Iberdrola Mexico has started the construction of the first combined-cycle power plant that will sell energy exclusively to the new electricity market in the wake of the Mexican energy reform.
The new natural gas power station will be situated in the municipality of El Carmen, Nuevo León, and will have an installed capacity of 866 MW following an investment of approximately USD 450 million. The plant will sell energy solely to the Wholesale Electricity Market.
The plant’s construction will allow Iberdrola Mexico to consolidate its cooperation and strategic relationship with the Federal Electricity Commission (CFE), the electric utility’s largest global client.
The productive State-owned enterprise will supply natural gas for the plant’s operation through CFEnergía, and will be responsible for building the electrical infrastructure necessary for the power supply. Iberdrola has also signed a Power Purchase Agreement (PPA) with CFE Calificados to supply CFE’s commercial branch with 150 MW of power.
The El Carmen plant further demonstrates Iberdrola’s commitment to the industrial sector in Mexico, where it already has 1,200 supply points for major clients.
The new plant will provide new qualified electricity market users with highly competitive sustainable energy. A total of 264 MW of the plant’s 866 MW capacity has already been sold to industrial clients.
Iberdrola’s vision, outlook, and commitment to Mexico make it one of the companies that are best positioned to leverage the opportunities arising out of the Mexican energy reform.
Iberdrola Mexico is Mexico’s largest privately owned electric utility with a current installed capacity of nearly 6 GW and projects under construction that will provide another 4 GW.
Its construction projects include four new combined-cycle plants—Noreste (Escobedo), Noroeste (Topolobampo II), Topolobampo III and El Carmen—as well as two co-generation plants at San Juan del Río and Altamira.
The company is also developing 325 MW of wind power capacity through its PIER (220 MW) and Santiago Eólico (105 MW) projects in the states of Puebla and Guanajuato, respectively, in addition to the company’s two solar power projects currently under construction at Hermosillo, Sonora (100 MW) and Santiago Fotovoltaico, San Luís Potosí (170 MW).