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CFE announces multi-billion dollar modernization to Mexico’s transmission network

Mexico City, Mexico — CFE says they are planning to invest $8.1 billion USD to strengthen the country’s transmission network. From 2025 to 2030, 275 new transmission lines and 524 new electrical substations will be built.

According to the the Federal Electricity Commission (CFE), the project will include the modernization and connection of the grid, which will be expanded to provide greater access to electricity, meet the needs of the Well-being Development Hubs and address new industries.

The Government of Mexico, through the Federal Electricity Commission (CFE) and the Ministry of Energy, made the announcement Friday. President Claudia Sheinbaum Pardo emphasized that Mexico, compared to other countries, is interconnected and with this $8.1 billion dollar investment, strengthens the connectivity of the entire country.

“It’s a very important investment, $8.1 billion dollars for our country’s electric power transmission system. Our entire country is interconnected. Not all countries have national interconnected systems. Sometimes they have regional ones. We have an interconnected system,” she explained.

“The interconnection to the peninsula of Baja California is nearing completion. For years, the peninsula had its own grid, its own generating plants, and there was no interconnection between San Luis Río Colorado and Mexicali.

“Now, that began with President López Obrador. So, the entire Republic is truly interconnected with this system. There are 275 new line projects and 524 substations across the country,” she explained during her Friday morning press conference.

She noted that the 2025-2030 Strengthening and Expansion Plan will also increase generation capacity by 29,074 megawatts (MW): CFE, 22,674 MW, and an additional 6,400 MW from private investment.

Energy Secretary Luz Elena González Escobar explained that the strengthening of the National Transmission Grid is a result of the President of Mexico’s constitutional reform and allows for the reliability and security of the entire national electricity system, as well as the interconnection of isolated communities and systems, increasing the response capacity to natural disasters, and reducing energy poverty.

CFE Director General Emilia Calleja Alor reported that strengthening the National Transmission Grid means modernizing and connecting Mexico even further by expanding access to energy, meeting the needs of the Development Hubs for Well-being and new industries and by reducing grid congestion.

CFE Director General Emilia Calleja Alor

She explained that the projects for new lines and substations are divided into zones: Northern Zone: 92 projects, of which 23 are already completed and 69 will be built during this administration, to provide 137 new transmission lines and 247 substations to guarantee energy to 6 million homes.

Central Zone: 49 projects, seven of which are already completed and 42 are yet to be built, creating 90 transmission lines and 181 substations, to guarantee energy to 8.5 million homes.

Southern Zone: 30 projects, of which five are already completed and 25 are yet to be built, creating 48 transmission lines and 96 substations to guarantee energy for one million homes.

She also noted that 5,097 workers are assigned to the operation and maintenance of the National Transmission Grid to optimize resources and ensure a safe, reliable and modern network.

CFE announces multi-billion peso modernization to Mexico's transmission network

In addition to implementing innovations such as the Smart Electric Grid (REI), which consists of remote monitoring and control, remote adjustment of electrical flow based on demand, and fiber optic communication, existing infrastructure is also being renovated, including high-temperature cables, insulating crossarms, digital transformers, monitoring of overhead and underground lines, 3D digital mapping, and mobile sensors.