Billionaire Investment Needed in Plants, Transmission Lines: ICC

For Mexico to sustain an annual GDP growth of 2.4% over the next 15 years, an investment of MX$2 trillion (US$112 billion) is necessary, said the International Chamber of Commerce Mexico (ICC México). This funding will be allocated to deploy approximately 59,000km of power transmission lines and develop infrastructure capable of generating over 100GW of energy.

"For every percentage point of GDP growth, 800km/y of transmission lines must be developed," stated ICC Mexico, emphasizing the need for infrastructure development in combined cycle plants and renewable energy facilities, particularly those based on solar and wind power.

CFE aims to conduct two major tenders before President Andrés Manuel López Obrador's term concludes in October 2024. These tenders, focused on the Yucatan peninsula and the northeastern states of Sinaloa, Nayarit, and Sonora, are expected to result in the construction of over 4,000km of transmission lines. Despite being crucial for the country's growth, these projects were initially scheduled for completion two to three years ago. Authorities are now expediting the process, urging interested companies to comply with tight schedules, highlighted Salvador Portillo Arellano, President, CANAME.

Recently, CFE orchestrated a comprehensive roadshow, extending invitations to key contractors, manufacturers, and suppliers to showcase five transmission projects earmarked for tendering in the Yucatan Peninsula. Among these projects, an interconnection endeavor labeled "I19 Contests 1, 2, and 3" aims to bridge the northeast and center of the country.

The Yucatan Peninsula projects zeroing on amplifying transmission capacity in the Cancun and Riviera Maya II (Leona Vicario) regions, financed through the Deferred Long-Term Expense Payment (Pidiregas) scheme. Moreover, CFE proposed augmenting transmission capacity through the I19 Contests 1, 2, and 3 as part of the Pidiregas initiative.

CFE emphasizes that these initiatives' development is pivotal for meeting rising demand, safeguarding and enhancing the Reliability of the National Electric System (SEN), and optimizing voltage regulation in the northeast, central, and peninsula areas, particularly in the Riviera Maya. The anticipated outcomes encompass facilitating an efficient expansion of generation, implementing smart grid technologies, and reducing overall production costs.

On the other hand, Sonora is poised to emerge as a pivotal player in Mexico's renewable energy landscape, showcasing itself as a model for political initiatives driving the nation's energy transition, as highlighted by Governor Alfonso Durazo. The state's strategic infrastructure plans are strategically designed to optimize its abundant geographical advantages, focusing on energy and logistics.

At the core of Sonora's potential lies its expansive solar-rich potential, spanning 179,000km², coupled with an 800km coastline along the Gulf of California and an extensive 580km border with the US, specifically with Arizona and New Mexico. Leveraging these geographical assets, Sonora has embarked on the implementation of the ambitious 'Northwest Gate' infrastructure development strategy, aiming to maximize the benefits derived from its unique characteristics.

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