Mexico’s $17B Power Grid Expansion to 77,000 MW

Mexico — The Comisión Federal de Electricidad (CFE) is set to undertake the largest electrical expansion in Mexico’s history, with a goal of increasing its power generation capacity by 40% to nearly 77,000 megawatts by 2030, up from the current 54,823 megawatts. This ambitious plan will be driven by an investment of more than 17 billion dollars across 51 projects, which include new power plants, repowered hydroelectric facilities, and energy storage systems.

The expansion also involves the construction of 6,735 kilometers of new transmission lines and a smart electrical grid that will connect the entire country, including the Baja California Peninsula.

A 40% Increase in Generation Capacity

During her appearance before the Senate of the Republic, the Secretary of Energy, Luz Elena González, stated that the country “does not have a generation problem” thanks to the public expansion strategy initiated seven years ago.

She explained that the plan includes new combined cycle plants and more efficient internal combustion systems, which consume less fossil fuel and are oriented toward strengthening the energy transition.

The official also highlighted that a portfolio of 7,000 megawatts will be reserved for private investment, primarily in clean energy, to maintain balance and diversification in the national energy matrix.

51 Projects, 22,000 New Megawatts, and Energy Storage

According to Global Energy, the Director General of the CFE, Emilia Esther Calleja Alor, explained before the Chamber of Deputies that 51 public projects will be developed, 40 of which will be new generation plants.

Between October 2024 and August 2025, several combined cycle power plants were scheduled to be launched, in addition to the repowering of three hydroelectric plants.

Calleja detailed that the expansion includes the installation of 2,216 megawatts of electrical storage, a key measure to guarantee the reliability of the system in the face of increasing solar and wind energy. In total, clean energies are expected to represent up to 38% of national generation by the end of the decade.

“We are going to satisfy the country’s demand for the next five years,” Calleja affirmed before legislators, reiterating that this strategy seeks to strengthen the coverage and quality of the electrical supply.

New Plants, Repowering, and Thousands of Kilometers of Electrical Grid

According to a report from Imagen Radio, in just the first year of the administration, four new plants were launched (Salamanca, Villa de Reyes, Mérida IV, and El Sauz) and three hydroelectric plants were modernized: Minas, La Villita, and Zimapán, adding 1,741 megawatts.

But the growth does not stop there. The CFE projects the construction of 6,735 kilometers of new transmission lines and 524 electrical substations to move energy to areas of higher consumption. In distribution, between October 2024 and August 2025, more than 6,000 million pesos were invested in works to expand and reinforce the national grid.

8,177 Billion Dollars for a Stronger, Interconnected Grid Across Mexico

In an official communique from August, the CFE reported that it will invest 8,177 billion dollars to strengthen the National Transmission Network between 2025 and 2030. The plan contemplates 275 new lines and 524 works in substations, benefiting 50 million users across the country.

President Claudia Sheinbaum highlighted that this investment will allow for the complete interconnection of the Baja California Peninsula with the rest of the country, consolidating one of the few fully integrated national electrical systems in the world.

Furthermore, the plan will incorporate innovations such as the Smart Electrical Grid (Red Eléctrica Inteligente – REI), with remote monitoring and control of electrical flow, digital transformers, 3D mapping, and mobile sensors to maintain a modern and secure network.

CFE Now Generates Over Half of Mexico’s Electricity

As previously reported, the CFE consolidated its dominant role in the electrical market after the purchase of 13 plants from Iberdrola for 6,200 billion dollars, allowing it to reach 54% of national electricity generation.

According to the Centro Nacional de Control de Energía (CENACE), the Mexican State thus maintains control of the majority of the installed capacity, while private entities possess 46%. This proportion, according to the organism, was unthinkable just three years ago, when the private sector controlled 65% of the total.