CFE announces major electrical grid investments in Mexico

Mexico’s federal power utility, CFE, is launching major infrastructure projects to modernize the national electrical grid. In Cozumel, Quintana Roo, a 3.6 billion peso project has been awarded to install approximately 20 kilometers of new submarine cabling. This project, scheduled to begin construction on October 5, aims to replace 40-year-old infrastructure that has caused frequent power failures and outages. The work is expected to be completed by 2028.

Simultaneously, CFE will invest 2.87 billion pesos to upgrade and expand the electrical grid in Baja California Sur. This investment includes 1.76 billion pesos for transmission projects to add 400 MVA of capacity and 939 million pesos for distribution work, including new substations. These upgrades respond to surging demand in areas like Los Cabos and La Paz.

Looking toward 2030, analysts note a significant investment gap for Mexico’s state-owned energy companies. The 2027 budget proposes 255 billion pesos for Pemex and 61 billion pesos for CFE, prompting experts to suggest that private capital and mixed investment schemes will be necessary to meet long-term energy infrastructure goals.