CFE Announces Transmission Projects

Mexico's Federal Electricity Commission (CFE) faces growing pressure to bolster its capabilities to meet the rising energy demands with the advent of nearshoring. The relocation of Asian companies to Mexico increases the urgency to develop and expand this crucial infrastructure. CFE recognized this pressing need and has begun to define and execute a series of transmission line projects as part of the National Electric System Development Program (Prodesen), mandated by the Ministry of Energy (SENER).

Nearshoring has emerged as a significant trend in recent years, whereby companies from Asia are increasingly choosing to relocate their operations closer to Mexico. The advantages of this approach are manifold: reduced transportation costs, shorter supply chains and easier access to the thriving North American market. As a result, Mexico has become an appealing investment destination for these companies seeking to establish a foothold in the region.

For these new businesses to thrive in Mexico, a stable and reliable energy supply is an absolute necessity. Hence, there is an acute need to augment the country's power transmission network. In recognition of this pressing need, CFE is pursuing authorization of the following projects:

Leona Vicario Entq, Dzitnup-Riviera Maya (Quintana Roo). Located in the municipalities of Benito Juarez and Puerto Morelos in Quintana Roo, this transmission line will span 39.01km and be supported by steel towers. Its primary objective is to transmit electrical energy at a nominal voltage of 400kV in two circuits. In addition, this initiative aligns with the National Electric System Development Program for the years 2022-2036.

Kantenah Entq, Dzitnup-Riviera Maya (Quintana Roo). Stretching over 42.7km, this transmission line will be situated in the municipalities of Solidaridad and Puerto Morelos in Quintana Roo, near Playa del Carmen. Operating at a nominal voltage of 400kV, it aims to contribute to the goals of expanding and modernizing the National Transmission Grid.

Las Mesas-Huejutla II (San Luis Potosi and Hidalgo). Covering a distance of 45.9km and operating at an operating voltage of 115kV, this transmission line will be positioned in the municipalities of Tamazunchale and San Martín Chalchicuautla in San Luis Potosi and Hidalgo. The project intends to cater to the growing energy demands of the Tamazunchale and Huejutla region while promoting sustainable development and environmental protection.

Las Mesas (Tamazunchale)-Jilotepec Potencia (State of Mexico, Hidalgo and San Luis Potosi). This 186.7km double-circuit 400kV transmission line will traverse the State of Mexico, Hidalgo and San Luis Potosi. Given the region's increasing electricity demands, this project is a top priority in expanding electrical infrastructure to ensure a reliable power supply.

Culiacan Poniente-Mazatlan Dos (Sinaloa). Spanning a total length of 253km, this transmission line will carry a 400kV double-circuit voltage. It will connect the Culiacan Poniente and Mazatlan Dos substations, serving the power needs of the northern, northwest and western regions of Mexico.

Mazatlan Dos-Tepic Dos (Sinaloa and Nayarit). Covering a total length of 257.4km, this transmission line will carry a 400kV double-circuit voltage and will connect the Mazatlan Dos and Tepic Dos substations, passing through several municipalities in Sinaloa and Nayarit. The project is deemed necessary to accommodate the projected increase in energy demand in the region.

These transmission lines are critical to ensuring a seamless and uninterrupted flow of electricity to meet the increasing energy demands driven by the influx of new businesses. The estimated investment required for the development of these six transmission lines is about MX$1.8 billion (US$107 million). As Mexico positions itself as an attractive destination for businesses from Asia through nearshoring, ensuring a robust and reliable energy infrastructure becomes a fundamental pillar of the country's economic growth and prosperity.