, operation and transfer of infrastructure projects with social impact and economic or financial profitability.
It has a wide range of products designed to strengthen the financial structure of the infrastructure projects that the country requires, from the conception to the completion of the projects, providing the following financial instruments that make the projects more attractive for financing with private resources:
Recoverable Support
- Simple Credits
- Subordinated Credits
- Guarantees
- Investments in Venture Capital Funds
- Infrastructure Trust Investments
- Financing of Studies and Advisory Services
Non Recoverable Support
- Contributions for Studies and Consultancy
- Contributions for Projects
- Project Grants
Contact: fonadin.energia@banobras.gob.mx
Sustainability
Banobras makes available to interested parties, analysis sheets for the detection of sustainability practices in infrastructure projects, in accordance with the methodological framework “Attributes and Framework for Sustainable Infrastructure” of the Inter-American Development Bank (IDB). Its objective is to highlight sustainable practices, encourage their adoption in future projects and provide relevant information for investors in their economic, environmental, social and institutional dimensions.
To review the projects that already have a sustainability record, select the “SEARCH CRITERIA>” option in the PROJECTS section, and then select “With Sustainability Analysis” at the end of the criteria; the projects that have a record will be displayed below.
In addition, Banobras offers an analysis tool that presents the potential relationship of the different infrastructure projects of the Mexico Projects platform with the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda and their targets. This comparative analysis facilitates the use of data according to different criteria, such as the potential impact of projects and sectors against national and global development goals.
The comparison is only made between projects in the same subsector. To select and consult here.
The alignment of a project with the SDGs provides information on the degree of focus on sustainability; it provides a comparison between projects in the same sector and sub-sector and facilitates investment decisions, showing the highest and lowest alignment of projects to the SDGs. Comparative analysis facilitates the use of data according to different criteria, such as the potential impact of projects and sectors against national and global development goals.
In the case of the sector, 40 projects are identified in the platform that have sustainability practices detection sheets, which allows to know, among other things, the projects with more and better alignments to the SDGs. For more information, access the Sustainable Development Goals application:
Greater alignment of the sector:
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 11: Sustainable Cities and Communities
- SDG 7: Affordable and Clean Energy
Reduced alignment of the sector:
- SDG 14: Life Below Water
- SDG 10: Reduced Inequalities
- SDG 17: Partnerships for the Goals
Ally Networks
Banobras, through its Ally Networks application, provides information on companies participating in competitive public procurement processes for infrastructure projects in Mexico, based on official sources such as ComprasMX. It includes details on investment amounts, number of participations in bids, projects awarded, consortiums, and business associations, which allows the user to identify potential actors for the establishment of investments in the country.
To consult the projects that have information on the participating companies, select the option “SEARCH CRITERIA>” in the PROJECTS section, and then select “With applicant companies” at the end of the criteria.
In the application, you can consult on the sector:
- 11 projects
- 50 companies
- 18 consortiums
Reference documents:
This section offers documents, reports and reports with technical, statistical and regulatory information on the sector:
Official statements:
2025
- Apr. 9, 2025 Ministry of Energy: The Government of Mexico presents the actions to be undertaken by the electricity sector to strengthen and accelerate the México Plan.
- Mar. 18, 2025 Official Gazette (DOF): DECREE issuing the Law on State-Owned Enterprises: Federal Electricity Commission; the Law on State-Owned Enterprises: Petróleos Mexicanos; the Electric Sector Law; the Hydrocarbons Sector Law; the Energy Planning and Transition Law; the Biofuels Law; the Geothermal Law; and the Law of the National Energy Commission. The decree also amends various provisions of the Mexican Petroleum Fund for Stabilization and Development Law, and reforms, adds, and repeals several provisions of the Organic Law of the Federal Public Administration.
- Feb. 5, 2025 Government of Mexico: The President presents 51 electricity projects under the 2025–2030 National Electric System Strengthening and Expansion Plan.
- Jan. 29, 2025 Ministry of Energy (SENER): Secondary Energy Legislation – PEMEX and CFE as the people’s companies of Mexico.
2024
- Government of Mexico: CFE and PEMEX return to the people of Mexico: President signs secondary laws that overturn the 2013 energy reform.
- Official Gazette (DOF): Decree amending, adding, and repealing various provisions of the Political Constitution of the United Mexican States on organizational simplification.
- Official Gazette (DOF): DECREE amending the fifth paragraph of Article 25, the sixth and seventh paragraphs of Article 27, and the fourth paragraph of Article 28 of the Political Constitution of the United Mexican States, concerning strategic areas and enterprises.
- CFE: 2024 National Electric Sector Strategy.
Additional information:
