The Guidelines establish the rules for structuring, approving and awarding power generation projects under Long-Term Production, Mixed Investment and other schemes contemplated by the Electricity Sector Law.
On January 28, 2026, the Guidelines for Mixed-Development Schemes of the State-Owned Enterprise, Federal Electricity Commission (the “Guidelines”), issued by the Federal Electricity Commission (“CFE”), were published in the Federal Official Gazette.
The Guidelines establish the rules applicable to the development and implementation of projects under mixed-development schemes, the minimum required content of mixed-investment agreements, and the procedures for selecting private parties to participate in such projects.
Under Article 38 of the Electricity Sector Law (“LSE”), mixed-development schemes include Long-Term Production, Mixed Investment and any other scheme established under the LSE Regulations or through general administrative provisions issued by the Ministry of Energy (“SENER”).
These schemes allow CFE and its subsidiary companies to partner with private parties in power generation projects and share costs, investments, expenses and risks.
Projects must be aligned with SENER’s binding planning instruments, CFE’s Development Program and the guidelines issued by its Board of Directors. They must also be structured under sustainable financial viability criteria, with project costs and expenses recovered exclusively through project revenues.
Approval of each project requires the prior preparation of a Supporting Document by the Mixed Development Group (“GDM”), which must be submitted to CFE’s Board of Directors together with the corresponding contractual model.
The GDM is composed of representatives from different areas of CFE and other government agencies, including SENER and the Ministry of Finance and Public Credit. Its main functions include reviewing project planning, assessing feasibility, preparing the Supporting Document and approving the terms and conditions of contracts or legal instruments resulting from the selection procedures.
Projects may be implemented through contracts or other legal instruments subject to a favorable review by the relevant legal department. Under Mixed Investment schemes, the State must hold at least 54% of the common equity capital. By contrast, CFE does not contribute capital under Long-Term Production schemes.
For Mixed Investment projects, contracts must address, among other matters, the legal vehicle, capital contribution structure and financing sources, operation and maintenance arrangements, corporate governance, veto and intervention rights, risk management, asset transfers, change-in-law provisions, governmental force majeure, independent expert determination, termination, liquidated damages and arbitration.
The Guidelines also regulate the procedures for selecting private participants. These procedures may apply, among other cases, to specific projects identified by CFE, generation capacity or technology requirements, energy storage needs and legacy projects migrating from the former Public Electricity Service Law regime to the LSE.
As a general rule, selection will be carried out through a public tender, although other mechanisms may be used in specific circumstances.
Public tenders may allow qualified bidders to improve their economic proposals up to two times without modifying technical terms. The procedure may last up to 120 calendar days and may be extended once for up to 60 additional calendar days.
A restricted invitation may be used, among other cases, where there are risks to National Electric System reliability, operational synergies are sought, a prior contract has been terminated early or a public tender has failed. The procedure may last up to 80 calendar days and may be extended for up to 40 additional calendar days.
A competitive award procedure may be used in similar circumstances and may include a negotiation stage or subsequent bids during the same bid-opening session. Its maximum term is 50 calendar days, extendable by up to 10 additional calendar days.
A direct award may be used when the private party holds exclusive rights over assets essential to the project, such as real estate, patents, concessions or permits. This procedure may last up to 45 calendar days and may be extended for up to 10 additional calendar days.
Selection procedures are governed by the Guidelines and private law, and CFE’s general procurement regime does not apply.
To reinforce transparency, the Guidelines require the participation of Social Witnesses in selection procedures. These are appointed by CFE’s Internal Audit Department and are responsible for observing the procedure, identifying potential irregularities and issuing a final public report containing observations, conclusions on regulatory compliance and recommendations.
The Guidelines became effective vis-à-vis third parties on January 29, 2026, the day following their publication in the Federal Official Gazette.
For developers and investors, the new framework is particularly relevant because it provides greater clarity on the structuring, approval, award and contracting rules applicable to generation projects developed under mixed-development schemes with CFE.
Von Wobeser y Sierra is available to assist with the analysis of the Guidelines, the structuring of mixed-development projects and participation in the corresponding selection procedures.
