Government Announces US$22.3 Billion Electricity Expansion Plan

President Claudia Sheinbaum presented the Plan for Strengthening and Expanding the National Electric System 2025-2030, which will involve an estimated investment of US$22.3 billion and add 22,674MW to the country’s power grid. The plan includes 51 electricity projects led by CFE, with private sector participation contributing 6,400MW, primarily from renewable sources.  

Sheinbaum outlined the main elements of the plan, which include wind and solar energy projects, combined cycle plants running on natural gas, battery storage systems, cogeneration facilities where PEMEX will produce electricity in its refineries and petrochemical plants, and hydroelectric plants. Among the most significant projects is the conversion of the Tula power plant from fuel oil to natural gas. New solar capacity will be developed in Sonora, Coahuila, Tamaulipas, and Durango, adding 1,673MW in the first phase.  

The government also aims to strengthen energy transmission in Queretaro to meet growing industrial demand and expand electricity access to remote areas. Sheinbaum confirmed that construction of the Mexico-Queretaro Train will begin in April 2025, with feasibility studies currently being conducted. Additional infrastructure projects in the state include new vehicle bridges and a water reuse initiative in collaboration with the National Water Commission.  

CFE Director Emilia Calleja Alor provided further details on the generation projects, highlighting 26 ongoing developments from the previous administration, including the Puerto Peñasco solar park, which began operations in September 2024. Several combined cycle plants will be inaugurated over the next few years, including those in Salamanca, Tuxpan, and Riviera Maya-Valladolid. The hydroelectric sector will also see new projects in Hidalgo, Sinaloa, Michoacan, Guerrero, Puebla, Veracruz, and Chiapas. Some of the largest additions will be the Chicoasén II and Angostura plants in Chiapas, expected to be operational by 2027.  

Minister of Energy Luz Elena González emphasized that the plan seeks to guarantee a reliable, affordable, and sustainable electricity supply for the country’s development. A key objective is to bring electricity to 500,000 households that currently lack access, with the goal of reaching 99% national coverage through a US$14 billion investment. The plan also includes efforts to improve telecommunications infrastructure, aiming for 97% internet coverage in 129,000 additional communities.  

Queretaro Governor Mauricio Kuri González expressed support for the plan, describing it as a policy that will promote economic growth and serve as a foundation for Mexico’s international energy strategy.