CFE May Consider More Than 60 Energy Projects Worth $12.5 Billion — The Rio Times
In Mexico, state energy company CFE may hold a vote on October 20 on more than 60 mostly solar and wind projects, The Rio Times reported. Their combined value is estimated at approximately $12.5 billion, while their potential installed capacity is estimated at 8.2 GW.
Bloomberg obtained these parameters from an unnamed source, and CFE has not confirmed them. The cost of the projects will depend, among other things, on spending to expand electricity transmission networks. According to another source, fewer than 60 initiatives may receive approval.
The source described the possible vote as preliminary approval rather than the final awarding of contracts. CFE has not published a list of projects, so the participating companies and construction sites remain unknown.
CFE's stated plans
On October 7, CFE Director Emilia Calleja said that 38 solar and wind power plants in 16 states across the country — from Baja California to Yucatán — had already been approved under the first tender. According to her, CFE envisages 58 renewable generation projects with a combined capacity of more than 10,400 MW, including under mixed arrangements with private developers.
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At the same time, there is no official confirmation that the 8.2 GW package is linked to these 58 projects or to the 38 previously approved facilities. It is therefore unclear whether these are new initiatives or mostly the same projects.
Energy Minister Luz Elena González said that the government aims to increase the share of renewable sources in electricity generation from 24% to at least 38% by 2030. Overall, the plan provides for about 32,000 MW of new capacity by 2030. Calleja also said that nine combined-cycle gas power plants with a total capacity of more than 9,300 MW are to be commissioned by then.
Private sector participation
The Mexican government emphasizes that CFE must retain at least 54% of electricity generation. At the same time, private companies may participate in new facilities under mixed arrangements with the state company.
The expansion of generation and electricity networks is linked to power supply disruptions recorded on the Yucatán Peninsula during hot and humid months. Mexican authorities said they would spend about 1.17 trillion pesos on electricity generation, transmission and distribution, as well as gas pipelines. Of this amount, 161 billion pesos is allocated for power transmission lines.
