CFE announced the cancellation of the open tender for the construction of the high voltage DC Ixtepec-Yautepec transmission line this Friday, Jan. 25. In a document signed by the Deputy Director of CFE, Gustavi Salvador, it was argued that a financial analysis confirmed the project was not a priority for the government. In the press release, CFE denied any obligation of the government to grant compensation to interested participants.

The project was proposed by the prior government of Enrique Peña Nieto in February 2018. The first DC Transmission Line was designed to have the capacity to transport up to 3,000MW over 500kV. The project represented an investment estimated at US$1.7 billion and was scheduled to enter into commercial operation in the year 2021. It was contemplated under a BOT scheme, with equal payments for 25 years from beginning of operations.

The move is significant due to the concentration of electricity from renewable sources across Oaxaca’s Isthmus of Tehuantepec. Given the lack of storage capacity, the project was designed to carry the surplus electricity from the already-saturated Isthmus to the central region, which experiences dire shortages. The project would pass through six states: Mexico City, the State of Mexico, Morelos, Oaxaca, Puebla and Veracruz.

Due to the natural resources held by Oaxaca in terms of both wind power and solar irradiation, approximately 90 percent of clean energy in the country is generated in the Isthmus of Tehuantepec. According to data from the Government of Oaxaca, it has 24 operating parks with an installed capacity of 2,390MW and more than 1,451 wind turbines of varying capacities.


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