Mexico Unveils US$8.2B Expansion of National Transmission Network

The Mexican government is moving forward with one of the most ambitious overhauls of the country’s electricity infrastructure in decades. In a joint briefing, Minister of Energy Luz Elena González and CFE Director General Emilia Calleja outlined the progress and future trajectory of the National Transmission Network as part of the 2025-2030 Strategic Plan for Strengthening and Expanding the National Electric System.

Under the administration’s plan, nearly MX$164 billion (US$8.18 billion) will be allocated to expand and upgrade the national transmission network. The program includes the construction of 275 new strategic transmission lines, totaling 6,735km of line, and 524 new substations. More than 50 million users are expected to benefit from these projects once completed. The investment also incorporates advanced technologies to modernize existing infrastructure, reduce losses, and improve efficiency at critical points in the system, benefiting more than 50 million users nationwide.

Currently, Mexico’s National Transmission Network spans more than 111,000km and includes over 2,300 substations. “Transmission networks are essential,” González Escobar said, likening them to the highways of electricity. “They move energy over long distances from generation centers, such as the recently inaugurated Salamanca plant in Guanajuato and the Villa de Reyes facility in San Luis Potosi, to homes, businesses, and the countryside.” The plan also includes provisions for international interconnections with neighboring countries, signaling a broader regional vision.

CFE’s expansion strategy is anchored in a vision of long-term, state-led planning according to González, as she argues this framework allows Mexico to ensure reliability, enhance response capacity to natural disasters, interconnect isolated systems, reduce energy poverty, and connect regions with renewable energy potential. 

“Modernizing all this infrastructure is not a simple task, and we cannot leave it in private hands because the reliability of the system is at stake. And it is a task that, moreover, is a matter of security and social justice,” said González. 

Calleja detailed the operational and maintenance efforts that underpin the expansion. The utility employs over 5,000 personnel dedicated to ensuring the network’s reliability and safety. “Our approach combines modernizing aging equipment, predictive maintenance, and advanced monitoring technologies,” she explained. The utility is upgrading transformers and battery banks, installing digital instrumentation, deploying thermography-based predictive systems, and performing extensive maintenance on transmission corridors, including vegetation management to prevent outages.

The expansion plan is organized geographically into three zones, north, central, and south, reflecting the country’s diverse energy demands and industrial priorities. In the northern region, 69 projects are planned for the administration, complementing 23 already completed. These initiatives include 137 new transmission lines and 247 substations, reinforcing industrial corridors and development hubs while improving electricity access to households.

The central zone focuses on efficiency and connectivity, with 90 new transmission lines and 181 substations spread across 49 projects. These developments aim to optimize energy distribution from existing generation facilities and support the growing industrial and urban demands of Mexico’s heartland.

In southern Mexico, where energy congestion has historically limited access, 30 projects will deliver electricity to over 1 million households, particularly in Veracruz, Oaxaca, and Chiapas. This expansion includes 48 transmission lines and 96 new substations, with a strong emphasis on supporting tourism, industrial development, and regional economic growth.

Modernization and adoption of new technologies is a critical element of the plan. CFE is investing in a Smart Electric Grid that enables remote monitoring and real-time flow adjustments. Fiber optic networks and digital control systems allow operators to react instantly to fluctuations or failures. The utility is also deploying high-temperature cables to reduce transmission losses, digital transformers for better efficiency, and advanced sensors along high-voltage lines to detect vibrations and overheating. Even maintenance and repairs are becoming more precise and proactive, with remote diagnostics and targeted interventions designed to prevent disruptions before they occur, states the company.

CFE technical staff have also developed three systems that enhance planning and response across the electricity network. The first is a modeling tool that allows engineers to simulate potential projects and assess their feasibility in addressing specific operational requirements. This system provides data to guide decision-making and evaluate how proposed projects would respond to identified challenges. The second system, SIRETIH, monitors hurricanes and predicts their potential paths, as well as the impact on transmission lines and substations. By providing early insights into likely disruptions, the system enables CFE teams to plan interventions in advance, reducing response times to failures or weather-related events. Finally, the use of drones allows CFE to conduct terrain analysis and assess disaster-affected areas that are difficult to access. Aerial data from drones supports remote planning and coordination with on-site specialists, improving the efficiency and safety of emergency operations.

“The expansion is not just about building new lines and substations,” Calleja emphasized. “It is about increasing the reliability and capacity of the entire system, ensuring that energy reaches every corner of the country safely and efficiently.”

The plan also underscores the government’s commitment to keeping energy costs stable. González Escobar reassured citizens that tariffs would not increase beyond inflation, framing the expansion as a measure to protect both national sovereignty and public welfare. “We are consolidating our energy independence with a forward-looking vision, putting the public interest at the center of all our actions,” she said.

Importance of Transmission Infrastructure for Energy Reliability

The lack of reliable and capable transmission infrastructure in Mexico remains a major hurdle for many generation projects, particularly private renewable plants, including the 400MW of wind energy capacity still awaiting grid interconnection, according to the Mexican Wind Energy Association (AMDEE). For Pedro Aznar, Country Head, Prosolia, this represents the primary barrier to renewable energy development in the country. “Generation is not really the problem; once permits are granted, projects can be built in six months to a year,” Aznar explained. “That part moves quickly. The issue is transmission, as networks simply do not have the capacity.”

However, the outlook among private companies remains positive, bolstered by Sheinbaum’s administration’s recent steps to incorporate private players into the country’s energy mix. Juan Pablo Saenz, Country Manager, Atlas Renewable Energy, said he believes the Mexican government is reshaping the electricity market to strengthen state oversight and long-term planning.

“It is key to plan the electricity system’s expansion in order to avoid imbalances between supply and demand or congested transmission corridors that could trigger curtailments and impact project financial health,” said Saenz.  

According to him, the new market design has two goals: advancing the energy transition toward low-carbon sources like renewables; and creating a more reliable electricity system. 

“These goals do not always pull in the same direction, and that is the government’s big challenge,” he said. “Energy must be affordable, clean, and reliable. These goals can be achieved in the short and medium term by including BESS; allowing more renewable generation; reducing congestion in transmission corridors; and displacing expensive fossil fuel energy during peak demand.”