Mexico’s Transmission Network Grew 3.8%; Energy Demand Grew 15%

Mexico’s transmission grid is falling behind the country’s rising power needs, according to the latest analysis from the Mexican Institute for Competitiveness (IMCO). Between 2018 and 2024, the National Transmission Network expanded just 3.8%, from 107,100km to 111,100km. Over the same period, electricity demand surged 15%, nearly four times faster.

The mismatch is straining the grid, with saturation already leading to service interruptions in regions such as the Yucatan Peninsula. Along with limited generation capacity, bottlenecks have also pushed up local marginal prices, which in May 2025 were 57.9% higher than those registered in central Mexico.

To address these challenges, the Federal Electricity Commission (CFE) unveiled a 2025-2030 transmission expansion plan, backed by MX$163.5 billion in planned investment. The program envisions 275 new transmission lines totaling 6,735km, as well as 524 new substations, aimed at modernizing aging infrastructure and relieving congested corridors.

Yet execution remains uncertain. For more than a decade, actual spending on transmission has lagged well behind what was approved in the federal budget, reports IMCO. In 2024, for example, CFE spent just MX$2.9 billion on transmission, barely 30.6% of the MX$9.6 billion originally authorized.