Mexico Pushes Ahead with 20 Renewable Energy Projects to Strengthen Grid and Cut Fossil Fuel Dependence

Mexico’s federal government is advancing an ambitious package of renewable energy and power infrastructure projects aimed at modernizing the national electricity system, boosting clean generation and improving long-term energy security. The plan includes 20 renewable energy projects spread across 11 states, alongside new solar, wind and firm-capacity developments led by the state-owned utility Comisión Federal de Electricidad (CFE).

The initiative forms part of a broader strategy to diversify Mexico’s energy mix, reduce reliance on fossil fuels and manage rising electricity demand amid climate-related risks. States participating in the renewable rollout include Quintana Roo, Hidalgo, Guanajuato, Tamaulipas, Sinaloa and Baja California Sur, reflecting a geographically balanced approach to energy development.

A centerpiece of the program is the Puerto Peñasco solar complex in Sonora, the largest photovoltaic project in Latin America. Once fully completed, the plant is expected to reach 1,000 megawatts of capacity, with its third and fourth phases scheduled to come online in 2027 and 2028. Officials say the project will significantly reduce greenhouse gas emissions while supporting industrial expansion and urban growth in northern Mexico.

In parallel, CFE, working with the National Infrastructure Fund and the Ministry of Energy, is evaluating three additional clean energy projects totaling 443 megawatts. These include the Las Garzas solar plant in Durango, the Girasoles solar facility in Quintana Roo, and the San Luis de la Paz wind farm in Guanajuato. If approved, the projects would help meet growing electricity demand in fast-developing regions.

To ensure grid stability, the government is also investing in firm generation capacity. Five combined-cycle power plants, adding 3,000 megawatts, are under development, with the Tula II plant in Hidalgo already operational. Authorities argue that pairing renewables with reliable backup capacity is critical for managing intermittency and maintaining supply continuity.

Complementing generation investments, Mexico plans to roll out 66 electricity transmission projects through 2026. Officials say these upgrades will ease bottlenecks, improve grid efficiency and enable greater integration of renewable energy, supporting the country’s broader sustainability and energy resilience goals.

20 renewable projects at national scale reshape Mexican Scope 2 procurement optionality and PPA availability for industrial offtakers, and the parallel transmission build is what makes those PPAs actually deliverable. Our energy-transition and responsible-investment teams help clients evaluate what these projects mean for pipeline sequencing and disclosure alignment.