CFE Publishes Mixed-Contract Guidelines

CFE published the mixed-contract guidelines Official Gazette, signaling a strategic shift in how Mexico’s state power utility will work with private companies to develop power-generation and related infrastructure projects. The announcement, formalized on Jan. 28, 2026, is expected to unlock new avenues for public-private collaboration while aligning with the broader energy policy goals of the government of President Claudia Sheinbaum.

The guidelines, officially known as the Guidelines for Mixed Development, establish the regulatory and procedural framework that CFE will use to form partnerships with private investors. These partnerships allow shared investments, costs, risks and operational responsibilities in electricity generation projects that support the country’s power infrastructure, while ensuring projects comply with national planning and energy transition objectives.

Under the new guidelines, CFE will be able to enter into mixed contracts through competitive public tenders, restricted invitation schemes or direct contract awards, each with specific criteria designed to balance transparency and efficiency. The documents stipulate that prospective projects must adhere to technical and economic parameters under SENER’s Binding Energy Planning framework, and must promote reliability, accessibility, sustainability and security in the National Electric System (SEN).

Applying mixed-contract schemes requires a detailed economic analysis, including cash-flow projections, costs and revenue expectations that demonstrate sustainable financial viability for both CFE and private partners. A Mixed Development Group (GDM), composed of representatives from CFE and other government bodies, will evaluate technical feasibility and financial viability before any project moves forward.

The utility clarified that, in addition to financial sustainability, these agreements must include key legal and operational elements such as corporate governance structures, contract enforcement mechanisms, dispute-resolution clauses, and clear definitions of rights and obligations for each party. The new framework ensures that mixed contracts can support CFE’s objectives without compromising the company’s institutional integrity.

The publication of mixed-contract guidelines comes at a critical moment in Mexico’s energy landscape. The government has been actively reshaping regulation to promote strategic public-private investment while maintaining state controlling interests in key sectors. Mixed contracts are expected to play an increasingly important role in Mexico’s energy investment strategy, particularly for mature fields or infrastructure projects where private capital and expertise can complement state-led efforts.

The concept of mixed contracts intersects with broader discussions on private participation under Mexico’s recent energy reforms. In 2025, Mexico introduced new sector rules that not only reaffirmed the foundational regulatory structure but also integrated mixed participation schemes into the broader market design. These rules aim to streamline approvals and coordination across regulators, creating clearer pathways for joint projects between CFE and private investors.

One key advantage of the new guidelines is that they provide a bankable legal framework that can attract institutional investment into long-term power generation and related infrastructure. In practice, this could catalyze larger projects in renewable energy, flexible generation, storage, and grid modernization, areas seen as essential for Mexico’s energy transition and economic growth.

Industry stakeholders have welcomed the guidelines as a step toward reducing investment uncertainty in Mexico’s electricity sector. Mixed contracts are seen as mechanisms that preserve national oversight while leveraging private capital and technology, potentially improving project delivery timelines and operational performance.

The guidelines also come against the backdrop of Mexico’s planned public-private investment strategy, aimed at mobilizing capital across critical sectors, including energy. President Sheinbaum’s administration has promoted public-private partnerships as essential components of national development plans, emphasizing balanced risk sharing and public control in strategic infrastructure while encouraging private actors to bring capital and efficiency to the sector. These initiatives have been highlighted in recent coverage of Mexico’s broader investment plans. 

Despite the promise, challenges remain. Critics note that even with clear guidelines, private investors may still face barriers related to regulatory complexity, long-term policy certainty, and competition with state institutions that retain significant market influence. Moreover, while mixed contracts provide a framework, success will depend on the first wave of implemented projects, as these will set market expectations and establish precedents for future investment.The mixed-contract framework also raises questions about the balance between encouraging private involvement and ensuring that projects align with national energy priorities such as system reliability, energy sovereignty, and equitable access to electricity across regions, particularly underserved areas.

Mexico’s mixed contract effort reflects a broader trend in global energy markets where governments seek to blend public stewardship with private capital efficiency. For CFE, the guidelines represent an important operational and strategic tool that can help modernize the power sector and support Mexico’s electricity needs in the coming decade. As private investors evaluate opportunities under these new rules, mixed contracts could become a cornerstone of joint projects that drive capacity expansion, infrastructure modernization, and the overall resilience of the Mexican electricity system.