Mexico announces bidding process for 3000 MW transmission project

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The Federal Electricity Commission (CFE) of Mexico has announced the bidding rules for proposals for the development of the Ixtepec Potencia – Yautepec Potencia transmission project, which includes the ​first direct current transmission line. The project represents an estimated investment of US$1.7 billion and will enter into commercial operation in the year 2021.

CFE intends to develop the project through a build, operate and transfer (BOT) scheme with a private partner. The scheme will involve equal payments for 25 years, from the start of operation of the project.

The successful bidder will build and operate seven 40 kV substations, two 500 kV converter stations, five 400 kV-AC transmission lines with a length of 437.3 km, and one 500 kV-DC transmission line with a length of 1,221 km. The lines will have a transmission capacity of 3000 MW.

The transmission line will transport the clean energy generated in the wind and cogeneration power plants of the Isthmus of Tehuantepec, Oaxaca, towards central Mexico. Thus, the project encourages the generation of renewable energy and integrates a greater electric power capacity derived from clean sources into the National Electric System.

In addition, direct current technology will allow the transmission of energy in large quantities over long distances, with lower electrical losses than in alternating current.

The project will span six regions of Mexico: Mexico City, State of Mexico, Morelos, Oaxaca, Puebla and Veracruz. It is estimated that construction will take 36 months.

The works will be contracted through a single public bidding process. It is estimated that the receipt of bids will occur in June of this year, with CFE planning to achieve commercial close by the end of July.

Transparencia Mexicana A.C. will participate throughout the process as a social witness, in order to comply with the highest standards of transparency.

This is the second major transmission project to be launched this month in Mexico. Less than two weeks ago, the government opened registration for the tender process for the Baja California Transmission Line project. This involves a 1,400 km transmission line linking Seri, in the state of Sonora, in north-west Mexico, to Cucapáh in the state of Baja California, with a capacity of 1,500 MW at ±500 kV.