20 Generation Projects Advance in Mexico

The government granted 20 new power generation permits to national and international companies following a call that concluded in December 2025. The authorizations, issued under the administration of President Claudia Sheinbaum, signal a cautious but tangible move to advance long-delayed energy investments amid growing pressure from business leaders to unlock stalled projects and provide greater clarity to the sector.

According to information reported by Bloomberg Línea, the permits were granted to a mix of domestic developers and foreign-backed firms, with renewable energy projects dominating the list. Among the most prominent beneficiaries is Green Park Energy, an Iberdrola subsidiary, which received two 25-year permits for solar photovoltaic plants with capacities of 122MW and 107MW. The projects, Tecozautla and El Toro, are located in the states of Hidalgo and Guanajuato, respectively, and are authorized to participate in the Wholesale Electricity Market.

Sunstone Power, backed by Danish fund Copenhagen Infrastructure Partners, also emerged as a key winner. The company secured two permits totaling 1,044MW for the La Alegría and La Esperanza solar projects in Campeche. These plants are expected to begin operations in June 2028, positioning CIP as the developer with the largest awarded capacity in this first permitting round and reinforcing the role of foreign capital in Mexico’s energy transition.

In total, the 20 permits represent an installed capacity of 3,320MW and an estimated investment of US$4.75 billion. This figure, however, is around 34% below the government’s initial projections, underscoring the more measured scale of this first call and the continued uncertainty surrounding the regulatory and financial environment for new generation projects.

The list of approved companies includes a wide range of solar and wind developers such as ALTEN Energías Renovables México Once, CGS Solarmex I, Eólica Dzilam, Saturno Solar, Akuwa Solar, Delfín Solar, Zapoteca de Energía, EPM Eólica 24, Energía Solar Herrera, Vientos de Panabá, Global Solar America 2, Eólica del Rocío, PV Tamesí Solar SG and Martil Solar. The diversity of participants reflects pent-up interest from the private sector after years of limited permitting activity.

Government documents published days after the announcement revealed that two applicants withdrew from the process, relinquishing permits equivalent to 230MW for reasons described only as being in their own interests.

A critical next milestone will come on Jan. 31, 2026, when the awarded companies must sign interconnection contracts with the National Energy Control Center (CENACE) and submit letters of credit to support their financial structures. Failure to meet these requirements could delay or derail projects, making this step a key test of how many of the announced investments ultimately move into construction.

The announcement comes amid growing calls from Mexico’s business community to accelerate strategic energy projects. Industrial leaders and energy executives have repeatedly warned that delays in generation capacity, grid expansion and permitting threaten the country’s competitiveness, particularly as nearshoring drives electricity demand higher in manufacturing hubs. They have urged authorities to provide clearer rules, faster approvals and stronger coordination between energy agencies.

While the Sheinbaum administration has emphasized the central role of state-owned companies and public planning, these new permits suggest an attempt to strike a balance between state control and private participation, particularly in clean energy. Analysts note that allowing private renewable projects to advance could help relieve pressure on public finances, reduce emissions and support supply to energy-intensive industries.

At the same time, the relatively lower-than-expected investment volume and the long timelines for project completion indicate that confidence has not fully returned. Developers remain attentive to how secondary regulation, grid access decisions and future permitting rounds will evolve under the new administration.

Still, the granting of these 20 permits marks one of the most concrete signals in recent years that Mexico is reopening a pathway for private investment in power generation. Whether this first step leads to a broader revival of the sector will depend on execution in the coming months, particularly the ability of projects to reach financial close and move from paper approvals to steel in the ground.