Mexico 's Federal Electricity Commission (CFE) has launched an international tender to contract the transmission network reinforcement works associated with the Puerto Peñasco Photovoltaic Plant, Sequence III , with a maximum contract price of 2,894,860,585.90 Mexican pesos, excluding VAT (around USD 154.8 million ).
The procedure, identified as COEE-0029-2026 , contemplates the execution of 230 and 400 kilovolt (kV) electrical infrastructure in the states of Sonora and Baja California, through a turnkey work contract at a fixed price, financed through the F/311430 Transmission Trust .
To participate, companies must demonstrate a minimum equity capital of 429,685,326.96 Mexican pesos in each of the fiscal years 2024 and 2025, in addition to meeting requirements for technical experience, contractual background and national content.
The project includes interventions at the Cucapah, Golfo de Santa Clara and CFV Puerto Peñasco substations, along with work on three transmission lines that together represent approximately 308.89 kilometers of electrical infrastructure.
The works aim to support the expansion of the Puerto Peñasco solar complex, whose planning includes reaching 1,000 MW of installed photovoltaic capacity upon completion of its four phases, starting from the existing 420 MW and another 580 MW planned for stages III and IV.
What requirements does CFE demand of interested companies?
One of the main requirements of the competition is financial solvency . Participants must submit their tax returns for 2024 and 2025, along with financial statements and profit and loss statements that demonstrate the minimum required equity capital.
The call for bids allows the participation of business consortia , whose members may combine their financial resources to meet this requirement. If awarded the contract, they will assume joint and several liability to the contracting entity.
Regarding experience, CFE requires at least two years in the construction of electrical substations and one year in transmission lines , both with voltages equal to or greater than 115 kV, or similar work.
Companies must demonstrate this background through contracts successfully completed within the last ten years prior to the submission of proposals, accompanied by the corresponding documentation.
It is also required to demonstrate satisfactory performance in four previous contracts , two of which must correspond to transmission lines and two to electrical substations, all with minimum voltages of 115 kV and without penalties for delay.
The Terms of Reference warn that proposals that do not demonstrate the minimum experience required “will be declared technically insolvent” .
Regarding staff capacity, the Commission requires two superintendents with a minimum of one year's experience in transmission line construction and two years' experience in electrical substations of 115 kV or higher.
Another key requirement is national content , which must represent at least 36.10% of the project cost in materials and permanently installed equipment , while national participation in labor must reach at least 90% .
Proposals must be submitted exclusively through the Special Scheme Contracting System (SCOEE) , using an electronic signature and accompanied by the required technical, economic and administrative documentation.
The documents requested include the general execution programs, the construction planning, the contractual background, the identification of equipment manufacturers, and the catalogs of supplies and civil and electromechanical work activities.
CFE also contemplates a stage for improving offers, in which only companies whose proposals have been deemed sound from a technical and economic point of view will be able to participate.
More than 308 kilometers of transmission for solar expansion
The scope of the works includes the expansion of the Cucapah substation , where three 125 megavolt-ampere (MVA) autotransformers will be incorporated, with voltages of 400/230 kV, along with their respective feeders.
At the Golfo de Santa Clara substation , a ±350 megavolt-ampere reactive (MVAr) synchronous static compensator (STATCOM) and three 400 kV feeders will be installed.
For its part, the Puerto Peñasco Photovoltaic Power Plant substation will incorporate a 400 kV feeder and a line reactor composed of three 16.6 MVAr units.
Regarding the transmission lines, the plan includes laying a second circuit of 144.65 kilometers between Puerto Peñasco and Golfo de Santa Clara , in addition to another of 145.24 kilometers between Golfo de Santa Clara and Cucapah , both at 400 kV.
These interventions will be complemented by the construction of the 19-kilometer Cucapah–PI La Rosita line, designed for 400 kV, but with initial operation at 230 kV and connection to the La Herradura–La Rosita line.
The construction conditions stipulate that some of the work must be carried out on structures that already support energized circuits, which will require special safety procedures and operational coordination.
Continue reading
In particular, the work of laying, swiveling, stapling and connecting must be carried out with the adjacent circuit energized, under authorized licenses and with temporary grounding systems.
The CFE determines that "dragging will not be allowed" , so companies must use braking and winch equipment to keep the voltage under control during the installation of the conductors.
Furthermore, the agency states that "No furloughs will be granted from May 1st to October 31st of this year," due to the period of maximum demand of the National Electric System.
Consequently, activities requiring the de-energization of lines or equipment must be scheduled outside of that period. All permits must be requested 30 days in advance , accompanied by a detailed work schedule, personnel, machinery, and materials.
The works will also be subject to environmental restrictions due to their proximity to the protected natural areas of El Pinacate and Gran Desierto de Altar and Alto Golfo de California and Delta del Río Colorado .
Contractors must respect authorized access points, avoid interventions in restricted wetlands and dunes, and carry out the rescue and relocation activities for flora provided for in the environmental authorizations.
In this regard, the documentation specifies that compliance with these provisions “will not represent a cause of delay, suspension, extension or modification of the contractual termination date” .
The competition contemplates an execution period of 540 days , subject to compliance with the programs and contractual conditions established by the state-owned company.
The expansion of Puerto Peñasco towards 1000 MW
The reinforcement of the transmission infrastructure is linked to the expansion of the Rafael Galván Maldonado Photovoltaic Power Plant , located in Puerto Peñasco, Sonora, whose planning anticipates reaching 1,000 MW of solar generation through four sequences.
The first two stages have already added 420 MW to the National Electric System , through projects executed by companies specializing in engineering and construction of photovoltaic infrastructure.
The first phase, consisting of 120 MW of solar power and 12 MW of battery storage , was carried out by the Mexican company Seselec , responsible for the engineering, supply, construction and interconnection work of the park.
This facility began operating on April 30, 2023 and included transformation and transmission infrastructure to deliver the generated electricity to the electrical system.
The second sequence was developed by the consortium made up of China Energy and ASELEC , with a capacity of 300 MW photovoltaics and 60 MW of battery storage .
Its construction took place during the period 2022-2024 , while its entry into operation was completed in September 2024, raising the accumulated solar capacity of the complex to 420 MW .
Sequence III includes another 300 MW of solar power , approximately 563,000 photovoltaic modules and a battery storage system with a three-hour lifespan, with an estimated investment of 6.488 billion Mexican pesos .
The information shared about this phase indicates a storage capacity of 103 MW , compared to a previous forecast of 90 MW, so the final configuration still needs to be specified.
Furthermore, the available background information indicates that the third stage has a physical progress of over 27% , with operation expected towards the end of 2027.
Meanwhile, Sequence IV will incorporate 280 MW of solar power , along with three-hour batteries and a storage capacity equivalent to 30% of the photovoltaic power, with an estimated investment of 6.788 billion Mexican pesos .
The initially communicated plan placed the start of this fourth stage in February 2026 and the completion of both expansions during the first quarter of 2028 .
Once the four sequences are completed, the installation would reach 1,000 MW of solar power , positioning itself among the largest photovoltaic complexes in Latin America.
In this context, the international competition to reinforce the transmission lines and electrical substations seeks to develop the necessary infrastructure to support the incorporation of new renewable generation, under requirements of financial solvency, technical experience, national content and environmental compliance.
By Emilia Lardizabal
By Energía Estratégica
By Ailén Pedrotti
