CFE is preparing a US$43.6 million investment for a development program

The Federal Electricity Commission (CFE) plans to invest approximately US$43.6 million by 2030 to expand and modernize the country's electrical infrastructure, even though more than half of the necessary funds will be financed through off-balance-sheet mechanisms, primarily from the private sector.

According to the CFE Development Program 2026–2030, the cumulative investment of US$37.5 million will cover generation, transmission, and distribution projects, as well as other projects.

The strategy calls for 54% of investments to be financed off the CFE’s balance sheet, through joint renewable energy projects and schemes related to combined-cycle power plants, special-purpose entities, Long-Term Producers (PLP), and private pipelines. This will allow for increased investment in infrastructure without the necessary resources resulting in debt on the state-owned electric utility’s balance sheet.

One of the most important mechanisms is the Joint Investment Schemes, through which the CFE could partner with private entities to build power plants. Under this model, the public company must hold a stake of less than 54%, while the partner could hold the remaining 46%.

Consequently, the combined investments would total approximately US$16.7 million, enabling the development of approximately 13.8 GW of generation capacity through renewable energy sources.

Similarly, the Long-Term Producer model will be used, under which the private sector is responsible for the investment, while the CFE commits to purchasing the generated energy, and the assets are transferred in their entirety to the government at the end of the contract period.

The remaining 46% of the investments will be financed on the company’s balance sheet, with an estimated US$17.4 million allocated to renovating and expanding the transmission and distribution networks, as well as financing part of the new combined-cycle plants.