SENER Invites Private Investment for Power Generation

Minister of Energy Luz Elena González, has invited investors and private sector groups to collaborate with the Mexican government to finalize electricity generation investments in priority areas of the country. These actions are intended to contribute to Plan México, the National Development Plan, and the country’s energy transition goals.

SENER's new call for proposals establishes a mechanism for the priority processing of permit applications for strategic electric power plants. The process brings order to the application procedure, speeds up the attention given to requests, and groups projects by region. This is expected to optimize reinforcement works and provide financial viability for project development.

The projects outlined in the call are projected to add more than 6,000MW of capacity, representing an investment of approximatelyUS $7.14 billion. Of this capacity, 3,790MW will correspond to photovoltaic solar energy generation and 2,100MW to wind energy.

The initiative aligns with the country's planning needs through 2030 to meet the energy transition goal of at least 38% of electricity generation from renewable sources. SENER stated that it requires private sector support to meet this goal.

Regulatory Framework and Benefits

SENER reported that the coordinated approach will provide resolutions and evaluations in a short timeframe, as all authorities are aligned with transparency and the nation's interest.

The call prioritizes applications based on technical and geographical criteria that support the strengthening of the National Electric System (SEN) in priority areas. Priority will be given to projects that provide reliability, continuity, quality, and security to the SEN, promote energy justice, and incorporate innovation and technological development.

Benefits of this scheme include reduced processing times, such as cutting the period from application entry at CENACE to the interconnection contract from six to eight months down to three. Additionally, a single entry and exit point for applications will be facilitated through the National Energy Commission. The process also incorporates sustainability criteria in collaboration with the Ministry of the Environment.

The call for proposals is limited to generation permits for the national electric market and does not include permits for distributed generation for self-consumption, cogeneration, or new mixed-scheme participation.

González stated that transparency and clear regulations are essential for building confidence and encouraging investment. She also highlighted a transformation in the electric sector led by President Claudia Sheinbaum over the last year, which has resulted in a new operational model and regulatory framework.