Thursday, March 6, 2025

CFE approves major electrical grid upgrade as summer approaches

Mexico’s Federal Electricity Commission (CFE) announced this week that it will invest US $2.5 billion to develop five new power plants in the coming years.

After Tuesday’s extraordinary session, the CFE Board of Directors also announced it is taking steps to strengthen the electrical grid in the Yucatán Peninsula ahead of the summer season. 

Street in Leon, Guanajuato, under blackout conditions, with the city skyline, mostly unlit, in the background.
Leon, Guanajuato, under blackout conditions last May, when residents across Mexico experienced rolling blackouts. The city of Salamanca, also in Guanajuato, will be one of the recipients of five new power plants CFE will build across Mexico. (Jorge Ortega Hernández/Cuartoscuro)

The steps come nearly a year after blackouts and intentional power outages plagued large swaths of the country in May and August, significantly affecting popular tourist destinations in the state of Quintana Roo such as Cancún, Playa del Carmen, Cozumel and Tulum, as well as in the Riviera Nayarit along the Pacific Coast.

Last May, the Yucatán Times reported that power outages occurred in at least 21 of Mexico’s 32 states, and the National Energy Control Center (Cenace) had declared a state of emergency in the nation’s electricity system on more than three occasions.

Where will the five new power plants be built?

CFE announced that the new plants will be built in the following cities:

  • Salamanca, Guanajuato
  • Tula, Hidalgo 
  • Mazatlán, Sinaloa
  • Altamira, Tamaulipas 
  • Los Cabos, Baja California Sur

All will feature state-of-the-art technology, according to a CFE press release.

Mexico's Energy Minister Luz Elena Gonzalez standing at the presidential podium, talking to reporters at President Sheinbaum's daily press conference. Behind her, listening, stands President Sheinbaum.
The grid upgrade is part of President Sheinbaum’s National Energy Sector Strategy, which President Sheinbaum introduced in November and Energy Minister Luz Elena González can be seen here explaining to reporters. (Daniel Augusto/Cuartsocuro)

In addition to the five states in which the power plants are being built, four other states — Sonora, Durango, Coahuila and Jalisco — will benefit directly, the CFE said, adding that these ventures are the first of 12 strategic projects included in the government’s Plan to Expand Energy Generation over the next six years, the CFE said.

All but the Los Cabos power plant will be combined-cycle operations, which use gas and steam turbines together to produce up to 50% more electricity from the same fuel than a single-cycle plant can manage.

The Los Cabos project will feature an internal combustion power plant that will rely on natural gas. The CFE explained this decision by saying internal combustion operations use less water and Los Cabos is located in a desert zone.

All five power plants will have a 30-year lifespan, the CFE said, and all will be capable of operating with diesel fuel in case of emergency.

Keeping the air conditioning on in the Riviera Maya

The CFE’s plans to enhance the electrical network in the Yucatán Peninsula ahead of the summer heat comes as great news to the state of Quintana Roo.

The tiny state at the eastern end of the peninsula receives about 33 million tourists each year, and its hot, humid climate results in high demand for air conditioning.

Blackouts in May and August last year wreaked havoc at the height of the tourist season. The loss of power resulted in traffic light failures, air conditioning malfunctions and problems at hotels and shopping malls, while also affecting ATM services and even mobile internet services.

To address the Peninsula’s electricity shortages, the CFE said it will install capacitor banks in seven northern substations in Quintana Roo at a cost of 194.4 million pesos. (US $9.6 million). These banks will store and release energy to improve the state electrical system’s efficiency.

An electricity capacitor bank at an electrical substation
To shore up Quintana Roo’s electrical grid, CFE plans to install substation capacitor banks, which store electricity and keep flow more consistent. (Eaton)

Additionally, a three-phase transformer will be moved from Saltillo, Coahuila, to Playa del Carmen at a cost of 49.4 million pesos (US $2.4 million). A three-phase transformer can step up or step down voltage more efficiently due to its ability to handle high power loads. 

The CFE did not say when these projects will be completed, nor did it mention if installation of the capacitor banks would affect Quintana Roo’s power supply during installation.

It did, however, say it has also approved a budget of 9.7 million pesos (US $478,000) to reduce technical losses, to modernize Mexico’s distribution substations, to invest in automatic and remote operational capacities and to purchase new equipment, computers and vehicles.

Additionally, the CFE also authorized 137 projects to renovate, substitute and build new substations.

With reports from El Financiero, Riviera Maya News, The Yucatán Times and El Economista

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