The transmission and distribution businesses in Mexico represent the final frontier for CFE’s old monopoly as these areas remained under state control after the Reform. This does not mean, however, that those industries have stayed the same. New lines such as the upcoming HVDC project from Oaxaca to the center of the country can benefit from private investment while, at the same time, the increasing participation of clean, renewable power sources in the energy matrix creates new challenges for the country’s electric infrastructure. The high incidence of energy theft and other technical and nontechnical losses are also on the agenda for companies and authorities alike.

In this chapter, technology solution companies discuss the opportunities to help both CFE and private players optimize their electric networks. They also analyze the different approaches to the concept of the “smart grid” resulting from the need to improve measurement and efficiency from the source to the final consumer, taking into account emerging technologies such as energy storage to maximize the potential of renewables.