Only 4% of SENER-Instructed Transmission Projects Are Operational

CFE, entrusted with 232 infrastructure projects by the Ministry of Energy (SENER) to be completed between 2015 and 2022, has only managed to put 4% of them in operation, amounting to just nine projects. This raises concerns about bureaucratic hurdles, budgetary constraints, and a lack of attention to essential transmission network enhancements, states the 2022 National Electricity System Reliability Report.

Out of the 232 projects outlined by SENER, CFE successfully completed nine between December 2019 and December 2022, reports Reforma. These projects primarily focus on integrating equipment transformation and compensation within the national transmission network. Notably, 14 projects are under execution or construction, including the M17 REI, emphasizing the implementation of a smart grid.

Bureaucratic processes, protracted authorization and contracting procedures, and insufficient budget approvals emerge as primary obstacles, impeding the swift development of infrastructure under CFE's jurisdiction. Additionally, challenges include a scarcity of companies participating in tenders, resource shortages, personnel deficits, and the lingering effects of the COVID-19 pandemic.

The report breaks down the currently active projects:

- 14 projects in execution or construction, with the M17 REI highlighting smart grid implementation

- 12 projects in the contracting stage

- 49 projects in preliminary study activities

- 148 projects in analysis, evaluation, or review stages

CRE points out that intricate processes and requirements contribute to delays, especially in the initial phases of project development. While CFE Transmission manages some activities, coordination with various entities within the Federal Public Administration remains a crucial factor.

CRE emphasizes that the optimization of transmission networks requires advanced measurement, monitoring, communication, and operation activities facilitated by modern information technologies, data networks, and management systems. These measures aim to minimize interruptions and enhance the overall efficiency of the electricuty system.

Jesús Carrillo, Director of Economics, Mexican Institute for Competitiveness (IMCO), underscores Mexico's significant lag in fortifying and expanding transmission networks. He attributes this deficiency to administrative prioritization, emphasizing that the focus and budgets are primarily directed toward power generation rather than addressing critical needs in transmission and distribution. Carrillo contends that CFE could potentially generate revenue by prioritizing investments in these neglected areas.