Mexico is beginning to move beyond the stage of expectations and enter the most complex phase of its renewable energy reactivation: executing a portfolio of projects on time and in the proper manner, which will require industrial capacity, logistical coordination, and solutions adapted to the country's technical particularities.
The Federal Electricity Commission (CFE) selected 37 projects from 31 developers, totaling approximately 7,411 MW, in the first round of its mixed-use scheme. Of these, 6,710 MW are photovoltaic solar technology. In addition, the Ministry of Energy (SENER) is seeking to award 4,595 MW of photovoltaic and concentrated solar power (CSP) projects, with mandatory energy storage.
In that scenario, the availability of modules, structures, or inverters will be only one part of the equation . The industry will have to demonstrate that it can manufacture, transport, install, and adapt its solutions without compromising the planned commercial operation dates, primarily between 2027 and 2029.
“The supply chain is now moving from theory to practice,” said Armando Muñoz, BDM Mexico of Solar Steel, a Gonvarri Solar Steel company , during an exclusive interview conducted within the framework of Future Energy Summit (FES) Mexico 2026.
The new portfolio represents one of the most significant signs of recovery in the Mexican electricity market in nearly a decade. However, the volume of capacity under development also simultaneously increases the demand for engineering, steel, equipment, skilled labor, financing, and construction services.
“I think the key word for the supply chain is anticipation,” Muñoz warned.
Advance planning will be crucial because projects will not only have to meet tighter deadlines, but will also face technical, financial, and regulatory requirements that are more stringent than those seen during the previous renewable energy expansion cycle .
“I believe that the demands —speaking technically, financially, regulatoryly— will become increasingly higher,” the executive stated.
This transformation is already beginning to be reflected in contract prices. Mixed-use projects awarded by the CFE reportedly signed agreements in the range of $40 to $50 per MWh , compared to an average of $136 per MWh among the rejected proposals. These figures are far from the $17.77 per MWh achieved in the 2017 auction due, among other factors, to mandatory storage, financing costs, and new technical requirements.
Local capacity and technological adaptation
For Solar Steel, the value chain's response cannot be limited to increasing inventories . "The supply chain plays a key role where companies have to anticipate needs in order to have traceability, production capacity, and so on," Muñoz pointed out.
Gonvarri Solar Steel believes its manufacturing background allows it to transfer industrial processes developed in other sectors to the photovoltaic industry. The group has over 30 years of experience in the automotive industry , a capability that, according to the executive, facilitates the adaptation of products and operations.
However, the international origin of a technology or its performance in other markets does not, in itself, guarantee its functionality in Mexico . Developers and engineering, procurement, and construction (EPC) companies seek suppliers capable of responding to specific environmental and geotechnical conditions.
“What they are valuing is local presence, technical support, track record in execution: how much you have done in the country,” explained the company representative.
This approach sets it apart from companies that arrive with standardized products, but without experience in applying their systems within the national market.
“They highly value adaptability: adapting the technology to the local market because Mexico has very specific characteristics—windy areas, corrosion areas, complex terrain,” Muñoz explained.
For this reason, close technical collaboration during engineering and construction is more important than a relationship based solely on the delivery of components . The availability of local teams allows for a faster response to design modifications, on-site issues, or schedule changes.
Solar Steel has a commercial and logistical structure in the country, as well as a warehouse and a local product , with the aim of serving both large developments and smaller-scale installations.
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Utility scale regains prominence
Although opportunities are distributed across different scales, utility scale projects are once again at the center of the Mexican market .
“I think there is opportunity in all market segments. Utility is obviously what is most mentioned now because of all the priority and mixed-use projects,” the executive acknowledged.
This shift comes after a period in which much of the private sector activity focused on distributed generation and solutions for commercial and industrial clients. During 2025, Mexico added approximately 990 MW of distributed generation , reaching a cumulative total of 5,189.71 MW and more than 600,000 interconnected installations. Over 99.5% of that capacity is photovoltaic technology.
For the past seven or eight years, Solar Steel has maintained an active presence in solar rooftops, industrial buildings, and carports. Reactivating large-scale power plants does not mean abandoning these segments, but rather preparing specialized teams to serve them simultaneously.
The challenge will be particularly relevant because the first joint call for proposals started from a pool of over 200 initiatives and nearly 38 GW under evaluation , before selecting the 37 awarded projects. The level of interest confirmed the availability of projects, but the next filter will be their bankability and construction capacity.
To serve that market, the company divides its capabilities by project type. “We have a team dedicated to utility projects, and we have a team dedicated to industrial buildings and carports for all segments,” Muñoz explained.
Storage: from add-on to requirement
The expansion will not be driven solely by photovoltaic capacity. Storage is beginning to be structurally integrated into large-scale projects and commercial and industrial solutions.
The 37 projects awarded under the mixed scheme must incorporate battery systems equivalent to 30% of their capacity for three hours , although some initiatives could exceed that condition.
The addition of batteries puts extra pressure on schedules and coordination among suppliers. Developers will need to integrate generation systems, infrastructure, electrical connections, energy management, and storage solutions from the early stages.
In the segment behind the meter, Solar Steel also observes a definitive shift in demand. “Today you can’t talk about a commercial and industrial project without storage; they go hand in hand,” asserts Muñoz.
From the awards to the works
For Solar Steel, 2026 represents the year in which regulation and opportunities begin to materialize , but the definitive signal will come when the projects enter construction and operation.
The market already has bidding processes, contracts, and new calls for tenders. The remaining question is whether developers, manufacturers, EPC contractors, financial institutions, and authorities can synchronize their decisions to avoid delays.
“What would I like to see happen in 2027? I would like to see execution and implementation,” Muñoz stated.
The industry will need to anticipate purchases, finalize supply contracts, and secure human resources before demand peaks. It will also need to quickly address the specific technical requirements of each site.
“I would like to see those projects mature, become active in the market, and start operating, and for the market to begin moving forward,” concludes Solar Steel’s Mexico Business Development Manager.
The wave of projects will no longer be measured solely by the MW announced or awarded. Its true scale will depend on how many are actually built, connected, and operational within the agreed timeframes. For the Mexican solar power sector, the preparation phase begins even before the first machines arrive on site.