London-based investor snaps up 540MW worth of projects in country's latest clean energy auction
In news that further cements its holdings in Latin America's growing renewables sector, sustainable energy investor Cubico has won a batch of contracts in Mexico's second clean electricity auction.
The London-based firm announced yesterday it won 540MW of power purchase agreements (PPAs) for two wind and solar PV projects in Mexico - the 250MW Mezquite wind project in Northeast Mexico and the 290MW Solem solar project in Aguascalientes.
The Aguascalientes project represents Cubico's first foray into solar energy in the Americas, and is now the largest PV asset in the firm's portfolio.
Overall this second renewable power auction saw Mexico select 23 bidders for the development of $4bn worth of clean energy projects, according to various media reports, with the vast majority awarded to wind and solar developments.
Following sweeping electricity market reform by the Mexican government in 2013, Mexico held its first clean power auction in March of this year, with wind and solar firms including Enel Green Power winning contracts to generate over 2GW of clean energy. Mexico aims to drive its clean energy share to 35 per cent by 2024, up from around 25 per cent today.
Cubico said its total investment for the two projects will come to around $700m, with the firm planning to raise financing for $500m of this, and invest the equity for the remaining $200m itself along with its minority partners. Construction will begin early next year, with the two projects set to become operational in 2018 and 2019.
Osvaldo Rance, head of Mexico at Cubico, said the deals marked a "new beginning" for Cubico in Mexico, adding that it set the firm "solid foundations" to move forward with its growth plan and long-term investment strategy in the country.
The move follows Cubico's £345m investment in Brazil earlier this year, which saw it acquire two wind farm complexes with a total 392MW capacity, becoming the third biggest player in Brazil's wind sector at the time.
Further reading
from Home - Business Green http://ift.tt/2dxI28W
Advertisement
Sourced by "Home Hacks". Scouring and supporting the art of DIY home projects by sharing links and information provided by numerous active reputable DIY veterans and company's. Any projects you start please be of proper age, follow all required safety measures, and use the required protective equipment when handling any chemicals, power tools, or during any construction project. If you need advice regarding your next project we suggest visiting Contractor Talk.
