Sheinbaum Inaugurates US$350 Million San Luis Potosi Power Plant

President Claudia Sheinbaum, accompanied by San Luis Potosi Governor Ricardo Gallardo, CFE Director Emilia Calleja, Minister of Energy Luz Elena González, and other local and federal officials, inaugurated the San Luis Potosi Combined Cycle Power Plant, a 437.2MW facility with an investment of US$350 million.

The Villa de Reyes plant, which required a public US$350 million investment, will generate around 3.94TWh/y, enough to supply electricity to over 2.5 million homes, according to Calleja. The plant is equipped with advanced technology that will enable a utilization factor above 90% and will help reduce CO₂ emissions by more than 50% compared to traditional fuel oil plants.

Combined cycle power plants are by far the main sources of electricity in Mexico. According to 2022 data from CONAHCYT, just below 40% of Mexico’s installed electricity generation capacity came from combined cycle power plants, equivalent to around 34GW of installed capacity. These plants were responsible for 57% of the electricity generation in the country, accounting for just under 188,000GWh. 

“This is about guaranteeing Mexico’s energy sovereignty,” Calleja said. “Our goal is not profit. Our mission is to supply electricity at the lowest possible cost to all Mexican households.”

She emphasized that the project is part of a broader strategy to rebuild CFE’s generation capacity, which had been in decline. “By 2018, projections showed CFE’s share in electricity generation dropping to 16% by 2030. Without intervention, the company would have continued to shrink,” she said.

Under Mexico’s energy expansion plan for 2025–2030, CFE is set to invest over US$12 billion in new generation projects and more than US$11 billion in transmission and distribution infrastructure. The goal is to add 26,000MW of new generation capacity during Sheinbaum’s term, equivalent to building around 60 plants similar to Villa de Reyes.

The new plant will replace the old Villa de Reyes thermoelectric facility and is part of CFE’s fortification plan. This shift will cut CO₂ emissions by 53% and reduce water use by 40%.

Speaking at the inauguration, Sheinbaum highlighted that her administration is working to reverse decades of privatization efforts. “The constitutional reform of 2025 renationalized CFE, restoring its essence as a public company of the Mexican people,” she said. “If CFE generates electricity, it is not a monopoly. That is now enshrined in Art. 28 of the Constitution.”

González underscored CFE’s central role in maintaining a stable electricity system. “This power plant is the result of the collective effort of everyone here, of the enormously great technical capacity it has, and of the love for Mexico that we share from the Ministry of Energy and CFE,” she said.

San Luis Potosi Governor Ricardo Gallardo Cardona welcomed Sheinbaum, calling her a key ally in transforming the state. “Thanks to the support of the federal government, we have new industrial parks and global companies creating well-paid jobs across all regions of the state,” he said.