Cox participates in Mexico's tenders and invests USD 6 billion for 13 GW: "It's 70% of our global business"

Cox is moving forward with a new stage of expansion in Mexico with a portfolio of approximately 13 GW of generation and storage projects, an additional investment plan of USD 6 billion and active participation in schemes promoted by the federal government to incorporate private capital into the development of the electricity system.

The company, which recently strengthened its presence in the country through the acquisition of Iberdrola Mexico's assets for USD 4 billion , seeks to capitalize on the opportunities offered by new mixed development schemes with the Federal Electricity Commission (CFE) and calls for priority private projects, in a scenario of growing electricity demand.

“Currently, we are participating in the various calls for proposals launched by the federal government and we want to continue analyzing the opportunities that arise,” said José Antonio Hurtado de Mendoza, CEO of Cox for North America, in an exclusive interview with Energía Estratégica.

The statement takes on special significance due to the weight that Mexico acquired within Cox's international structure.

“Mexico is now Cox’s main market and represents approximately 70% of our global business,” highlighted Hurtado de Mendoza, who links this position to the prospects for industrial expansion, economic integration with North America and the increased need for energy and water infrastructure.

In that context, the executive explains that the investment made to acquire Iberdrola's energy assets is part of a long-term strategy, which is now complemented by a new disbursement program aimed at renewable generation, storage and associated infrastructure.

“Our commitment to Mexico is long-term. In fact, we have announced an additional investment plan of $6 billion in energy, water, and related infrastructure, a clear demonstration of our confidence in its potential,” he stated.

From 2600 MW operational to 13 GW in the pipeline: Cox's roadmap in Mexico

Currently, the company has 15 generation assets totaling 2,600 MW of installed capacity. Regarding its energy mix, approximately half of Cox's generation in Mexico comes from renewable sources, primarily wind and solar photovoltaic, an operational base the company seeks to expand through the development of new generation and storage projects.

“We manage around 20 TWh of energy per year and are the main private supplier in the Wholesale Electricity Market, with a share of over 25% and a base of approximately 500 large customers,” said Hurtado de Mendoza.

Based on this operational and commercial foundation, the company has a pipeline of approximately 13 GW , comprised of solar, wind, gas-fired generation projects and storage systems, which represent one of the main tools to expand its presence in the Mexican market during the coming years.

The developments are at different stages of maturity and Cox prioritizes those that present the best technical, regulatory and commercial conditions , with special attention to renewable energies and energy storage.

The strategy seeks to respond to the growth in electricity demand associated with industrial expansion, digitalization and the development of new data centers, in coordination with the energy planning of the federal government.

“We see a very relevant opportunity to convert part of this portfolio into operational projects over the next few years, always in coordination with government planning and the real needs of the market,” said the CEO of Cox for North America.

However, the company avoids setting a specific market share or a fixed target for new installed capacity by 2030, given that its priority is to move forward on projects that guarantee viability and profitability.

“Our goal is not so much to set a specific quota, but to grow profitably and in a disciplined way on our current and future platform,” he explained.

In this scenario, the executive believes that the changes promoted by the federal government, with the Ministry of Energy (SENER) at the forefront, provide greater clarity to guide private investment decisions.

“Today there is a clear roadmap for the system's growth. Now the challenge lies in implementation: agile and predictable processes for permits and interconnections, and sufficient visibility into execution times,” he warned.

The need to advance in these procedures becomes relevant in light of the forecasts for growth in Mexican electricity demand, with the development of new infrastructure and the expansion of high-consumption activities, such as artificial intelligence, digitalization and data centers.

“There is capital and projects ready. The important thing is to transform that investor interest into infrastructure and to do it at the speed required by the growth in demand, estimated at 2.5% annually until 2039,” he mentioned.

He added: “So the challenge is no longer to define the model, but to move from planning to execution in order to capture the opportunity that Mexico has ahead.”

Cox is betting on mixed schemes and warehousing to expand its business

In parallel with its expansion strategy, Cox participates in calls for proposals promoted by the Mexican Government , which include both mixed development schemes with the Federal Electricity Commission (CFE) and priority private projects.

“We find these models attractive because they combine the State’s long-term planning with the private sector’s investment capacity, technology, and execution,” said Hurtado de Mendoza, who emphasized that long-term contracts provide visibility and bankability to mobilize new investments.

The company's participation comes as Mexico moves forward with the second call for renewable projects under mixed schemes with CFE , known as Mixtos II, which already has 66 pre-selected initiatives for more than 8 GW , distributed among 34 economic groups , as previously reported by Energía Estratégica .

However, pre-selection does not imply a final award , since the projects must pass interconnection studies, technical evaluations and administrative procedures before their eventual formalization under partnership schemes with the state-owned company.

Simultaneously, the federal government is keeping open the call for applications to incorporate 935 MW of stand-alone battery storage , the registration period for which has been extended until March 1, 2027 .

As this media outlet previously reported, the new date stems from a fourth modification of the procedure and seeks to broaden the participation of developers and facilitate the preparation of the technical studies required to incorporate these systems into the Mexican electricity sector.

In this scenario, Hurtado de Mendoza confirms Cox's interest in continuing to evaluate opportunities under the different mechanisms enabled by the authorities, although the company does not specify in the interview the capacity committed or the projects presented in each modality.

According to the executive, the appeal of these instruments lies in combining state planning priorities with the technical and financial expertise of private developers, in a market that needs to accelerate the incorporation of new electrical infrastructure.

Storage in the spotlight: Cox prepares to hybridize its renewable energy parks and stand-alone projects

Furthermore, battery storage is positioned as one of Cox's main investment lines , both through stand- alone projects and through hybrid configurations associated with photovoltaic installations or gas generation.

These alternatives seek to meet the needs of large industrial consumers, through solutions that improve operational flexibility and strengthen supply reliability.

“ We are considering hybridizing our renewable energy parks in the coming years, incorporating storage systems to increase operational flexibility, optimize the use of generated energy, and strengthen the reliability of supply for our customers ,” he explained.

For Cox, batteries represent an opportunity that transcends their integration with renewable sources, due to their ability to manage production and demand, reinforce operational stability and provide additional electrical services.

“ We see storage as a new structural piece of the electricity system, not just as a complement to renewables ,” said the managing director for North America.

The executive believes that the evolution of market rules will allow the development of new business models linked to this technology, through the combination of generation, storage and supply to qualified customers.

This perspective is aligned with the expansion projections of the Mexican electrical system.

Mexico is considering investments exceeding one trillion pesos in electrical infrastructure and aims to increase the share of renewable energy from 24% to 38% by 2030.

Likewise, the Electricity Sector Development Plan (PLADESE) 2025-2039 projects 73.8 GW of new capacity , of which 8.6 GW correspond to battery storage systems.

In this scenario, Cox identifies opportunities to expand its business solutions and offer its industrial customers both energy and power under more competitive and reliable conditions.

Another factor influencing the strategy is the growth of data centers and artificial intelligence applications , whose expansion increases the need for continuous electricity supply and availability of water resources.

Hurtado de Mendoza observes that large technology operators, known as hyperscalers , prioritize locations that guarantee access to energy, growth capacity, network reliability, and water availability.

This trend also explains Cox's interest in developing infrastructure that combines both resources and in diversifying its investments beyond electricity generation.

In fact, the company has already begun construction of the first stage of the Rosarito desalination plant in Baja California , after winning a public tender from the federal government.

The project is part of the group's strategy to participate in the development of energy and water infrastructure linked to the country's growth needs.

In this way, Cox seeks to consolidate its position in Mexico through the progressive execution of its project portfolio, participation in new investment modalities and the development of integrated solutions for the industry.

“ At Cox, we have the knowledge, capabilities, and long-term commitment to participate in that growth and become a strategic ally of the Government and our clients wherever we can generate value ,” concluded Hurtado de Mendoza.