Spotlight: The biggest thermoelectric projects under construction in Mexico

Mexico’s electric power sector is undergoing dramatic changes, chief among them being a shift in government policy to prioritize the development of public utility CFE over the country’s budding renewables market, dominated by private players.

In this context, thermopower projects have gained newfound importance. The CFE has tendered an ever-increasing number of such plants in a bid to increase its share of national power generation above the current 56%, as BNamericas reported previously.

The BNamericas project database contains information on 340 active projects in Mexico at different stages of completion. The following is a list of Mexico’s biggest thermopower projects under construction, in order of installed capacity.

Energía del Valle de México

This US$740mn project being built to the north of Mexico City is owned by CFE subsidiary Energía del Valle de México Generador.

The construction contract was awarded to General Electric México and it includes two natural gas turbines coupled with an additional steam turbine for a total generation capacity of 850MW.

Building works began on the plant in September 2018 and the most recent estimates are that it will go into enter operation before the end of this year, despite initially being expected to start up in November 2021.

Jorge Luque

Another combined cycle plant, the Jorge Luque project is undergoing a major renovation led by the CFE in coordination with electric power workers’ union SME, as part of CFE’s strategy to bolster its presence in the area surrounding Mexico City.

The project was initially expected to cost US$650mn, but reports have warned of potential cost overruns that could take them as high as US$1.46bn. 

While the project was previously expected to enter operations in March 2020, no new date for completion has been stated. The plant will have an installed capacity of 1.7GW.

Los Ramones

This US$515mn thermoelectric plant is owned by a joint venture between renewable developer Invenergy and private equity fund Mexican Energy Capital.

The project is being developed in the northeastern state of Nuevo León, near the city of Monterrey, and was originally expected to start operations in June 2020. It will have a generation capacity of 553MW.

Juandhó

The US$500mn Juandhó combined cycle project in Hidalgo state in central Mexico is being managed by Cooperativa LF del Centro in conjunction with SME. 

Kiewit Corporation is the main contractor for the project, with equipment being provided by Siemens. The plant is expected to start operating in May 2022 and will have a total capacity of 650MW.

Valle de México II

Another project tendered by CFE Generación, Valle de México II is an attempt to strengthen the company’s foothold in the area surrounding Mexico City.

It involves an investment of US$425mn for a final generation capacity of 615MW.

While the project began generating electricity in August, some construction milestones remain, with final completion expected to take place in the first half of 2021.