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DESIGN, CONSTRUCTION, EQUIPMENT, INSTALLATION, OPERATION AND MAINTENANCE OF A GEOTHERMAL POWER PLANT IN THE STATE OF MICHOACAN.

Sector: Electricity


Last Revision

September 15, 2025
Power Auction:
SLP-1/2016: Second Long Term Power Auction
 
Short Name of the Project:
0539 CENACE: 2nd Long Term Power Auction (SLP-1/2016) Azufres III Fase II Unidad 18
Type of Investment:
Brownfield
Subsector:
Geothermic Power
Asset (s):
 Geothermal Fields 252 MW 
Contract Currency:
Mexican Pesos MXN
Estimated Investment MXN:

5,400,000,000

Estimated Investment USD:

291,891,891

Exchange rate (USD/MXN) used by the Ministry of Finance for the economic plan 2025: $ 18.5
Contract Scope:
  Construction,  Equipment,  Installation,  Operation,  Maintenance
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DESCRIPTION
The project consists of the design, construction, equipment, installation, operation and maintenance of Azufres III Fase II Unidad 18 geothermal power plant with a total production capacity of 252 MW in the state of Michoacan. The plant has the following features:
Power Zone: National
Export Area: “Occidental”
Export Subarea: “Occidental -Guadalajara/Carapan”
Price Area: Carapan
Interconnection Zone: AZUFRES SWITCHEO AZS-115

Comisión Federal de Electricidad (CFE), was assigned the following contract through CENACE's 2016 long-term power auction:

Contract number: SLP2016010066-01,related to:
- Power for 25 MW/Year, during 15 years, Energy for 198,764 MWHr/Year during 15 years and Renewable Energy Certificates (CEL) for 198,764 CEL/Year during 20 years, with an offered price of MXN$162,891,111

LEGAL AND FINANCIAL STRUCTURE
Type of Project
  Public
Type of Contract
  Assignment
Term
15 years
Selection Process
Public Auction
Financing Sources
Private
100 %
MXN
5,400,000,000
USD
291,891,891
Payment Source
Project revenues
Electric Coverage Contract between “Suministro Básico” (Public Service Regulatory Entity) and the Generator.

STATUS
Stage
  Operation
Substage
  > 5 years of operation
RELEVANT DATES
Request for proposals/Announcement April 29, 2016
Proposals Reception August 01, 2016
Ruling September 28, 2016
Operation Starting Date September 01, 2018
Term of the Contract 2033
Contractor
Comisión Federal de Electricidad  
Major Contractor’s Shareholders
CFE

GEOLOCATION
State(s)
Michoacan   
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Entity in charge of controlling the possession of communal land, as well as providing documentary legal security derived from the application of the Agrarian Law, and is the operator of the Geospatial Information System (SIG).

SPONSOR
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Entity
Comisión Federal de Electricidad
Department
Empresa Productiva Subsidiaria Generación
WebsiteInstitutional Arrangement

SUSTAINABLE INFORMATION
imagen sostentabilidad
Sustainability Datasheet

PROJECT’S SUSTAINABILITY SUMMARY

The project consists of the use of geothermal energy for electricity generation with a total capacity of up to 252.36 MW, with an estimated annual production of 1,890 GWh, equivalent to avoiding the consumption of 3 million barrels of oil per year, benefiting 11 million people. population.

* This summary was prepared based on the methodological framework defined by the Inter-American Development Bank (IDB) in the document entitled: “Attributes and Framework for Sustainable Infrastructure”, which is You can check Here.

Additionally, a brief explanation of the methodology and a summary of the questions applied can be consulted in this Document.

DOCUMENTS USED:

ADDITIONAL INFORMATION
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Source
Secretaría de Medio Ambiente y Recursos Naturales
Description
Federal government entity and sectorial authority responsible for establishing the necessary criteria and instruments to guarantee the protection, preservation, and use of natural resources, by developing an environmental policy that ensures sustainable growth.
ID
16MI2010ED022
Procedures
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Source
Centro Nacional de Control de Energía
Description
Public entity whose objective is to exercise operational control over the national electric system and the operations of the wholesale electricity market, and to guarantee impartial access to the national transmission network and to the general distribution network
Website
 Ruling 2016
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Source
Comisión Nacional de Energía
Description
Decentralized body of the Ministry of Energy that has technical and operational independence to regulate energy matters.
ID
E/1581/GEN/2015
Permit
ID
RES/2731/2017
Resolution

MULTIMEDIA

REMARKS
The operational date is indicated in Resolution RES/2731/2017 and refers to the date of operation of the steam turbine, coupled to a generator with a capacity of 27.36 MW.

The power plant has been in operation since September 14, 1982, with a capacity of 225 MW.
0538 CENACE: 2a Subasta Eléctrica de Largo Plazo (SLP-1/2016) Santa María 0570 CENACE: 2a Subasta Eléctrica de Largo Plazo (SLP 1/2016) Solem I

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