On February 6, 2026, the Federal Electricity Commission (“CFE”) and the Ministry of Energy (“SENER”) presented the Request for Proposals for CFE’s Mixed Development Schemes (the “RfP”). The RfP details certain elements of the structure of mixed development schemes and establishes the deadlines and requirements for participation.
Mixed development schemes will be awarded in accordance with the procedures, and evaluated in accordance with the provisions, of the Guidelines for Mixed Development Schemes (the “Guidelines”) published on January 28. For more details on the Guidelines, see our client note here.
The RfP is aimed at renewable energy projects and seeks to generate a joint investment between private individuals and CFE under a bankable scheme. The resulting projects will include a target internal rate of return for the private partner.
The mixed investment scheme provides for joint ventures between the private sector and CFE, for the construction, financing, operation, and maintenance of power plants.
a. Structuring
The RfP establishes that mixed investment schemes will be structured through Mexican trusts, in which CFE will hold a 54% stake, through contributions in kind, and will be the holder of common rights. The partner will hold a 46% stake, through capital contributions, and will be the holder of preferential rights.
CFE's contribution in kind may consist of tangible and intangible assets, such as land, power purchase agreements (“PPAs”) and support in the management of permits. The private partners’ capital contribution will consist of liquid capital, while their intangible contributions will consist of the responsibility that they will assume for the construction and development of the plant through its entry into commercial operation.
The project capital will be structured with between 20% and 30% equity and between 70% and 80% debt.
b. Minimum content of mixed investment contracts
The RfP details key elements of the rights and responsibilities of the parties. CFE has the right to veto key decisions. It must facilitate the obtaining of permits and approvals, carry out the necessary grid reinforcements, including improvements, interconnection work, and engineering support, provide construction supervision and technical support during construction, as well as preventive and corrective maintenance in substations and transmission lines, in addition to auxiliary services and supervision.
The private partner, for its part, will have control rights, including a majority on the board of trust beneficiaries, control of the trust’s technical committee, and selection of the management team. It will be responsible for the development and construction of the project. It will also be responsible for ensuring compliance with performance metrics, managing warranties and maintenance, and transferring knowledge once the target internal rate of return has been achieved. In operation and maintenance, it will monitor performance and availability, perform corrective maintenance, and manage spare parts, with the option of subcontracting operational services to third parties.
c. PPA Contractual structure
With regard to the energy produced, 70% will be purchased by the Basic Services Supplier and the Qualified Services Supplier, 30% will be sold on the Wholesale Electricity Market or to a third party, and CFE will pay tolling for the storage system. The PPA will be structured for a 25 year term.
d. Cash flow and transfer of ownership to CFE
The cash flow waterfall shall give priority to the payment of operating costs, the creation of reserves, and debt servicing. Thereafter, “most” distributions will go to the private partner until its target return is achieved.
Once that target is met, the asset will become the property of CFE and the remaining distributions will go to CFE. CFE may, where appropriate, accelerate contributions for the partner's exit.
II. RfP Participation
The CFE provides for two forms of participation: specific projects under development by the CFE (CFV Cerro Prieto and CFV Concepción Mendizábal) and separate processes based on capacity requirements by region.
The RfP establishes the following capacity requirements by region:
Registration for the selection must be done at the SENER energy site, available here. It must contain the general details of the individual or legal entity, their technical and financial capacity, general details of the project, economic model, feasibility procedures, social and environmental impact assessment, and the interconnection study phase.
In addition, where available, the following must be submitted: (i) generation permit application file number, (ii) social impact application file number or resolution, (iii) environmental impact statement application file number or resolution, (iv) evidence of ownership or use of the land, and (v) proof of payment for interconnection studies. For new projects, the interconnection application and technical information for interconnection studies must be included.
For any questions or comments, you can contact our expert team.
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