Federal Electricity Commission

The nuance that many companies overlook, and the reason December is a golden window, is that the law refers to assets placed in service, not merely contracted.

For solar, that means the system must be installed, tested, and interconnected to the grid according to the procedures and technical manuals used by CFE and the regulator.

In practice, this translates into a simple rule.

a contract signed at the end of december with no prior engineering or permitting will almost certainly not deliver a system in operation before the year closes a project that already has its design structural analysis permits and interconnection paperwork advanced can realistically reach commissioning in the following weeks depending on the state and the workload of local cfe offices where queues are longer or documentation is incomplete any delay in inspection or meter changes pushes the first kilowatt hour into january and with it the entire tax benefit into the next fiscal year The system will still be valuable, but the opportunity to impact the current year's ISR will have passed.

Like you say, it's a long-term partnership.

It's a joint venture between CFE as the state-owned utility here in Mexico and a series of private developers, in my case, Cubico.

And we've entered this joint venture.

It's a long-term agreement of 25 years.

From a lender's perspective, and this has been central to the establishment of the mixed investment scheme, I know it's been front and centre recently, of cfe in the government's mind when they've put this scheme together is ensuring it's bankable we are talking multi-gigawatts deployment in in renewables in mexico in the immediate future and you you need a lot of uh capacity financial capacity within the market to fund all of this both on the equity side also on the debt side as well and so i'm pleased to say that the lenders um be those local banks, international project finance banks, development banks, export credit agencies, they're all very positive about the scheme.

It's an incredibly attractive scheme from their perspective.

We're talking about long-term contracted offtake with a state-backed utility that's investment grade.

Those opportunities don't come around too often.

According to the recent National Electricity System Development Plan, Prodison 2025-2039, the integration of up to 5,000 megawatts in storage systems is envisaged by 2030 to provide grid reliability.

Without storage, DG cannot effectively buffer demand peaks or relieve pressure on the Federal Electricity Commission.

CFE The technology of 2026 must be capable of managing not only generation but also load shifting to inject clean energy when the grid needs it most.

Competitiveness And Scope 3.

Understanding the Value Chain In 2026, the energy debate is no longer just a national issue, but one of global competitiveness.