On October 17, 2025, the Ministry of Energy (“SENER”, per its acronym in Spanish) issued the Power Sector Development Plan (the “PLADESE” per its acronym in Spanish) in the Federal Official Gazette.
The PLADESE replaces the National Power System Development Program 2024–2038 and serves as a long-term planning instrument for the power sector, setting out a 15-year outlook for the development and modernization of power infrastructure, with updates to be issued annually.
In this regard, the PLADESE functions as an operational instrument to guide the orderly development of the power sector and to establish binding planning parameters that ensure the reliability, continuity, and accessibility of the public power service; safeguard Mexico’s energy sovereignty and security; guarantee affordable electricity supply; and align planning with principles of national security, efficiency, and sustainability. For additional details on binding planning provisions, please refer to our client note available here.
The PLADESE is organized into four main chapters:
a. Chapter 1 – Introduction: establishes the legal framework, scope of the plan, Mexico’s international commitments in the power sector, the assessment of social impacts of power projects, and the criteria on innovation, technological development, and capacity building.
b. Chapter 2 – Diagnosis of the Power Sector: describes the evolution and current state of the national power system, including final consumption and demand, generation capacity, transmission and distribution infrastructure, the national gas pipeline network, national power supply coverage, tariffs, and greenhouse gas and emission factors for the sector.
c. Chapter 3 – Planning Scenario 2025–2039: contains projections of gross power consumption, demand, and generation, as well as plans for the expansion of system infrastructure.
d. Chapter 4 – Investment Programs and Plans: details the additional capacity requirements under the Binding Program for the Installation and Retirement of Power Plants (“PVIRCE”, per its acronym in Spanish), covering projects developed by the Federal Electricity Commission (“CFE”, per its acronym in Spanish), Petróleos Mexicanos (“PEMEX”, per its acronym in Spanish), and private participants. It also includes the Programs for the Expansion and Modernization of the National Transmission Grid and the General Distribution Grids, as well as binding planning projects applicable to CFE, PEMEX, and private developers.
The development of the PLADESE considers elements such as the strengthening of PEMEX and CFE as State-owned public companies, the prevalence of CFE over private participants to guarantee 54% of power generation injected into the Grid, the promotion of renewable energy, and the implementation of a rooftop solar program for residential users in northern Mexico.
Likewise, the PLADESE is consistent with other instruments of national energy policy, including the National Power Sector Strategy, the Power System Strengthening and Expansion Plan 2025–2030, Plan México, and the Power System Strengthening and Expansion Plan 2025–2030.
Below is a summary of Chapter 4 of the PLADESE regarding key investment programs and plans:
The PVIRCE sets out the requirements for capacity additions and retirements by the Regional Control Management Areas (“GCRs”, per its acronym in Spanish) of the National Center for Energy Control (“CENACE”, per its acronym in Spanish), specifying the corresponding technologies and years of entry into operation or retirement.
According to SENER, the National Power System (the “System”) requires an additional 76,000 MW of new capacity and 1,800 MW in capacity replacements.
The Northwest GCR will account for nearly 30% of the total capacity additions, followed by the Eastern and Western GCRs. Clean technologies, including battery storage, bioenergy, wind, solar photovoltaic, and hydrogen, represent 79% of the total new capacity to be installed.
In the medium term, the PVIRCE foresees the installation of 28,004 MW of new generation capacity, distributed as follows:
Table 4.9 of the PLADESE provides a detailed breakdown of the capacity requirements that may be developed by private participants, organized by GCR, technology, year of entry into operation, installed capacity, estimated investment in reinforcement works, interconnection substation, voltage level, and state.
In the long term (2031–2039), the PVIRCE projects the addition of 42,004 MW of interconnected capacity, plus 5,220 MW from distributed solar generation, for a total of 47,224 MW of additional installed capacity. Of this total, 78.6% corresponds to clean energy projects incorporating battery energy storage systems (“BESS”).
Finally, the PVIRCE anticipates a gradual reduction in the use of natural gas in combined-cycle power plants through the progressive integration of hydrogen beginning in 2036. New configurations are expected to use a 75% natural gas and 25% hydrogen mix, with the dual objective of reducing emissions and leveraging existing infrastructure for the transport of green hydrogen.
The PLADESE includes the expansion and modernization of the National Transmission Grid (“RNT”, per its acronym in Spanish) and the General Distribution Grids (“RGD”, per its acronym in Spanish) with the objective of strengthening Mexico’s power infrastructure and ensuring the continuity and reliability of supply in the medium and long term.
a. Expansion and Modernization of the RNT
Since 2015, SENER has instructed a number of projects aimed at expanding and modernizing the RNT, in coordination with CENACE and CFE. These projects include the construction of new transmission lines and substations, as well as the replacement and upgrading of existing equipment.
For the 2025 planning cycle, 15 expansion projects and 2 modernization projects have been identified, distributed across various regions of the country.
b. Expansion of the RGD in the Wholesale Electricity Market
The projects related to the RGD within the Wholesale Power Market (the “Market”) aim to meet existing and future power supply needs by increasing transformation capacity through the expansion of existing substations and the construction of new ones. A total of 34 projects have been identified nationwide under this program.
The PLADESE includes a set of binding planning projects aimed at reinforcing the power infrastructure required for the installation and operation of new generation plants considered under the PVIRCE.
These projects are based on technical analyses prepared by CENACE, which identify the transmission, transformation, and compensation requirements necessary to ensure the reliability and continuity of power supply as new generation projects, particularly those involving renewable energy and cogeneration are incorporated.
According to the PLADESE, the total estimated investment for these reinforcement works amounts to MXN $80.8, distributed as follows:
These figures are preliminary estimates and may be adjusted as additional technical studies are conducted.
The PLADESE establishes a specific expansion plan for BESS to strengthen the reliability of the System and enable the secure integration of intermittent renewable sources.
The plan envisions the installation of 8,647 MW of storage capacity by 2039, to be implemented in two stages:
During the first stage (2025–2030), 5,551 MW of storage capacity will be added, 2,480 MW through CFE projects and 3,071 MW developed by private participants.
In the second stage (2031–2039), an additional 3,096 MW will be installed, primarily linked to new renewable generation projects.
According to the PLADESE, on average, these new projects must incorporate storage systems equivalent to 30% of their generation capacity.
In accordance with the Power Sector Law, self-consumption projects that inject surplus power into the Grid must either have their own storage system or pay for such backup service to CFE.
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