CFE Advances Transmission, Distribution Plans

CFE announced progress in the improvement and modernization of the National Transmission and Distribution System as part of a broader strategy to anticipate sustained growth in electricity demand and strengthen the reliability of the National Electric System. The update was delivered by CFE’s Director General, Emilia Calleja, during the presidential morning conference led by President Claudia Sheinbaum, alongside Energy Minister Luz Elena González.

Calleja explained that the projects are defined under the Electricity Sector Development Plan, PLADESE, which replaces the former PRODESEN and establishes long-term planning criteria for generation, transmission and distribution. For the 2025 planning exercise, the PLADESE identifies 15 expansion projects and two modernization projects for the National Transmission Network and General Distribution Networks, distributed across multiple regions of the country. The objective is to remove bottlenecks, reinforce existing infrastructure and ensure that the grid can support rising industrial, urban and productive activity.

At the core of the announcement is a portfolio of 66 transmission projects with an estimated investment of US$1.9 billion, equivalent to nearly MX$36 billion, scheduled for priority execution in 2025 and 2026. According to CFE, 22 projects are planned for 2025 and 44 for 2026, with tenders and publication processes staggered throughout both years. These investments are designed to improve system reliability and provide the backbone required to integrate new generation capacity as electricity demand grows.

CFE’s transmission plan is closely linked to a broader expansion strategy that includes firm generation and clean energy projects. Calleja detailed five firm generation projects that will add close to 3,000MW of capacity, supported by an investment of US$4.3 billion. These projects, located in Hidalgo, Guanajuato, Tamaulipas, Sinaloa and Baja California Sur, are intended to provide geographic balance and operational resilience to the system. The company has already begun development of the Francisco Pérez combined-cycle plant in Tula, marking the first generation project of the current administration and a key element of the government’s energy transition and decarbonization agenda.

Clean energy projects are also advancing, particularly the Puerto Peñasco photovoltaic complex in Sonora, which will reach a total capacity of 1,000MW once all phases are completed. Additional solar projects in Coahuila and a group of renewable projects under evaluation with FONADIN further illustrate CFE’s intention to combine firm capacity with clean generation, while ensuring grid stability through storage and strategic siting.

The announcement comes amid mounting pressure on Mexico’s electric system driven by sustained demand growth. According to analysis from the Mexican Institute for Competitiveness, IMCO, national electricity consumption reached nearly 360,000GWh in 2024, with annual growth of 2.3%, in line with the average projected growth of 2.5% over the next 15 years. Peak demand is expected to rise more than 50% by 2039, a trend that will require not only additional generation but also robust transmission and distribution infrastructure to manage critical consumption periods.

IMCO also highlights a structural challenge. Public investment in the electricity sector is declining in real terms. Investment assigned to CFE for 2026 is expected to be significantly lower than in 2025 and well below the average annual investment estimated as necessary to meet system needs. Under this scenario, the success of the PLADESE hinges on timely execution of transmission projects and the effective integration of private investment to complement public resources.

Calleja acknowledged this context and emphasized that CFE’s planning decisions are technical and forward-looking, aimed at guaranteeing sufficient, reliable and continuous electricity supply. She also reiterated the government’s invitation for Mexican industry to participate in these projects, with an emphasis on increasing national content and ensuring transparency and legal certainty.

As electricity demand continues to rise due to nearshoring, electrification of industry and climate-related consumption peaks, the modernization of Mexico’s transmission and distribution networks is becoming a central pillar of energy policy. The pace at which these projects are executed, and their ability to integrate new generation capacity, will be critical to maintaining system reliability and supporting economic growth over the coming decades.