• The new Noroeste combined-cycle power plant, which will be located north of the city of Los Mochis, Sinaloa and be commissioned in January 2019, with a USD 400 million investment.
• This project, which comes in addition to the recent award of the Escobedo combined-cycle plant in the State of Nuevo León, will provide Iberdrola with an installed capacity of approximately 8 GW, thus strengthening its leadership position as the largest privately-owned electric utility in Mexico.
Iberdrola has been awarded a new large-scale power generation project in Mexico–the construction and operation of the new Noroeste combined-cycle power plant–which will have an installed capacity of 887 MW and will require an investment of USD 400 million.
The Noroeste combined-cycle power plant, due north of the city of Los Mochis in the municipality of Ahome (Port of Topolobampo), will generate enough power to meet the consumption needs of three million Mexican citizens once it is commissioned in January 2019.
In a process that met the highest international standards in terms of safeguards and transparency, the State owned Federal Electricity Commission (CFE) decided to publish this tender for a second time, with Iberdrola offering the most competitive price per kilowatt-hour.
Iberdrola will own, build, operate, and provide maintenance for the plant, with its entire energy production to be sold to the Federal Electricity Commission (CFE) under a 25-year contract with fixed capacity and energy charges.
The new plant, which joins seven other plants at which Iberdrola generates electricity as an Independent Power Producer (IPP), will allow Iberdrola to strengthen its strategic relation with CFE, which is its largest global client.
This agreement with CFE provides certainty about Iberdrola’s investment and aligns the project with the company’s strategy to achieve growth through predictable, regulated activities in stable countries.
The Noroeste plant will be built with state-of-the-art technology including M501J gas turbines provided by Japanese manufacturer Mitsubishi Hitachi Power Systems (MHPS).
In addition to the plant’s construction, Iberdrola will start up all associated infrastructure necessary to connect the plant to the Mexican national grid, including power lines and a converter substation.
Iberdrola has invested nearly USD 2 billion in power generation projects in Mexico, making it one of the largest international commitments ever assumed by the Company.
Iberdrola has a presence in Mexico that dates back 18 years. Since entering the market, the company has steadily increased its investments and activities in the country to the point of becoming its leading privately owned electric utility with an operational capacity of more than 5.4 GW, which is enough to meet the energy needs of approximately 20 million Mexican citizens. The construction of the new Noroeste plant will bring the company’s capacity under construction up to 2.5 GW.