Mexico's Energy Ministry (SENER) introduced new criteria for ordering the next calls for generation and storage, while the Federal Electricity Commission (CFE) is moving forward with formalizing the projects selected in the first round of the mixed scheme.
CFE has already signed the contracts for the projects awarded in that process. This contractual step marks a new milestone for a call for proposals that selected 37 initiatives from 31 developers, totaling approximately 7,410 MW , after initially evaluating more than 200 proposals totaling nearly 38 GW.
In parallel, the Ministry of Energy (SENER) published the second amendment to the Call for Proposals for Strategic Electricity Generation and Storage Projects. The document defines the capacity to be covered, modifies administrative stages, and establishes the options available when a project fails to formalize its partnership with the Federal Electricity Commission (CFE) .
The main requirement for the battery segment is the territorial distribution of 935 MW of stand-alone Electrical Energy Storage Systems (EES) , all with a required duration of three hours. If the entire target is met, the process would mobilize approximately 2,805 MWh of energy capacity .
The Northern Regional Control Management leads the demand with 245 MW and three hours of storage. It is followed by the Eastern region, with 180 MW.
The distribution is completed with 160 MW in the Northwest; 140 MW in Baja California; 140 MW in the Peninsular region; 50 MW in Baja California Sur; and 20 MW in the Western region . In all cases, the systems must deliver power for three hours.
Location plays a central role in the selection process. SENER instructs the Technical Analysis Group to identify initiatives that will provide the greatest benefits to the system and the State, considering, among other factors, congestion relief, power contribution, regional reliability, operational flexibility, and the projected performance of the batteries .
The agreement adds a concrete timeframe: priority will be given to projects whose Commercial Operation is scheduled to begin before 2030. The authority defines that date as a “ mandatory timeframe ” for validating the firmness criteria of the proposals.
"We believe it's appropriate that the call for bids doesn't concentrate all the capacity in a single region, but rather diversifies the opportunities. Perhaps we expected a larger allocation for some regions in the north of the country due to the rapid growth of industrial parks and data centers, where electricity demand is growing significantly. However, we understand that CFE is balancing reliability criteria, transmission constraints, and system planning," said Ricardo Hurtado González, CEO of Terralia.
The specific storage process is being developed in parallel with the new renewable energy tenders. The plan announced by ENER includes the allocation of 4,595 MW of photovoltaic and concentrated solar power and 2,159 MW of wind power , with a mandatory incorporation of at least 30% three-hour battery storage in generation projects.
Who will participate in the upcoming renewable energy and BESS calls for proposals?
According to information obtained by Energía Estratégica, Polaris Renewable Energy, Terralia, and Atlántica Renewable Power México could be among the companies that won the previous scheme and will seek to position themselves in the upcoming calls for renewable generation and storage.
In the case of Polaris Renewable Energy , company executives had already stated in an exclusive interview: “ We have high confidence in our additional pipeline of mixed, priority and stand-alone BESS projects that may significantly increase our pipeline ,” company representatives assured.
The developer was awarded the first mixed scheme with the Girasoles, Tres Hermanos and Don Umberto projects, which together reach 204 MW in alternating current and 250 MW in direct current , in addition to incorporating storage equivalent to 30% of the capacity of the plants.
Terralia , for its part, confirmed it will participate again after winning the bid for El Chorro, a 705 MW wind power development paired with 317 MW of three-hour battery storage , equivalent to approximately 952 MWh of BESS ( Battery Energy Storage System). The project achieved a price of approximately $50 per MWh and a target Internal Rate of Return of 14.5% .
Terralia's CEO told this publication that the company has already submitted a 240 MWh BESS project in Monterrey and has an additional portfolio of approximately 1.2 GW of solar and wind energy .
Atlántica Renewable Power México joins this group and could seek to expand its market position after being awarded 180 MW of photovoltaic capacity in the first bidding round. Its experience within the initial scheme places it among the companies with recent track records to compete again in the Mexican market.
Meanwhile, according to information obtained by this media outlet, AES Mexico and Invenergy are participating in the new calls for bids , after failing to secure any awards in the previous mixed scheme of the Federal Electricity Commission.
Both companies were among the group of developers whose projects were declared void by the state-owned company, in a process that excluded 46 proposals . Among the reasons identified were bids that did not guarantee the best conditions for CFE, financial solvency problems, and high single-unit prices.
The rejected bids ranged from approximately $72 to over $418 per MWh , considering energy, Clean Energy Certificates (CELs), capacity, and storage under tolling structures. Other reports showed values of $99.8, $110.3, $112.2, and $124.9 per MWh , in addition to hybrid proposals that exceeded $300 per MWh.
Interest could also be expected from other companies that were not selected, such as Cox Energy, Proyener, GTE Energy, Kiin Energy, and Cox , although there is no confirmation yet that these companies have submitted projects in the new calls for proposals . The strong competition in the previous process reinforces this expectation. The first call received 222 projects totaling 37,749 MW , compared to an initial target of 7,500 MW, resulting in an oversupply of more than 580% .
New options for generation projects
The amendment also clarifies what happens when an initiative passes the technical evaluation but fails to finalize a partnership agreement with CFE . Once the Technical Analysis Group issues its opinion, the state-owned company must initiate the procedure to formalize the project through joint ventures, long-term production, alliances, partnerships, or other modalities permitted by regulations.
When the contract or legal instrument is not formalized, CFE must notify SENER so that the agency can report the conclusion of the procedure through the Single Window for Strategic Projects in the Energy Sector. The agreement clarifies that the interested party retains the possibility of participating in other calls for proposals. “ This is without prejudice to the interested party's right to participate in other calls for proposals ,” the provision states.
Applicants may also submit their proposals through standard permitting, authorization, and other administrative procedures. This alternative reduces the risk that a technically viable project will be solely contingent upon the conclusion of a corporate or commercial agreement with CFE.
In turn, the new wording allows projects registered in the call for proposals to participate simultaneously in other processes. The document expressly states that they “may participate simultaneously in other calls for proposals.” This rule broadens the scope of action for developers, who will be able to keep different development paths open while they analyze economic conditions, operational timelines, and interconnection availability.
However, the procedure is sequential. If the applicant fails to complete a stage, they will not be able to proceed to the next, except in the cases specified in the call for proposals. This necessitates precise coordination of studies, payments, acceptance of reinforcement works, negotiations with CFE, and permit processing.
In that regard, the Terralia representative stated: "We have a parallel strategy. As developers, it's not advisable to rely on a single marketing or development mechanism. Our model consists of developing projects with sufficient technical and regulatory rigor to adapt to different business models. The Mixed Development Scheme with CFE represents an excellent opportunity and offers a very attractive investment path; however, our projects are also structured to move forward through standard procedures, as well as to pursue opportunities in the Wholesale Electricity Market or private schemes when appropriate."
Five days to choose the regulatory scheme
The second change also affects projects that began their registration process before the publication of the new conditions. Applicants have five business days to indicate their preference to continue under the previous procedure. If they do not submit this indication within the deadline, their applications will be automatically evaluated under the updated rules.
This decision may have implications for the timeline, technical evaluation, and management strategy of each initiative. Developers will need to quickly compare both frameworks and determine which offers better conditions for their project.
The call for applications also addresses the situation of those who already have a permit application pending with the National Energy Commission (CNE) . In these cases, the applicant can participate through the "with prior application" modality. However, if they obtain the permit through the strategic call for applications, they must withdraw their previous application within four business days .
The measure prevents duplication of procedures for the same power plant or BESS system. Furthermore, it establishes a clear sequence from the partnership with CFE to authorization, the submission of guarantees, and the signing of the interconnection agreement. Once the joint venture project is formalized, the applicant or CFE will have 15 business days to submit the permit application . The CNE will have ten days to review the requirements and, if necessary, notify the applicant; seven days to evaluate the binding planning criteria; five days to issue a decision; and one additional day to notify the applicant of its decision.
Financial guarantees must then be submitted before the interconnection agreement is signed. Once the requirements are met, the call for bids allows ten business days for the signing of the interconnection or connection agreement and another ten days to carry out the actions corresponding to the physical connection with the National Electric System.
With the contracts for the first mixed scheme already signed, the Mexican market moves from the awarding phase to a stage of execution, permitting, financing, and interconnection . At the same time, the new rules open another competitive front for generation projects and for the 935 MW of BESS distributed across seven regions .