MEXICO Law and Practice Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Transmission services are deemed to be a public util- ity and are therefore subject to expropriation under that designation. The LSE expressly grants eminent domain rights for the construction and operation of transmission works. CFE must follow the land use and occupation pro- cedures outlined by the LSE in order to obtain the necessary real estate rights for the development, con- struction and operation of transmission infrastructure. These procedures consider the execution and ratifica- tion of real estate agreements before civil or agrarian courts, as well as specific compensation concepts. 4.5 Monopoly Rights to Provide Transmission Services CFE is the only entity allowed to provide public utility transmission services. The terms and conditions gov- erning these services (including rates) are approved by the CNE (whose rules were grandfathered from the former regulator). While CFE holds exclusive rights to operate trans- mission services, private investment in transmis- sion infrastructure is expressly contemplated, either under contractor modality or through partnerships with CFE, including mixed participation schemes, financing arrangements and strategic infrastructure development vehicles where ownership and opera- tion remain under State control. In support of this, the Mexican government announced investments of up to USD6.5 billion for the 2025–2030 period, aimed at 158 transmission projects that would reinforce the NTG with 15,729 MVA of capacity. These projects are closely linked to industrial growth corridors, renew- able generation integration, storage deployment and the reinforcement of supply reliability for nearshoring- related demand. Under the current framework, transmission expansion is directly tied to PLADESE and the binding planning criteria issued by SENER. As a result, private partici- pation in transmission projects is no longer driven solely by economic opportunity, but also by strategic
PLADESE sets forth the government’s policy for the expansion and improvement of the NTG, including strategic transmission projects, regional reinforce- ment priorities and the integration of new genera- tion and storage assets into the system. SENER may designate certain transmission projects as “Strategic Projects”, allowing administrative streamlining and prioritised development, particularly where they are critical for system reliability, industrial growth corridors or mixed participation projects involving CFE. 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities As the exclusive provider of transmission services, CFE is not required to obtain a specific permit for such activities. However, transmission must comply with the General Administrative Provisions on open access and terms of service for the provision of such services issued by the CNE. Notwithstanding the exemption from sector-specific permitting, the construction and operation of trans- mission lines requires environmental, social, local and municipal authorisations (similar to those applicable to generation facilities), as well as government approv- als for crossroads, lands and water bodies within the jurisdiction of governmental agencies. These approv- als are typically contingent on the acquisition of the corresponding real estate rights. Note that environmental impact authorisations are not required for transmission infrastructure located in urban, rural, industrial or touristic areas. 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities Environmental and social authorisations related to the construction and operation of transmission infra- structure include provisions for remediation measures, ongoing monitoring protocols and obligations tied to eventual decommissioning.
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