Iberdrola plans to invest $5bn in Mexican energy sector
Iberdrola plans to invest about US$5 billion between 2014 and 2018 in Mexico’s energy sector as a part of a signed collaboration agreement with the Mexican Federal Electricity Commission (CFE).
The agreement was ratified by the Chairman of Iberdrola, Ignacio Galán, and the Managing Director of CFE, Enrique Ochoa Reza
The agreement for joint development of new renewable energy projects in the country also includes electricity generation, energy transmission and distribution and natural gas storage in Mexico. Iberdrola and the CFE will exchange information on implementing new technologies and managerial experiences.
The US$5 million investment includes the $1.5 billion the company is already spending in Mexico, where Iberdrola also owns an operating capacity of 5,200-MW in combined-cycle natural gas-fired power plants and wind farms, including the Baja California III combined-cycle power plant and the extension of the Monterrey combined-cycle plant.
IBERDROLA's willingness to invest in Mexico is based on the good prospects being generated by the Energy Reform being implemented by President Enrique Peña Nieto's government. This reform will require the investment in Mexico of some US$25.5 billion in the area of electricity generation alone by the year 2020.
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