COMBINED CYCLE PLANTS IN MEXICO

Iberdrola consolidates its position as the largest private electricity producer in Mexico with four new combined cycle plants

Iberdrola, through its subsidiary in the North American country, already has two combined cycle plants in Mexico that, along with the other two currently under construction, will have a total installed capacity of 3,434 MW. After the commissioning of these facilities — the last is scheduled for 2020 —, the company will have an installed capacity of more than 10,000 MW and will consolidate its position as the largest private electricity producer in the country.

Location
Nuevo León and Sinaloa

Total installed capacity
3,434 MW

Total investment
1.65 billion dollars

Start of operations
Escobedo: January 2019
El Carmen: 2019
Topolobambo II: 2019
Topolobambo III: 2020

Combined cycles
in Mexico

Since its arrival in Mexico almost 20 years ago, the Iberdrola group has been increasing its investments and activities continually until establishing itself as the largest private electricity producer in the country. Today, the company has a total of 6,577 megawatts (MW) already in operation(1) and it provides a service to more than 20 million Mexicans.

Most of this installed capacity corresponds to the combined cycles, 5,568 MW(1), a figure that in the next two years will increase by 3,434 MW, when the four power stations that the group is currently building in the country through its subholding Iberdrola México will be commissioned.

ESCOBEDO AND EL CARMEN POWER STATIONS

The El Carmen plant, located in the town of the same name in Nueva León, commenced operations at the end of September 2019. With an installed capacity of 866 MW, enough to supply one million Mexicans, it is the company's first in which the power is intended for sale to industrial customers in the Wholesale Electricity Market (MEM by its Spanish initials). The plant required an investment of approximately 450 million dollars and boasts the most modern gas turbines in the country.

Next to it, its twin the Escobedo plant, which was commissioned in January 2019, will supply power to around 100 industrial groups in sectors such as automobile, chemical, metallurgical, cement and textile. With an investment of around 400 million dollars, it has an installed capacity of 878 MW. The power station has two latest-generation gas turbines and a steam turbine.

TOPOLOBAMPO II AND III PLANTS

On the other side of the country, in the state of Sinaloa, the Topolobampo II power station is being built and is also scheduled to become operational in 2019. Located to the north of the city of Los Mochis, it will require an investment of around 400 million dollars and will have an installed capacity of 911 MW.

About 20 kilometres to the south, next to the city of Ahome, the Topolobampo III plant is being built with an investment of 400 million dollars and it will have an installed capacity of 779 MW. After commissioning this final project in 2020, the group will have an installed capacity of over 10,000 MW in Mexico.

LONG-TERM CONTRACTS

Iberdrola Generación México will be the owner of these four generation plants and it be responsible for their construction, operation and maintenance. The company will sell all the energy produced in Escobedo, Topolobampo II and Topolobampo III to the Mexican Federal Electricity Commission (CFE) — its biggest customer worldwide — through a 25 year contract with fixed capacity charges.

This long-term agreement with the CFE offers great security to the Iberdrola group's investment as it brings the project into line with the company's strategy of growing in regulated, predictable activities that are located in stable, high rating countries.

For its part, El Carmen will be the first combined cycle power station fully dedicated to the sale of energy to the wholesale market. Iberdrola México has signed a long-term Power Purchase Agreement (PPA) with the CFE marketing company, CFE Calificados, to supply it with 150 MW from this power station. Moreover, a further 264 MW have already been sold to industrial customers.

In addition to the construction of the four plants, Iberdrola will construct all the other ancillary facilities needed to enable it to be linked to the domestic power grid, including power lines and a transformer substation.

 

(1)Data at the close of the Nine months 2018.