PUERTO PEÑASCO, Mexico — Construction kicked off this month on the third phase of Mexico’s Puerto Peñasco photovoltaic plant, a massive solar project that promises to boost local jobs, cut down on fossil fuels, and position the country as a leader in renewable energy in Latin America.

The massive solar complex is built on about 2,000 hectares (roughly 5,000 acres) of desert land located approximately 27 kilometers (17 miles) east of downtown Puerto Peñasco, along the road toward Caborca. This remote spot takes full advantage of Sonora’s intense sunshine while keeping the panels away from residential areas and the popular beaches.

The plant, run by Mexico’s state-owned utility, the Federal Electricity Commission, or CFE, is already one of the region’s biggest solar sites. Phases one and two, which went online in 2023 and 2024, add up to 420 megawatts of power – enough to light up hundreds of thousands of homes. The new third phase will tack on another 300 megawatts of solar panels, plus about 100 megawatts of battery storage that can hold energy for three hours. That means it can store extra power from sunny days to use at night or when clouds roll in.

A fourth phase is in the works for another 300 megawatts. When all four phases wrap up by 2028, the whole complex will hit 1,000 megawatts – making it the largest solar plant in Latin America and one of the top 10 worldwide. The total cost for the last two phases is expected to top $700 million.

The project is part of Mexico’s bigger push for green energy, called the Sonora Plan for Sustainable Energy. It aims to power homes and businesses in Sonora and Baja California with clean solar power instead of oil or gas. The extra energy might even get exported to the U.S., since Puerto Peñasco sits just south of the Arizona border. Sonora Gov. Alfonso Durazo has called it a “cornerstone” of the state’s energy future.

For Puerto Peñasco, the plant means big economic wins. Each phase is set to create more than 1,000 direct and indirect jobs, from electricians and welders to truck drivers and office staff. Local leaders, like Mayor Alejandro Verdugo Angulo, stress that hiring focuses on people from the area to keep money flowing into town. That boosts restaurants, shops, and services, helping families here get by better.

Mexico’s solar market is booming, growing about 14% each year through 2031. With this plant, Puerto Peñasco isn’t just a beach town anymore – it’s a key player in Mexico’s shift to a greener grid. Construction on phase three should take about two years, with full power expected by mid-2027.

About the author: Joseph Sanchez is an AMPI-certified real estate agent with RE/MAX Legacy, developer of Viviente at Sandy Beach, president of Rocky Point Home Builders, and a U.S. Combat Veteran. He resides here in Puerto Peñasco with his wife and three children and is originally from Chicago. For more information, visit www.rockypointrealestate911.com on the internet or email rockypointrealestate911@gmail.com.

A general view of the largest solar plant in all of Latin America, which is being built by the state electric utility CFE, in Puerto Penasco, Sonora state, Mexico, February 2, 2023. REUTERS/Raquel Cunha/Pool