Mexico's President Seeks to Increase State-Owned Utility's Stake in Electric Power Market

Researched by Industrial Info Resources (Sugar Land, Texas)--Mexico President Lopez Obrador announced plans last month to issue a proposal to increase state-run Comision Federal de Electricidad's (CFE) participation in the nation's electric power market.

The proposed constitutional reform would boost CFE's share from the current 51% to 54%. It is to be sent to Congress by the end of this year.

Earlier this year, Congress approved a bill to prioritize power generation by CFE over private generation, regardless of costs. Affected companies immediately contested the measure in court.

Meanwhile, CFE put in motion planned investment in combined-cycle projects for 2021-2025 and was conducting engineering, procurement and construction (EPC) tenders for the construction of six combined-cycle plants with an aggregate capacity of 4.32 gigawatts (GW) and a total investment of $4.5 billion. The six plants are planned to begin construction in early 2022. CFE also has plans for major investments in transmission and distribution infrastructure projects and the construction of another five combined-cycle projects for 2025- 2027.

Industrial Info is tracking more than 320 capital-spending projects being developed by CFE through its subsidiaries. These projects add up to a nearly $14 billion investment, including $5.6 billion in new plant construction, $3 billion in unit additions, $1.1 billion in plant retrofits, upgrades, modernizations and rebuilds, and $4.4 billion in transmission and distribution projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of related projects.

Click on the image at right for a graph showing CFE's project spending by project type.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.