Mexico's CFE Unveils New Framework for Public-Private Energy Projects

CFE Greenlights New PPP Framework

Mexico's state-owned utility, Comisión Federal de Electricidad (CFE), has formally approved and published new guidelines designed to facilitate mixed contracts with private stakeholders. These 'Guidelines for Mixed Development Schemes' were published in the Official Gazette on January 28, 2026, marking a significant shift in the country's energy sector strategy. The framework aims to accelerate the commercial operation of strategic infrastructure projects through a co-investment model that shares risks, capital expenditure, costs, and returns.

Redefining Public-Private Collaboration

The new guidelines are set to redefine the relationship between CFE and private investors, moving 'from a logic of competition to one of collaboration,' according to Arturo Carranza, Director of Energy Projects at Akza Advisors. This initiative is part of broader energy reforms introduced in 2025 by President Claudia Sheinbaum's administration, which has actively promoted public-private partnerships as essential for national development. The framework allows for shared investments, costs, risks, and operational responsibilities in projects supporting Mexico's power infrastructure.

Key Provisions and Project Types

The guidelines outline two primary types of projects: long-term production projects, where a private sponsor develops and finances a project with an obligation to sell its entire electricity output to CFE, and mixed investment projects, which involve joint investments between CFE and a private company. For mixed investment projects, CFE is mandated to retain at least a 54% equity stake, ensuring state control. Projects must adhere to principles of reliability, security, accessibility, and sustainability for Mexico's National Electric System, and are expected to generate sustainable financial returns.

Procurement for these projects will primarily occur through public tenders, though restricted invitations or direct awards may be used under specific circumstances. A dedicated Mixed Development Group (GDM), comprising representatives from CFE, the Ministry of Energy (SENER), and the Ministry of Finance, will evaluate the technical, operational, financial, and socio-environmental feasibility of each proposal.

Addressing Growing Energy Demands

The introduction of these mixed contracts comes as Mexico faces an anticipated electricity demand growth of between 3% and 5% annually over the next decade. Experts believe that private capital will be crucial for expanding the country's electricity infrastructure, which includes generation, related infrastructure, energy storage, and power transmission works. The government has indicated that a significant portion of the projected USD 5.6 trillion in infrastructure projects in the coming years is linked to the energy sector, highlighting the scale of opportunity for private investors.