Legal and Commercial Implications of Mexico's New Tender for Energy Projects
On 5 June 2026, Mexico's Comisión Federal de Electricidad (CFE) and the Ministry of Energy (SENER) announced the results of a tender for new projects (Esquemas de Desarrollo Mixto, "Mixed Development Programme"), awarding 7,411 MW of generation capacity to 31 private developers. The Mixed Development Programme is the first competitive procurement process conducted under Mexico's new energy legislation, enacted on the back of the constitutional reform of October 2024 and energy laws enacted in March 2025.
The Request for Proposals (RfP) was issued in February 2026, evaluated in accordance with guidelines published in the Federal Official Gazette (DOF) on 28 January 2026. The tender received 222 proposals, 31 of which were awarded generation capacity. We consider in this note some issues that successful bidders should be considering when moving forward with their projects.
Mixed Development Programme
The projects will be developed under the mixed development programme. Under this framework CFE contributes land, permitting management, project operation, and grid integration. In turn, private parties provide 100% of the equity capital for the development of the project and undertake construction. CFE commits to purchase 70% of the output under long-term 25-year power purchase agreements, and the equity is allocated 54% to CFE and 46% to the private party. All participating investors must invest through Mexican legal entities or trusts domiciled in Mexico.
Whilst the 25-year PPA framework provides revenue visibility, the contractual terms governing cost sharing, return distribution, decision-making authority, and exit mechanisms have not been fully published in implementable form as of June 2026. This gap complicates project finance modelling and investment committee approvals.
Mexican Domicile Requirement
The requirement that all participants be Mexican legal entities or trusts domiciled in Mexico does not prohibit ultimate foreign ownership of investment structures, but creates an additional structuring layer. Infrastructure funds evaluating Mexico alongside other Latin American markets will need to price the governance complexities into their return expectations. The choice of corporate structure (Mexican subsidiary vs. trust vehicle) will also have implications for tax efficiency, repatriation of profits, and access to investment treaty protections.
Development Risks
Developers will have to complete social impact assessments, interconnection studies, permits, and financing arrangements. Each step has its own regulatory calendar, and delays in any single component compound downstream.
Therefore, investors will want to consider how these and other risks are allocated and mitigated when structuring investments under the Mixed Development Programme, and reviewing relevant PPAs and project permits.
