The Diplomat
Iberdrola, through its subsidiaries in Mexico, has signed an agreement of intent with the state-owned company Mexico Infrastructure Partners (MIP) through which it undertakes to sell 8,539 megawatts (MW) of installed capacity, including 8,436 MW in combined cycle gas and 103 MW of wind power, for a total of some 6,000,000 euros. 436 MW of combined cycle gas and 103 MW of wind power, for an amount of around 6,000 million dollars (around 5,478 million euros), an amount that could be modified depending on the closing date of the transaction and other possible adjustments usual in this type of agreement, the company reported.
With this transaction, which accounts for 80% of its business, Iberdrola is withdrawing its positions in Mexico, a country in which in recent years it has suffered numerous attacks and accusations from the government of Andrés Manuel López Obrador.
Specifically, the divestment operation includes the combined cycle gas plants, which operate under the Independent Power Producer regime contracted with the Federal Electricity Commission (CFE) in Monterrey I and II, Altamira III and IV, Altamira V, Escobedo, La Laguna, Tamazunchale I, Baja California, Topolobampo II and Topolobampo III, together with the La Venta III wind asset, which account for 87% of the total installed capacity to be divested, and the Monterrey III and IV, Tamazunchale II and Enertek private gas-fired combined cycle plants.
The transaction is subject to the agreement and signing of the definitive contracts by the parties, as well as obtaining the necessary regulatory approvals and compliance with certain conditions customary in this type of transaction.
The transaction is financially supported by Mexico’s National Infrastructure Fund (Fonadin) and other public financial entities linked to the Mexican government.
Iberdrola Mexico indicated that it will continue to serve its existing customers in Mexico, for which it plans to enter into power purchase agreements with the companies being transferred in order to provide Iberdrola Group companies with the energy and power needed to develop renewable generation in Mexico and meet their current and future objectives in the country.
