CFE and private partner development scheme for renewable energy capacity

This announced partnership between Comisión Federal de Electricidad (CFE), SENER, and private partners represents a significant undertaking to expand renewable energy capacity in Mexico. The scheme leverages CFE's existing infrastructure and permitting capabilities, while attracting private capital and development expertise. Under the agreement, CFE will secure 70% of the generated electricity through a 25-year Power Purchase Agreement (PPA) and retain a 54% ownership stake in the facilities, ensuring long-term control and benefit for the state-owned utility. This mixed public-private approach aims to accelerate the deployment of renewable energy sources and contribute to Mexico's energy transition goals. The deal is notable for its substantial 7.57 GW capacity target, indicating a large-scale commitment to renewable energy development. CFE's involvement as both a land provider, permit manager, and electricity purchaser provides a level of security and stability that can attract private investment. The long-term PPA further de-risks the project for private partners. The structure of the deal, with CFE retaining majority ownership, suggests a strategic approach to balancing private sector participation with state control over critical energy infrastructure.