Mexico's CFE Expands Electrical Grid for Industrial and Tourism Growth
State utility invests billions to modernize transmission infrastructure and meet record energy demand.
1Strategic Grid Expansion Plan
The Comisión Federal de Electricidad is executing 83 major transmission projects to bolster electrical reliability across Mexico. With a total investment of 89.1 billion pesos, these works focus on connecting industrial hubs and tourism regions. The initiative aims to support national economic growth by ensuring the grid can handle rising electricity consumption levels.
2Record Demand Driving Investment
Energy consumption in Mexico reached a historic peak of 54,530 megawatts on August 20, 2026. This figure represents a three percent increase compared to the previous year's peak levels. To address this surge, CFE is prioritizing infrastructure that prevents supply restrictions and supports the ongoing relocation of manufacturing companies into the country.
3Industrial Corridor Transmission Upgrades
A key project targets transmission capacity between the northeast and central regions of Mexico. With an investment of 12.07 billion pesos, this upgrade benefits states including San Luis Potosí, Querétaro, Hidalgo, and the State of Mexico. These areas face high industrial demand and the project is scheduled for completion by June 30, 2028.
4Tourism Infrastructure in Quintana Roo
CFE is investing 7.37 billion pesos to increase transmission capacity for Cancún and the Riviera Maya. This development will serve over 733,000 users across Benito Juárez, Solidaridad, and Tulum. The projects are expected to be fully operational by March 2027, ensuring stable power for the region's vital tourism and hospitality sectors.
5Cozumel Island Modernization Efforts
The island of Cozumel is undergoing a significant electrical upgrade costing approximately 4.98 billion pesos. The project includes the installation of four new subestations and four transmission lines, alongside replacing aging submarine infrastructure. Scheduled for completion in May 2028, these improvements aim to reduce vulnerability and provide greater energy security for island residents.
6New Power Generation Capacity
The utility successfully incorporated six combined-cycle power plants into the national grid between February 2025 and May 2026. These facilities added 3,204 megawatts of capacity, supported by an investment of 52.4 billion pesos. This expansion provides the firm generation necessary to stabilize the system during periods of high national energy demand.
7Hydroelectric Plant Rehabilitation
Modernization efforts at existing hydroelectric facilities have successfully recovered 53 megawatts of capacity. The work involves rehabilitating or replacing equipment that has been in service for decades to reduce operational risks. These interventions are designed to prolong the life of existing assets while ensuring consistent performance across the national power network.
8Future Grid Scale and Impact
The ongoing 83 projects will add over 3,500 circuit-kilometers of lines and 9,700 megavolt-amperes of transformation capacity. Furthermore, 35 transmission projects were recently completed for 15.1 billion pesos, adding 990 circuit-kilometers. These combined efforts represent a comprehensive strategy to modernize Mexico's energy backbone and accommodate long-term industrial and tourism-driven growth.