Iberdrola closes the sale of its combined cycle business in Mexico for 6,200 million dollars
Iberdrola has closed the sale of 55% of its business in Mexico for some USD 6.2 billion (around EUR 5.8 billion). The transaction involves the sale of 13 generation plants with an installed capacity of 8,539 MW, of which 99% corresponds to combined cycle gas plants and 87% to plants operating under the Independent Power Producer regime, contracted with the CFE.
Specifically, these are the combined cycle gas plants operating under the Independent Power Producer regime contracted with the Federal Electricity Commission (CFE), Monterrey I and II -449 MW-, Altamira III and IV -1,096 MW-, Altamira V -1,155 MW-, Escobedo -878 MW-, La Laguna -537 MW-, Tamazunchale I -1. 179 MW-, Baja California -324MW-, Topolobampo II -917 MW- and Topolobampo III -766 MW-, together with the wind power asset La Venta III -103 MW-, which account for 87% of the total installed capacity to be divested, and the private gas-fired combined cycle plants Monterrey III and IV -477 MW-, Tamazunchale II -514 MW- and Enertek -144 MW-. The more than 460 employees of these facilities will also become part of the trust led and managed by MIP (Mexico Infrastructure Partners).
This is equivalent to 55% of the gross operating profit (ebitda) in the country, including associated contracts and jobs linked to the operation.
Iberdrola will retain 15 plants, all its activity with private customers and its portfolio of renewable projects to continue increasing its wind and solar assets in the country in the coming years.
The divestment is completed in accordance with the terms agreed last June and is in line with the Iberdrola group's strategy of contributing to the fulfilment of its decarbonisation commitments.
The transaction has received financial support from Mexico's National Infrastructure Fund (Fonadin), other public financial institutions linked to the Mexican government and private financial institutions.
As part of the agreement, Iberdrola has signed energy and power purchase and sale agreements with the trust, led and managed by MIP, as well as a contract for the provision of transitory services for the temporary management of the assets sold.
Commitment to the decarbonisation of the country
The company has a portfolio of more than 6,000 MW of renewable projects in the country, of which more than 2,000 MW will be developed over the next five years, to ensure energy for its private customers, contributing to the renewable development of Mexico, which will be essential to take advantage of the opportunity offered by the alliances with the United States.
Last April, the Chairman of Iberdrola, Ignacio Galán, and the President of the Mexican Government, Andrés Manuel López Obrador, announced the start of a new phase following the signing of an agreement of intent between subsidiaries of Iberdrola Mexico MIP, which was recently concluded. Both presidents pledged to advance the development of renewable energies in the country, as evidenced by the entry into operation last September of the Santiago Eólico renewable asset with an installed capacity of 105 MW.
The Iberdrola Group, through the new investments it will make in Mexico, will reaffirm its leadership in the development of renewable energies, contributing to the country's energy transition process.
