Mexico Opens 7.5GW Clean Energy Tender to Private Investors

After years of being shut out, private investors finally have a clear path back into Mexico's renewable energy market, and they're responding with enthusiasm.

President Claudia Sheinbaum's administration is requesting proposals from companies to develop more than 7.5GW of clean power plants across Mexico. The deadline for registration was February 20, with contracts expected to be signed by April 26.

The tender includes 6.5GW of wind and solar projects nationwide, plus partnerships for two solar plants already underway in northern Mexico. This follows sweeping energy reforms in 2025 designed to reverse the market restrictions imposed by former President Andrés Manuel López Obrador.

"There is a sense of urgency on the side of the government to try to get investment flowing into the electricity sector in Mexico," César Hernández, former undersecretary of energy and managing partner at legal consultancy Publius, told a webinar hosted by Norton Rose Fulbright. "There is a lot of excitement among investors."

The projects will use Mexico's new "mixed scheme" mechanism, where state utility CFE partners with private companies. CFE must hold at least 54% ownership and will purchase up to 70% of the power generated for 25 years, while private partners can hold up to 46%.

That structure is attracting serious financial backing. "There is a lot of interest not just from banks but from private funds and development banks," said Alfredo Santillán, country head of SMBC Mexico. "There's enough money available to support this industry."

The Ripple Effect

This tender represents more than just new solar panels and wind turbines. Mexico experienced a prolonged shortage of new power generation, creating pent-up demand from industrial users and electricity suppliers eager to secure clean energy contracts.

Copenhagen Infrastructure Partners, a Danish private equity firm, has already won permits for 900MW of solar power and 450MW of energy storage in December's fast-track tender. Managing partner Adrián Katzew noted that large consumers show "pretty high" appetite for procuring power.

The government is proving flexible in negotiations. One December permit winner secured a significant reduction in grid reinforcement requirements initially requested. Officials are "fine-tuning some of the details that are worrisome for the companies," Hernández said.

Construction is planned to begin in November 2026, with projects expected to start commercial operations by 2028 or 2029. Industry participants say the government's willingness to let companies set terms that meet their return expectations shows genuine commitment to making partnerships work.

Mexico's renewable energy sector is officially open for business again, and the money is already lining up at the door.