en.Wedoany.com Reported - On June 8, Canadian renewable energy company Polaris Renewable Energy announced that its three photovoltaic and energy storage projects submitted in Mexico have been selected in the first round of a national competitive bidding process under the Mexican Federal Electricity Commission's (CFE) Hybrid Development Plan, and will proceed to final contract negotiations. The three projects total approximately 250 MW of solar photovoltaic capacity, paired with over 180 MWh of battery energy storage systems.
The selected projects are located in strategically significant energy regions of Mexico. Subsequent negotiations will cover key documents including power purchase arrangements, shareholder agreements, and governance agreements.
The CFE Hybrid Development Plan was launched by Mexico's Ministry of Energy and CFE to address new electricity supply capacity. The project solicitation process began in February 2026, and submitted projects were evaluated in accordance with the Hybrid Development Plan guidelines previously issued by the Ministry of Energy. According to information disclosed by Polaris, the final selection size announced by CFE and the Ministry of Energy on June 5 exceeded the original target, with approximately 8,000 MW of projects advancing to subsequent stages. All three of Polaris's projects passed the first round of competitive screening, providing the company with a clearer project entry point in Mexico's new energy market and extending its renewable energy asset portfolio in Latin America and the Caribbean—which already includes geothermal, hydropower, solar, and wind assets—to the development of large-scale solar-plus-storage projects in Mexico. The company currently operates and develops assets in markets including Nicaragua, the Dominican Republic, Panama, Ecuador, Peru, and Puerto Rico. If the final agreements for the Mexican projects are signed, they will serve as an additional growth platform in the region's energy transition.
The key to this round of Mexico's Hybrid Development mechanism lies in connecting the needs of the public power utility, the construction capabilities of private developers, and a long-term contract framework. As the core entity in Mexico's power system, CFE needs to supplement dispatchable, financeable, and grid-connectable new power sources against the backdrop of growing industrial, commercial, and residential electricity demand. Private developers, in turn, require stable contracts, clear revenue streams, and predictable project governance structures to support bank loans, infrastructure funds, institutional capital, and strategic investor participation. The photovoltaic portion of Polaris's projects can provide new clean electricity, while the accompanying energy storage helps smooth intraday output fluctuations, enhance grid integration flexibility, and provide regulation capacity during peak loads, regional power strain, or periods of high renewable energy integration pressure. Compared to standalone solar projects, solar-plus-storage combinations are more easily incorporated into grid-side comprehensive dispatch and better align with Mexico's future direction for new power sources, shifting from mere capacity expansion to system support capability building.
The three projects still need to complete final project agreement negotiations and execution. CFE expects the final agreements to be signed by the end of July 2026, at which point project capital expenditures, construction timelines, and more specific regional layouts will be further clarified. For Mexico's electricity market, the progress of these projects will influence the initial implementation outcome of the CFE Hybrid Development Plan. For Polaris, the results of the contract negotiations will determine whether its Mexican solar-plus-storage platform can move from the project selection stage to the substantive development stage.
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