Mexico’s state-owned utility CFE has signed two power purchase agreements with solar plants being developed by Denmark-based private equity firm Copenhagen Infrastructure Partners (CIP).

CFE Calificados, which supplies electricity to large consumers, did not disclose the duration of the contracts or the agreed price.

The two plants, the 600MW Alegría Solar plant and the 300MW Esperanza Solar project, are located in Campeche state on the Yucatán peninsula. Both projects also include battery storage capacity.

The projects will cost around US$2 billion to develop and are expected to begin commercial operations in June 2028.

The two plants, which are being developed by CIP affiliate Sunstone Power S. de R.L. de C.V., were awarded generation permits in a fast-track process organized by the ministry of energy in late 2025. They are among the first private-sector renewable energy projects to advance in Mexico since President Claudia Sheinbaum opened the sector to private capital.

Mexico is one of 15 high-growth, middle-income countries where CIP’s US$3 billion (bn) Growth Markets Fund II is focusing its renewable energy investments.

(The original version of this content was written in English)