Mexico: The Federal Electricity Commission published its guidelines for joint development, which establish the rules for private participation in joint schemes

On January 28, 2026, the guidelines for the joint development schemes of the Federal Electricity Commission (CFE) were published in the Official Gazette of the Federation. The purpose of these guidelines is to establish the provisions applicable to the development and execution of projects under the joint schemes set forth in the Electricity Sector Law (LSE) and its regulations, as well as their selection processes.

Project approval under joint development schemes

Prior to the approval of the corresponding projects by the CFE's board of directors, the “joint development group” must prepare and submit the document containing the technical, economic, financial, environmental, social, and legal information necessary to determine the viability of such projects (supporting document).

In preparing the supporting document for each project, the possibility of offering individuals the use of the CFE's existing material, infrastructure, technological, study, and analysis resources, or intangible assets must be analyzed.

Projects must be implemented through the execution of the contract or legal instrument applicable under the LSE, its regulations, the CFE Law, and other applicable regulations.

In order to be approved, projects must be aligned with the binding planning carried out by SENER and the CFE Development Program. Similarly, the costs and expenses associated with the projects may only be recovered from the income of each project and must generate sustainable financial returns, with structuring costs being covered by the resulting financial scheme.

In joint schemes, the CFE may make contributions (including assets as part of its share of capital stock), either on its own or through its subsidiaries or trusts, to cover its share of capital stock. The foregoing is with the exception of long-term production schemes, in which the CFE does not contribute capital.

The joint development group will appoint a CFE official as supervisor to monitor and report quarterly on the progress of the specific project and, where appropriate, report on any changes, mitigation strategies, etc.

Considerations regarding the financial model, technical operating requirements, and contract content.

The economic and financial model (as part of the supporting document) must integrate all economic, financial, and technical variables to demonstrate that the project under the joint development scheme generates a positive return. It must contain at least: i) economic premises, ii) technical premises, iii) income, iv) CAPEX (capital expenditures), v) OPEX (operating expenses), vi) financing costs, vii) tax obligations, viii) cash flow, and ix) percentage of interest participation, among others.

In joint development schemes, the determination of CFE's percentage of interest cannot be less than 54% of the common capital, as defined in the applicable regulations. Payments within the projects may be made through trusts, joint ventures, commercial companies, or any other legal or financial vehicle.

With regard to technical requirements, the solution established for the corresponding joint development scheme must consider compliance with the principles and criteria of accessibility, quality, reliability, continuity, efficiency, security, and sustainability of the national electricity system and the wholesale electricity market. It must also comply with the controls and preventive measures set forth in the grid code.

Furthermore, the model contracts or legal instruments resulting from the corresponding selection processes must be drawn up by the contracting department with the approval of the legal department.

The clauses of long-term production contracts must comply, as a minimum, with the provisions of Article 81 of the LSE regulations. For projects under the joint investment scheme, they must contain, among other standard clauses: i) definition of the financial vehicle, ii) type of shares, iii) capital contributions and financing, iv) operation and maintenance of the power plants, v) transfer of assets, vi) corporate governance (committees, veto, intervention), vii) independent expert opinion in disputes, and viii) destination of assets.

When, during the term of a project, any of the grounds for termination or rescission provided for in the corresponding contract arise, the competent area must carry out an evaluation, either to conduct a new selection procedure through a restricted invitation or direct award process, or to execute or operate the project on CFE's own account.

Selection processes

The guidelines establish that the CFE must carry out the selection process for individuals that guarantee the best conditions for the national electricity system, for the State, and for the CFE.

As a general rule, selection procedures must be carried out by public tender and, exceptionally, by restricted invitation, competitive award process, or direct award, as established in the corresponding terms and conditions or the proposed application.

CFE may use a restricted invitation selection process in the following cases:

• When the reliability, security, and sustainability of the national electricity system are at risk.
• For operational synergy, to maximize electricity generation, optimize resources, reduce costs, and improve profitability through the efficient integration of processes (requires the favorable vote of six members of the CFE board of directors, including one independent member).
• The early termination of a contract, prior to the conclusion of the project's term under a joint development scheme.
• A public tender or restricted invitation procedure has been declared void.
• In the case of projects associated with permits granted under the Public Electricity Service Law and migrated to the LSE under joint development schemes.

The CFE may use the competitive selection process for awarding contracts in the same cases established for restricted invitations.

In order to carry out a direct award process, it is necessary to verify in advance that the invited individual has viable due diligence. In addition to the cases for restricted invitation, the CFE may carry out the direct award procedure when the individual has the rights or ownership of the main assets of the project, such as: real estate, permits, authorizations, patents, key equipment, and concessions, among others.