Cubico, CFE partner on 500 MWh of battery storage in Mexico

Cubico Sustainable Investments and Mexican state-owned utility CFE will jointly develop five solar and wind projects across four Mexican states with a combined capacity of 578 MW and 175.7 MW/500 MWh of battery energy storage, backed by nearly $1 billion of planned investment.

The projects will provide a combined 578 MWac of renewable generation capacity and 175.7 MW/500 MWh of battery energy storage. According to Cubico, the BESS installations will provide approximately three hours of storage duration.

The five projects were awarded to Cubico under the Federal Electricity Commission’s mixed investment scheme, through which the state utility selected 37 renewable energy projects totaling 7,411 MW. Cubico’s portfolio represents about 7.8% of the total awarded capacity.

The projects will be located in Tamaulipas, Nuevo León, Campeche, and the Yucatán Peninsula. Cubico has not disclosed the capacity or technology of each project but said the portfolio includes both solar and wind facilities.

Construction of the first project, the 78 MW Altamira Solar plant in Tamaulipas, is scheduled to begin in December 2026. The project will include battery storage and is expected to generate about 200 GWh of electricity annually. Construction of the remaining four projects is expected to start during the second quarter of 2027.

The partnership establishes a 25-year collaboration framework. Under the mixed investment model, CFE must retain at least a 54% direct or indirect ownership stake in each project company, while the private partner may hold up to 46%. Cubico will provide the required equity capital and manage project development and construction, while CFE may contribute land, power purchase agreements, permits, and technical studies.

The model allows power purchase agreements of up to 25 years with CFE Basic Supply or CFE Qualified Supply, covering around 70% of electricity production. The remaining output may be sold into Mexico’s wholesale electricity market or to third parties. The battery systems will operate under availability agreements with CFE.

Cubico currently owns and operates about 600 MW of renewable energy capacity in Mexico and has a domestic development pipeline of approximately 1.5 GW. Globally, the company reports more than 3.6 GW of installed capacity and a development pipeline exceeding 17 GW.

From pv magazine Mexico