Mexico’s federal government plans to invest 800 million pesos (US $42.8 million) to construct two solar-powered electricity generation plants for the state of Baja California Sur.

President Claudia Sheinbaum, who made the announcement during her daily press conference on Tuesday along with Energy Minister Luz Elena González, said that construction will be carried out by the state-owned Federal Electricity Commission (CFE).

It is not yet certain exactly where the two plants will be developed. “We are determining the site for the land acquisition,” Sheinbaum said. “Our idea is to have everything ready to begin bidding this year, if not, by early 2026.”

González said that the two 50 megawatt solar plants destined for the northwestern peninsula will incorporate thermal storage capacity, allowing them to supply power even when the sun is not shining. 

“The objective is to strengthen the electricity supply in Baja California Sur … in response to growing demand in this area” González said at the press conference. 

Baja California Sur’s energy structure runs off an independent electric power grid, separate from the country’s main transmission network. Previous plans to construct an underwater cable to connect the Baja California Peninsula to Mexico’s national grid have been scrapped due to high costs. Instead, the government decided to invest in the new solar plants to boost capacity, while maintaining the state’s independent energy network. 

Noting that the project is “the first of its kind in Mexico,” González stressed that it aligns with the Morena government’s goal to generate 35% of Mexico’s electricity using renewable sources by the end of Sheinbaum’s six-year term, in 2030. The plants are part of the 2025-2030 plan to strengthen and expand the national electricity system using innovative technologies, according to González.

“This [project] is very important for the country because we are at the forefront of renewable energy,” said CFE Director Emilia Calleja. “Very few plants globally use this type of system.”

CFE already had plans to develop the Baja California region’s energy network, including renovating some of its older plants. In March, the CFE approved the construction of the 240-megawatt Los Cabos Internal Combustion Plant, which will run on natural gas, for 272 million pesos ($14.6 million).

Mexico’s energy sector has faced several challenges in recent years, leading to heavy reliance on natural gas imports. Some estimates suggest that over 70% of Mexico’s natural gas supply now comes from the United States. 

Greater diversification through the expansion of Mexico’s renewable energy industry could, therefore, help enhance energy security over the coming decades. 

 With reports from La Jornada, Infobae and Tribuna de México