Cubico, CFE Sign US$1 Billion Renewable Energy Joint Venture

The joint venture between Cubico Sustainable Investments and CFE establishes a US$1 billion framework to deploy 578 MWac of renewable capacity and 500 MWh of battery storage under Mexico's March 2025 Secondary Energy Legislation. This 25-year public-private partnership signals a structured path for private capital investment aligned with state-led planning to address nearshoring-driven power demand across Tamaulipas, Nuevo Leon, Campeche, and the Yucatan Peninsula. The agreement directly affects private energy developers, grid operators, and industrial consumers navigating Mexico’s updated public-private regulatory environment.

______ 

UK-based Cubico Sustainable Investments and CFE signed a Joint Venture Agreement (JV) to formalize a 25-year public-private partnership aimed at developing 578 MWac of renewable energy capacity across Mexico. The company considers the upcoming portfolio a testament to what can be achieved through public-private synergies.

Cubico noted that the agreement encompasses five projects previously awarded to Cubico under CFE’s Mixed Investment Scheme. In addition to the generation assets, the agreement includes 175.7MW of battery energy storage capacity with a three-hour duration, totaling 500MWh. The total investment associated with the framework is estimated at nearly US$1 billion. 

The developments will be located in the states of Tamaulipas, Nuevo Leon, Campeche, and the Yucatan Peninsula. Construction on the initial project, Altamira Solar in Tamaulipas, is scheduled to start in December 2026, while construction on the remaining four developments is planned for 2Q27. 

“The signing of this agreement is a major milestone for us and demonstrates what can be achieved when the public and private sectors work together towards a shared objective,” stated Jens-Peter Saul, CEO, Cubico Sustainable Investments, adding that the partnership will help Cubico and CFE to deliver the infrastructure needed to support Mexico’s growing energy needs, attract investment and create long-term value for communities across the country.

Osvaldo Rance, Country Manager, Cubico Sustainable Investments, noted that the company’s focus will now center on project delivery in coordination with local communities, CFE, and relevant stakeholders. “This agreement represents the culmination of many years of work by our team in Mexico and marks the beginning of an exciting new phase for these projects,” he said.

Altamira Solar Farm: Cubico’s First Project to Deliver 

The initial asset in the JV with CFE is the Altamira solar farm in Tamaulipas, representing a US$100 million investment and delivering 100 MW of capacity.

Preparatory technical work for the installation is already underway. Cubico, alongside Tamaulipas’ Ministry for Energy Development (SEDENER) and the Altamira municipal government, recently installed a solar resource measurement tower on over 180ha of private land in the Puerto Altamira region. Over the coming months, technical teams will analyze high-precision solar radiation and local weather data from the tower to optimize panel placement and configure the electrical layout before construction begins in December 2026.

Once operational, the plant is expected to generate over 200,000 MWh of clean energy annually, supplying local residential, commercial, and industrial demand while supporting operations for the National Port System Administration of Altamira (ASIPONA).

“The project aligns with Tamaulipas’ clean energy goals and the UN’s 2030 Sustainable Development Agenda, reinforcing Cubico’s commitment to supporting Mexico’s energy transition and building a more secure, climate-resilient energy system,” read Cubico’s announcement of the development.

Beyond this pipeline with CFE, Cubico already manages around 600MW of fully operational assets, including the 250 MW Mezquite wind farm in Nuevo Leon and the 348MW Solem solar complex in Aguascalientes. In addition, strategic acquisitions have expanded the firm's broader development pipeline in Mexico to over 1.5GW across various regions. 

Public-Private Alignment Defines Mexico’s Energy Framework

Since the March 2025 Secondary Energy Legislation defined the terms of President Claudia Sheinbaum’s energy reform, the energy sector has operated within a framework where state leadership by CFE is complemented by structured private sector participation. Under this structure, energy is treated as a strategic public asset, prompting private developers to align their project pipelines with state planning to address electricity demand driven by nearshoring and industrial growth 

“The good news is that private investment is still possible, and highly needed, but it must now be aligned with the federal government's strategic plans,” said Francisco Cruz, Director of Energy, Kannbal Consulting, in an MBN Expert Contributor piece.

During the Mexico Energy Forum 2025, Carla Medina, President, ASOLMEX, said that operating successfully in this environment requires companies to adopt collaborative models that fit within state-led development goals. “That, to me, sets the most important challenge in terms of the mindset of companies of different sizes, so they can optimize and capitalize on the opportunities opened by the new legal framework,” she added.

Despite state dominance under SENER-led policy planning, Cruz emphasizes that the sheer scale of national energy demand makes private participation indispensable. He points out that while Public-Private Partnerships (PPPs) and state-preferred mixed contracts serve as vital bridging vehicles, successfully deploying them for complex projects, such as deepwater extraction, unconventional reservoirs, or high-capacity grid infrastructure, requires practical flexibility. To attract experienced, technology-bearing operators, Cruz stresses that these structures must establish transparent risk-sharing, reliable payment mechanisms from state entities, and clear contractual protections. 

Cruz further notes that navigating Mexico's current energy landscape demands a high degree of commercial pragmatism. While federal policy maintains state control over key assets, structured public-private alliances offer a viable path to deliver critical infrastructure, mitigate execution risks, and secure long-term capital deployment in a competitive global market. “Companies interested in participating in public sector partnerships should prioritize contractual security, operational control, and collaborative relationships to ensure investment returns and long-term viability,” he concludes.