Investment opportunities in the Electricity Sector: transmission and transformation projects - schemes for mixed development

During the first quarter of 2026, the Mexican Federal Government, through the Federal Electricity Commission (“CFE”), advanced several strategic projects for the development of Mexico’s electricity sector. These include transmission and transformation projects aimed at strengthening the National Transmission Grid (“RNT”), as well as the continuation of the process for private-sector participation in mixed development schemes with CFE.

On March 20, 2026, new packages of transmission and transformation projects were announced to address growth in electricity generation and demand, strengthen the reliability of the National Electric System and support new generation capacity under the Electricity Sector Development Plan, the Expansion Plan and the 2025-2030 Plan for the Strengthening and Expansion of the National Electric System.

The portfolio comprises 49 packages and 58 projects distributed among an Initial Block and three subsequent blocks. The Initial Block includes 19 packages with 19 projects; Block 1 includes nine packages with 15 projects; Block 2 includes seven packages with 10 projects; and Block 3 includes 14 packages with 14 projects.

The Initial Block and Blocks 1 and 2 will be financed through FIBRA E, while Block 3 will use a Financed Public Works structure. According to the announced schedule, Block 1 projects are expected during the second half of 2026; Block 2 projects during the first half of 2027; and Block 3 projects will be published between the second half of 2026 and the first half of 2027.

As of the date of this note, five projects under the Initial Block were undergoing tender procedures:

• Capacitive Compensation in Southeastern Puebla / Izúcar de Matamoros. CFE procedure CFE-0004-CACON-0009-2026. The bid submission period had concluded, with the award decision scheduled for April 9, 2026.

• Alvarado II and San Andrés II. CFE procedure CFE-0004-CACON-0011-2026. The bid submission period had concluded, with the award decision scheduled for April 20, 2026.

• Increase in Transformation Capacity in the Southeastern Metropolitan Area of Guadalajara. CFE procedure CFE-0004-CACON-0015-2026. The bid submission period remained open, with the award decision scheduled for May 6, 2026.

• Reactive Compensation for the Santiago Area. CFE procedure CFE-0004-CACON-0017-2026. The bid submission period remained open, with the award decision scheduled for May 14, 2026.

• Increase in Transformation Reliability in the Mazatlán Area. CFE procedure CFE-0004-CACOA-0003-2026. The bid submission period remained open, with the award decision scheduled for April 30, 2026.

Companies interested in participating should consult CFE’s procurement microsite to monitor the applicable calls, requirements, deadlines and dates for each project. Prior registration on the platform is also required to participate in the procedures.

In parallel, the process continues under the call presented by CFE on February 6, 2026 for the development of clean generation projects through mixed investment schemes, within the binding planning model contemplated under Article 38 of the Electricity Sector Law.

The structure provides for CFE to hold a 54% majority equity interest and private investors to hold 46%, through a special purpose vehicle. The model contemplates long-term power purchase agreements of up to 25 years. Under the proposed structure, 70% of the electricity would be sold to CFE’s Basic Services Supplier and/or Qualified Supplier, while the remaining 30% could be commercialized through the Wholesale Electricity Market or with third parties.

The private investor would be responsible for the project’s overall development, while CFE would support the process in connection with permits, studies, interconnection and technical matters, in addition to participating as majority shareholder.

In March, CFE reported progress in the evaluation of projects registered under the call. A total of 80 companies participated and 394 projects were registered, of which 255 completed the registration process and 139 did not.

Under the requirements by Regional Control Management of the National Center for Energy Control (“CENACE”), 222 projects were registered, representing 37,749 MW. In addition, 22 specific projects were registered jointly with CFE, representing 1,073 MW: 11 relating to the Concepción Mendizábal photovoltaic park and 11 to Cerro Prieto.

The registered portfolio shows different stages of development: 51% of the projects already have Interconnection Studies; 48% have completed or are undergoing the MISSE procedure; and 43% already have an Environmental Impact Assessment.

As of 6:00 p.m. on April 8, 2026, the projects remained in Stage 2, Technical Review and Selection. At that time, CFE had not updated the schedule or announced the commencement of Stage 3, Request for Proposals. Once the technical review is completed, the Request for Proposals will be shared exclusively with selected participants, followed by the Submission and Evaluation stage.

Because the schedules for these procedures may be modified, participating companies should actively monitor the relevant calls and assess in a timely manner the regulatory, technical and financial requirements applicable to each project.

Von Wobeser y Sierra is currently assisting several companies participating in mixed investment projects and has the experience required to advise companies interested in transmission projects, from reviewing calls and participation structures to addressing the regulatory and contractual aspects of their development.

CFE procurement microsite:
https://msc.cfe.mx/Aplicaciones/NCFE/Concursos/