CFE Invests MX$333 Billion in Power Generation, Infrastructure

CFE and the government have invested approximately MX$333 billion (US$19.31 billion) throughout the current administration, with an annual average of MX$55.5 billion, according to the utility’s statement released today. These investments have funded the development of 35 generation projects, the acquisition of 13 former Iberdrola plants, and the financing of 60 transmission projects and 41 distribution projects, as detailed in a press release.

In 2023, five transmission projects were completed with a total investment of MX$321 million. Additionally, 26 works were carried out, with an investment of MX$14.5 billion. Regarding distribution, 17 projects were completed during the same period with an investment exceeding MX$1.133 billion. Progress was also made on other projects with planned investments of over MX$4.7 billion. Currently, the generation system has a total capacity of 87,275MW, of which approximately 59% is used, equivalent to 51,406MW, according to CFE. The company clarified that it continues to strengthen its electrical infrastructure, including its generation facilities and transmission and distribution lines.

The CFE press release follows a report from the Mexican Institute for Competitiveness (IMCO), which urged the incoming administration to invest in electricity generation capacity and power grids. The institute highlights that the demand for electricity is increasing more rapidly than investments in these areas, emphasizing the critical need to ensure energy security in Mexico.

IMCO highlights that electricity demand will continue to grow, stressing the need for the new government to sustainably increase generation capacity without straining public finances. The institute argues that addressing this issue is crucial for welfare, competitiveness, development, environmental protection, and national security. IMCO recommends ensuring regulatory independence, allowing CFE to collaborate with private companies on generation projects, and strengthening state energy agencies to boost local investment in electricity generation, as reported by MBN. 

Claudia Sheinbaum, from the outset of her political campaign and through the Shared Prosperity plan, has announced an investment of MX$55.4 billion for transmission projects through 2025. This investment will take place between October 2024 and December 2025, with the aim of completing 44 projects to strengthen transmission lines, resulting in an additional capacity of 8,548MVA.

Similarly, Oliver Probst, Researcher, Tecnológico de Monterrey, mentions that between 2024 and 2026, CFE is expected to add 8,392MW of new capacity, covering both fossil and renewable sources. Of this total, however, 7,699MW will come from fossil sources, while only 693 MW will be from clean energy. In contrast, the private sector is anticipated to add 3,581MW of new renewable capacity, with minimal increases in fossil capacity.