Mexico’s CFE will increase Querétaro investment by 51.3%, to MX$64.3 million in 2026, funding transmission infrastructure and substation modernization to support the Bajío region’s industrial expansion. The state-level commitment forms part of President Sheinbaum’s national plan to add 6,000MW capacity through CFE-led projects maintaining 54% state generation while enabling MX$4.75 billion in private renewable investments across 11 states. The coordinated public-private framework addresses Mexico’s rising electricity demand from nearshoring and manufacturing growth while meeting international climate commitments through expanded solar and wind capacity.
Mexico’s CFE will allocate MX$64.3 million (US$3.64 million) to Queretaro in 2026, marking a 51.3% real increase from the MX$679.9 million budgeted in 2025, data from the Center for Public Finance Studies shows. The additional MX$384.4 million under budget category 53 will fund improvements to the state’s electrical transmission and distribution infrastructure. The investment program encompasses maintenance operations, substation upgrades, operational equipment purchases and transmission network reinforcement, along with new strategic infrastructure development.
Priority projects include the Conín-Marqués Oriente and San Ildefonso-Tepeyac transmission lines, substation maintenance initiatives and sub-transmission line work throughout Queretaro. Funding will also support technological equipment, electrical protection systems and capacity expansion in the Bajío region, identified as vital for industrial growth.
Governor Mauricio Kuri González announced in September 2025 that CFE planned to invest MX$1.2 billion in Queretaro’s energy infrastructure during 2026 to bolster electrical supply. The resources would finance new substation installations and voltage quality enhancements through the federal budget, expanding capacity to accommodate industrial and demographic expansion. 
The governor stressed that these initiatives are essential to preserving Queretaro’s competitive position by ensuring reliable electrical supply for incoming businesses and the state’s economic advancement.
National Energy Expansion
The Queretaro investment announcement aligns with President Claudia Sheinbaum’s broader energy expansion strategy. CFE will launch projects in 2026 to generate 6,000MWthrough the construction of four combined cycle plants, three photovoltaic plants and three clean energy projects comprising two photovoltaic facilities and one wind farm. “The construction of all these plants begins next year, some gas, one diesel and others solar, to be able to guarantee our international commitments with the convention on climate change, CFE does that,” Sheinbaum said.
The initiative maintains a 54-46 split between state and private generation, with CFE responsible for 54% of national electricity generation and private investment covering 46%. “What we are guaranteeing is that the Mexican state will hold 54% of electricity generation and the private sector 46% — a new scheme that brings order, planning, and certainty, even for private companies that want to generate power and have won a tender. That is what we are announcing today,” Sheinbaum said.
Previously, CFE’s Director General, Emilia Calleja Alor, said construction has started on the Francisco Pérez Ríos Tula II combined cycle plant in Hidalgo, which will replace an oil-fired thermoelectric plant. Basic and detailed engineering is underway for combined cycle plants in Salamanca II in Guanajuato, Altamira in Tamaulipas and Mazatlán in Sinaloa, adding nearly 3,000MW of capacity with an investment of MX$80.9 billion.
Calleja Alor noted that the Los Cabos internal combustion plant in Baja California Sur is being reevaluated due to current market conditions to safeguard proper development of its works.
Construction of the third phase of the Puerto Peñasco Photovoltaic Plant has also begun, with the fourth phase starting in February to complete Latin America’s largest photovoltaic complex at 1,000MW capacity with a total investment of MX$13.3 billion. The Carbón II and Río Escondido photovoltaic plants in Coahuila will add 556MW with an estimated investment of MX$15.4 billion.
Private Sector Participation
Energy Minister Luz Elena González Escobar said that a call for private electricity generation projects issued Oct. 17 will organize, prioritize and expedite private investment applications for 20 new projects. The portfolio includes 15 photovoltaic projects with 2,471MW capacity and five wind energy projects adding 849MW, totaling 3,320 MW of generation and 1,488MW of storage. These projects represent US$4.75 billion in investment across 11 states: Campeche, Hidalgo, Yucatán, Guanajuato, Oaxaca, Tamaulipas, Quintana Roo, Puebla, Veracruz, Zacatecas and Queretaro. 

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