Powering Mexico’s growth with strategic generation assets

Mexico

Juan Carlos Zepeda Molina, administrator of FONADIN–FIEMEX, talks to The Energy Year about how the fund is managing strategic state-owned energy assets and its role in expanding Mexico’s power generation capacity to meet rising industrial demand.

What is the FONADIN–FIEMEX fund?
FONADIN–FIEMEX is one of the Mexican government’s primary vehicles for energy infrastructure investment. Through the National Infrastructure Fund (FONADIN), which provides 65% of its capital, the trust plays a critical role in strengthening the country’s energy capabilities.
Its strategic relevance became evident in 2024, when it served as the instrument through which the Mexican State acquired 13 power plants. This transaction enabled the State to reach its goal of controlling 54% of the nation’s total electricity generation capacity. Looking ahead, FONADIN–FIEMEX is positioned to play a pivotal role in expanding Mexico’s energy infrastructure over the next six years.

What are your responsibilities as administrator of FONADIN–FIEMEX?
We are responsible for the management and operation of the assets under the FONADIN–FIEMEX trust – an assignment we approach with deep pride. These assets form part of Mexico’s Strategic Energy Infrastructure, and our mandate is to ensure their safe, reliable and efficient performance, always in alignment with National Energy priorities.
The portfolio includes 12 combined-cycle power plants and one wind farm, with a total capacity of 8.5 GW – equivalent to 15.7% of Mexico’s available capacity of 54 GW.
Our responsibilities cover daily operations, maintenance, optimisation and comprehensive commercial and corporate management. This includes handling power sales contracts, gas procurement agreements and full financial oversight – from accounting to taxation. To illustrate the scale, we currently consume around 1 bcf [28.3 mcm] of natural gas per day.
We manage this portfolio with the highest standards of safety, transparency and integrity. Beyond operations, we continuously analyse the market to identify potential areas for expansion. For example, we evaluate high-growth industrial zones and their connectivity with the CFE transmission network. When a viable project is identified, we prepare and submit proposals to the relevant authorities.
As public infrastructure managers, we work closely with the federal government to support national development goals.

How important are combined-cycle plants in Mexico’s energy landscape?
Combined-cycle power plants remain essential to Mexico’s energy system. While the long-term objective is to increase the share of clean energy – particularly from solar and wind – achieving this requires addressing the intermittent nature of renewables.
At present, combined-cycle plants provide the necessary flexibility and reliability to back up renewable generation. A decade ago, these plants operated continuously; today, they are increasingly used as flexible, fast-response assets to complement renewable energy growth.
As Mexico accelerates its transition to a cleaner energy matrix, it is equally important to expand and modernise the combined-cycle fleet to ensure grid stability.

How is FONADIN–FIEMEX contributing to Mexico’s energy security?
Mexico’s current peak electricity demand stands at around 54 GW. However, due to the development of new industrial parks, nearshoring-driven manufacturing growth and the need to replace ageing infrastructure, demand is projected to rise significantly.
According to Federal Government estimates, the country will need to add approximately 23 GW of generation capacity over the next six years to meet future demand, reaching a total of 75 GW. This will require investments of around USD 23 billion-24 billion.
FONADIN–FIEMEX is prepared to contribute meaningfully to this expansion. Through efficient asset management and project development, we believe we can deliver 3-4 GW of additional capacity. While the government ensures long-term electricity supply, our role is to guarantee that State-owned assets operate reliably, efficiently and in service of the public interest.
It is also worth noting that through the acquisition of assets under the FIEMEX structure, the State gained not only power plants but also companies that control critical infrastructure such as land, interconnection rights and gas terminals – foundational elements for the future expansion of the national grid.
All our operations adhere to rigorous standards in industrial safety, environmental stewardship and local value creation. We are honoured to serve the country through this strategic responsibility.

About FONADIN–FIEMEX
FONADIN–FIEMEX is a strategic investment platform of the Mexican government for the development and management of National Energy Infrastructure. Backed by the National Infrastructure Fund (FONADIN), which provides 65% of its capital, the entity manages a portfolio of 12 combined-cycle plants and one wind farm with a total capacity of 8.5 GW – representing 15.7% of Mexico’s installed generation capacity.
FONADIN–FIEMEX facilitated the acquisition of 13 power plants, helping the State secure 54% of national electricity generation capacity. Aligned with National Development Goals, FONADIN–FIEMEX is a key player in ensuring Mexico’s long-term energy security.

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