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30/06/2015

IBERDROLA AND MEXICO’S FEDERAL COMMISSION OF ELECTRICITY SET TO DEVELOP JOINTLY ELECTRICITY AND GAS PROJECTS

 

In the framework of the agreement signed last year by both companies which contemplated Iberdrola investments of around $5 billion by 2018
 
Projects cover the main areas of Mexican Energy Reform: investment in more competitive clean generation plants, energy pumped storage and gas supply


The Federal Electricity Commission (CFE) and Iberdrola have agreed on the joint development of energy projects in Mexico, in the framework of the cooperation agreement signed in May 2014.

At a meeting in Mexico City, Ignacio Galán, who is in Mexico on the occasion of the state visit by the King and Queen of Spain, and the CEO of CFE, Enrique Ochoa Reza, have addressed the outlines of the different action areas which coincide with the core strategy of the energy reform implemented by President Peña Nieto: replacing old, expensive and polluting power generation plants with facilities that are more economically efficient and environmentally friendly; the search of competitive solutions for energy storage, a key factor in the development of renewable energies; and optimizing the exploitation of gas resources in Mexico.

Among the projects analyzed by Enrique Ochoa and Ignacio Galán is the Tamazunchale II combined cycle power plant, where the potential collaboration would include the construction of the plant's interconnection to the national grid, the supply of natural gas and, possibly, the purchase of the power produced at the plant.

Iberdrola and CFE will also share experiences and best practices in the field of pumped-storage hydroelectricity in which Iberdrola is the world leader, with 3,500 MW installed capacity in Spain and the UK. The potential for hydropower development in Mexico is reflected in the construction of 2,800 MW under the country's energy planning. Currently, pumped-storage is the technology that allows for the largest scale and most competitive energy storage, providing greater security of supply and thus becoming the ideal complement to other renewable sources.

With regards to optimizing the exploitation of gas resources, the agreement provides for the preferential supply of natural gas to Iberdrola by the CFE in new projects as well as the joint management of upcoming contracts. Iberdrola is studying the feasibility of several combined-cycle and cogeneration power projects totaling more than 3,000 MW of installed capacity.


Iberdrola in Mexico

After more than fifteen years in the country, Iberdrola is the first private electricity company in Mexico and the second after the Federal Electricity Commission. With assets of nearly $4 billion, Iberdrola operates 5,260 MW power capacity, servicing a population of over 15 million people in Mexico.

Iberdrola´s activity in Mexico is focused on the production of electricity through clean and competitive sources (combined cycle cogeneration plants and wind farms), in line with the objectives of the Energy Reform launched by President Peña Nieto.


Iberdrola´s Operating Power Plants in Mexico

Power Plant

Technology

State

MW

Enertek

Co-generation

Tamaulipas

   160

Femsa Titan

Co-generation

Nuevo León

     40

Monterrey

CCGT

Nuevo León

1,040

Altamira III y IV

CCGT

Tamaulipas

1,036

La Laguna

CCGT

Durango

   535

Altamira V 

CCGT

Tamaulipas

1,121

Tamazunchale

CCGT

S. Luis Potosí

1,135

      TOTAL GAS

   

5,027

La Ventosa

Wind farm

Oaxaca

   100

Bee Nee Stipa

Wind farm

Oaxaca

     26

La Venta III

Wind farm

Oaxaca

   103

TOTAL WIND

   

230

TOTAL

   

5,257

 
 

In the coming years, Mexico will continue to be one of Iberdrola´s major investment destinations. Currently, the company is developing projects worth several billion euros, with €1 billion in power plants under construction.


Projects Under Construction

Power Plant

Technology

State

MW

Baja California III

CCGT

Baja California

300

Monterrey V

CCGT

Nuevo León

300

KCM Ramos Arizpe

Co-generation

Coahuila

  50

Dynasol Altamira

Co-generation

Tamaulipas

  60

Pier II

Wind farm

Puebla

  65

Dos Arbolitos

Wind farm

Oaxaca

  70

 
 

Furthermore, since 2001 Iberdrola has developed engineering projects in the country totaling $2 billion and is implementing projects in energy networks as well as conventional and wind power generation.