Mexico's state-owned power utility, the Federal Electricity Commission (Comision Federal de Electricidad, CFE), has launched a tender for the construction of a 600 km long power line to be built and operated by the private sector between the Tehuantepec isthmus in Oaxaca and Yautepec in the Morelos state in central Mexico.
The HVDC line will be able to transport 3,000 MW of power, reducing electricity losses by around 8% compared to usual AC lines and cutting construction costs to US$1.7bn. The project will enable to export power from South-eastern Mexico (large renewable resources but lack of transmission infrastructures) and to improve power supply in central Mexico where electricity consumption is highest.
Final bid terms for the project will be published in November 2016. Offers will be due in February 2017 and awards issued in April 2017. The winner will receive a 25-year Build, Operate and Transfer (BOOT) contract. Commissioning of the line is scheduled by 2020.