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Aerial view of a solar park with its substation.

Utility scale

Blog

Topic
Utility scale
Published
September 29, 2026
Reading
8 minutes
Who it is for
Maintenance leads, plant engineering and management

Above 10 MW the whole project changes, not just the size

It is not the same project multiplied. The regulatory regime, the capital profile, the timeline, the counterparty and the nature of the risk all change. It is worth knowing the four differences before proposing one.

Solar park with control building and substation.
At this scale, interconnection matters as much as the panels.

First difference: the regime

Below 0.7 MW there is no generation permit. Between 0.7 and 20 MW, for interconnected self-supply, there is a permit with a possible simplified procedure before the National Energy Commission (Comisión Nacional de Energía). Above that, the ordinary route.

And there is a different fork that depends not on capacity but on destination: if the energy goes to the Wholesale Electricity Market (Mercado Eléctrico Mayorista) instead of your own consumption, the legal category is different — generation for the market, under article 35 — with its own set of obligations, its price exposure and its relationship with the system operator.

A 15 MW self-supply project and a 15 MW market project share the size and almost nothing else.

Second difference: capital and timeline

At this scale the project is no longer financed off the company's balance sheet and starts to be structured: long-term capital, terms of fifteen to twenty years or more, and a financial counterparty that will run its own risk analysis before committing funds.

That changes what has to be delivered. An investment-grade study stops being good practice and becomes a requirement: an adjusted baseline, a measurement and verification plan, quantified uncertainty and sensitivity runs. Without that there is no conversation with the lender.

And equipment lead times start to drive the schedule. At this scale some components have lead times measured in many months, and no proposal should carry an operation date without confirmation from the supplier that same week.

Figure 1
Three different projects, not the same project made bigger
DimensionLess than 0.7 MWFrom 0.7 to 20 MWMore than 20 MW
RegimeExempt generator: no generation permitGeneration permit; for interconnected self-supply, possible simplified procedure before the CNEGeneration permit via the ordinary route
CapitalCompany balance sheetFrom balance sheet to structured capital; above 10 MW, structuredLong-term, structured capital
TimelineSet by construction; interconnection is a formalityThe permit and interconnection set the scheduleFifteen to twenty years or more; equipment with lead times of many months
CounterpartyThe company itselfAbove 10 MW, the lender and its risk analysisFinancial counterparty that requires investment grade and performance guarantees
Capacity thresholds under the Electricity Sector Law (Ley del Sector Eléctrico); if the energy goes to the Wholesale Electricity Market, the legal category is different (article 35). Capital, timeline and counterparty describe market practice, not regulation.

Third difference: interconnection rules

In a small project interconnection is a formality. In one of this scale it is the factor that decides the site, the capacity and the date.

And the analysis is reversed: instead of designing the project and asking whether the grid will accept it, you start from what the grid can take at the candidate points and design within that. Projects of this scale that are approached the other way around usually die in the study.

That is also why, at this scale, location is evaluated before technology. Available capacity, access to gas where applicable, and the connection route weigh more than the choice of equipment.

Fourth difference: who answers for performance

In a rooftop project, if it produces less than projected, someone has an uncomfortable conversation. In one of this scale, if it produces less than committed, there are contractual consequences.

That is why availability commitments, performance guarantees with penalties and long-term operation and maintenance contracts appear at this scale. They are not commercial embellishments: they are how the project becomes financeable.

They are also why the operator matters as much as the equipment. A poorly operated asset of this scale loses production silently, and the loss accumulates over twenty years.

Figure 2
Every stage of the asset's life has someone contractually accountable
DEVELOPMENT CONSTRUCTION OPERATION · TWENTY YEARS OR MORE COMMERCIAL OPERATION EPC contract Designs, supplies and builds; warranty at handover Performance guarantee with penalties Underproduction is penalized Long-term operation and maintenance Availability commitment, measured period by period Long-term capital: fifteen to twenty years or more WHAT THE LENDER REQUIRES: A CONTRACTUALLY ACCOUNTABLE PARTY FOR EVERY STAGE
Duration of each contract is illustrative; the point is to show the order and where each one applies. This is market practice, not regulation: it is what makes a project of this scale financeable.

How this is split within the group

We are an energy group with four decades of lineage in mission-critical electrical infrastructure and cogeneration, and that lineage includes projects at the scale of tens of megawatts. We say it plainly because it is why we can hold a conversation at this scale instead of referring it to someone else.

GIS Power develops the projects that require a generation permit, market participation or long-term capital, and is currently evaluating projects above ten megawatts. It is the group company with completed work at that scale.

GTO Energy CO does its own part on projects of any size: the metering and diagnostics that feed the sizing, the facility survey, the electrical infrastructure inside the fence line, protection coordination and the reliability contract that sustains the asset after construction.

For you the practical consequence is just one: you can bring the whole project to a single table, and sorting it by regime, by capacity and by group company is our job, not yours. If your project turns out to be utility scale, we do not send you looking for someone else — we develop it within the group.

Sources

Electricity Sector Law, DOF March 18, 2025 · Regulations of the Electricity Sector Law, DOF October 3, 2025. Articles 17, 18, 19, 25, 30, 32, 35, 42 and 151.

The financial structuring and performance guarantee features at this scale are market practice, not regulation, and are presented as such. What has a legal basis are the legal categories and the capacity thresholds.

How to start a conversation at this scale

With three facts: where, how much capacity, and whether for your own consumption or for the market. With those three we place the regime and tell you what can be confirmed in weeks and what requires a study. And who in the group develops it.

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