CFE to Finance Up to $3.5 Billion in Transmission via Fibra E with Private Capital

CFE will finance between $3 billion and $3.5 billion in electricity transmission networks through its Fibra E, the only financial vehicle with access to revenues from the National Transmission Grid (Red Nacional de Transmisión, RNT). Iván Cajeme Villarreal, director general of CFE Capital, outlined the plan on July 29, 2026, at a Fitch Ratings forum in Mexico City.

The figure is part of an $8.5 billion transmission investment plan for the current administration, covering 130 projects for substations, high-voltage lines, and transformation capacity, as reported by Bloomberg Línea. Fibra E is the only instrument that allows private capital to participate in the RNT, an exclusively state-owned asset, without CFE directly encumbering its fiscal balance sheet. Villarreal explained that "these are structures that must be assembled very carefully to provide the certainty that investors require." Expanding the transmission network is critical to connecting new generation capacity, from both CFE and private and co-investment projects, with the industrial centers of northern Mexico and the Bajío region, which are growing on the back of supply chain nearshoring. The model is being closely watched by other state-owned utilities across Latin America seeking mechanisms to expand grids without relying exclusively on public budgets.

Looking further out, CFE plans to add 32 gigawatts (GW) of additional installed capacity by 2030, of which 25 GW correspond to projects the company will develop directly or indirectly, with a total estimated investment of between $30 billion and $42 billion, according to Fitch Ratings. Marta Veloso, managing director at Fitch, cautioned that execution depends on the company's operational capacity: "The money exists, but investors are still demanding certainty" on cash flows, regulatory stability, and contract bankability. Seven out of every ten new megawatts will come from renewable sources under 25-year power purchase agreements; the remainder corresponds to firm capacity.

CFE Capital is analyzing the issuance of approximately $1 billion in additional Fibra E debt this year, according to finance director Eugenio Amador, as reported by Bloomberg Línea. The capacity to execute all 130 projects and the regulatory certainty demanded by institutional investors, a question other state-owned utilities in the region are watching closely, will determine whether the model scales at the pace the national grid requires.

This article was written with artificial intelligence assistance based on verified sources and reviewed by a human editor before publication.