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The MOU signed by the two companies in February sets in motion a plan to explore opportunities to incorporate new technology and operating practices to improve the state utility's services, and was signed in the wake of a similar agreement between Siemens and Mexico's ministry of economy in the same month to develop projects in key industries, and which is expected to generate US$200mn in investment in Mexico.
The agreement with Siemens eyes the modernization of Mexico's transmission and distribution infrastructure, digitization solutions and the construction of a smart grid.
CFE chief executive Jaime Hernández (pictured, left), signed an agreement this past weekend with Siemens president and CEO Joe Kaeser (center), in the presence of Mexican President Enrique Peña Nieto and German Chancellor Angela Merkel during the latter's state visit.
Siemens has pledged to continue work on the incorporation of new digitization technologies to make the country's grid more competitive and to reduce costs.
"The strategic collaboration between CFE with a global sector leader such as Siemens will allow the utility to continue strengthening its operations and as a result improve its services to its more than 41mn clients across the country," Hernández said.
For his part, Kaeser described the German company as "a key partner in Mexico's energy reform."
The agreement fits into the CFE's business plan, launched in March, which is aimed at reducing costs and modernizing, Hernández said.
Louise Goeser, CEO of Siemens Mexico and Central America, said the new projects developed jointly with CFE will lead to job creation and greater demand for trained talent, and will allow Siemens to strengthen its generation capacity in Mexico together with the CFE and its subsidiaries.
CFE has been carrying out grid upgrades in Mexico City and other states across the country to improve efficiency and stem technical losses, and said in 2014 it would invest US$40bn in the modernization and expansion of the national grid.