Mexico Advances Energy Sovereignty With New Power Plant

Mexico opened its most efficient combined cycle power plant, a 950MW facility in Salamanca, Guanajuato. The plant, which operates on natural gas, is expected to reduce annual carbon dioxide emissions by more than 3Mt, an amount comparable to taking 750,000 vehicles off the road.

During the plant's opening ceremony, considered President Claudia Sheinbaum's first major energy infrastructure project, the president emphasized Mexico’s commitment to energy sovereignty, saying that the country does not require foreign investors to develop its electricity and oil industries. However, Sheinbaum acknowledged that Mexico needs to make progress in technology and administrative efficiency to achieve full energy independence.

The Salamanca Combined Cycle Plant is part of the government’s broader strategy to strengthen CFE. In her speech, Sheinbaum highlighted recent constitutional reforms aimed at consolidating CFE’s operations, and reversing policies that had fragmented the company since privatization reforms initiated in 1993. In addition, Luz Elena González, Minister of Energy, said previous reforms prioritized private profit over national interests.

CFE Director Emilia Esther Calleja emphasized the government’s investment of more than US$20 billion in electrical infrastructure. These investments include the construction of 10 new combined cycle plants and clean energy projects, such as the large-scale photovoltaic plant in Puerto Peñasco, Sonora, and the modernization of 16 hydroelectric plants across the country.

Additionally, Guanajuato Governor Libia García stressed the significance of the Salamanca plant for the Bajío region, as it is expected to benefit more than 5 million homes. The facility is designed to optimize water consumption, saving over 7 million m3 annually, which is enough to supply 130,000 homes. The project’s second phase, Salamanca 2, is planned to integrate 478MW to the current capacity, strengthening Guanajuato’s role in Mexico’s energy transition.

During her presentation, President Sheinbaum concluded her remarks by reaffirming the historical importance of CFE in Mexico’s electrification development, recalling its nationalization in 1960. She said the current administration’s policies are a continuation of efforts aimed at strengthening state control over energy resources.

“We fight for the sovereignty and independence of Mexico,” said Sheinbaum, emphasizing the government’s refusal to cede national resources to foreign interests.

Mexico’s Energy Investments

Recently, MBN reported that CFE approved a series of strategic investments totaling billions of dollars to modernize Mexico’s power generation infrastructure. The government outlined its 2025-2030 Power Generation Expansion Plan, which includes 12 new power plants with a combined capacity of 5,840MW across nine states.

During an extraordinary session of the Board of Directors of the CFE, presided over by Deputy Minister of Electricity José Antonio Rojas, several strategic projects to be developed in the coming years were approved.

The board also approved the execution of 18 CFE Distribution projects, representing a total investment of MX$9.681 billion (US$464.42 million). These projects aim to reduce technical losses, acquire service connections and meters, regularize informal settlements, modernize distribution substations, implement remote operation and automation in distribution networks, and upgrade equipment, vehicles, computing systems, and communications. Furthermore, 137 PRODESEN projects were approved to expand, replace, and build new distribution substations.