VW, Mexico Power Group agree on renewable energy deal

Sept. 5, 2013

ZACATECAS, Mexico–(BUSINESS WIRE)–In a move that will expand the use of renewable energy, create jobs and help strengthen Mexico’s growing industrial base, Mexico Power Group and Volkswagen Mexico announced yesterday at an event in Zacatecas, a 20-year agreement for Volkswagen Mexico to purchase 130 megawatts (MW) of renewable energy from Mexico Power Group’s La Bufa wind farm development in Zacatecas, Mexico.

Mexico Secretary of Energy Pedro Joaquin Coldwell, Governor of Zacatecas Miguel Alonso Reyes, Mayor of Zacatecas Arnoldo Rodriguez Reyes, and executives from Mexico Power Group and Volkswagen Mexico were in attendance for yesterday’s announcement.

The wind power will be utilized in Volkswagen Mexico’s plant in Puebla, which is the largest automobile manufacturing plant in North America producing approximately 2,500 vehicles a day, and in its engine manufacturing plant in Silao, Guanajuato. Together, both plants employ approximately more than 18,000 workers. Under the agreement, Volkswagen Mexico plants will save more than 45 million pesos (3,6 million dollars) in electricity costs per year.

The agreement between Mexico Power Group and Volkswagen Mexico is an excellent example of the growth of the wind industry in Mexico and the commitment of both companies to sustainability and the environment in Mexico.

“Mexico Power Group is excited about providing clean, affordable energy to our new partner, Volkswagen Mexico and to contribute to the development in the Zacatecas region generating economic benefits and employment opportunities,” said Gerald Monkhouse, Chairman of Mexico Power Group.

During his speech yesterday, Mr. Andreas Hinrichs, Chairman of the Board of Volkswagen Mexico, emphasized that this agreement confirms Volkswagen’s environmental commitment, which is reflected not only in the development and manufacturing of more efficient automobiles and engines but in implementing manufacturing processes that are more environmentally friendly.

The executive said, “[w]ith this agreement Volkswagen Mexico prevents an annual emission of approximately 140 thousand tons of CO2 into the atmosphere. This initiative is part of Volkswagen’s Think Blue strategy, which aims to reduce the environmental mark of all Volkswagen plants around the world.”

It is expected that the La Bufa wind farm development will be completed at the end of 2014 with a total investment of 4.500 million pesos (360 million dollars). The project will demonstrate the confidence of foreign investors in Mexico and it will help to create over 300 local jobs during construction and 600 indirect jobs in the region of Zacatecas.

“The economic and environmental benefits to our community will be enormous,” said Miguel Alonso Reyes, Governor of the State of Zacatecas. “This is the kind of project we need for our people, our workers, our families and our future. We are ready to work hand in hand with Mexico Power Group and Volkswagen Mexico on this important project.”

During his speech, Mr. Pedro Joaquín Coldwell, Secretary of Energy of the Mexican Federal Government commented: “It is an honor to attend the signing of this important agreement that will expand the installed capacity of wind power in the country and testifies to the beginning of the largest wind project in Mexico that supplies a single delivery point. I am grateful to Mexico Power Group and Volkswagen Mexico, for inviting me to participate in this event, which takes on a particular importance when a reform that seeks to strengthen the energy sector as a whole is in discussion.”

“This new era requires a new mindset, a renewed relationship of the Mexican people with energy, especially as we pass from the domain of fossil fuels to those coming from renewable sources, which are friendlier to nature. In this regard, we will pursue energy reform so that it will be easier for laudable projects such as this to gain access to the transmission network, so we can democratize power generation, and encourage the installation of more plants that would take advantage of clean energy, particularly renewables.”

“Our nation has great potential in renewable energy, particularly wind power, geothermal, hydro and mini-hydroelectric, biomass and solar, and we have a great opportunity to take advantage of these resources, as is done in other countries, to take advantage of the country’s energy resources for the benefit of the environment and competitiveness in Mexico so that other companies like Volkswagen Mexico will now achieve significant savings in electricity costs,” concluded the Secretary of Energy.

About Mexico Power Group

Mexico Power Group company whose corporate is located in the State of Baja California initiated its development activities of wind power in Mexico more than fifteen years a go as a subsidiary of Cannon Power Group, wind energy company based in the city of San Diego, California with over 30 years experience in the development and operation of projects in the international market. In 2011, Cannon divided and reassigned its development activities in Mexico to Mexico Power Group, a company based in Tijuana, Baja California, Mexico, a company that is as well owned and operated separately by the Chairman of Cannon, Gerry Monkhouse together with Brian O’Sullivan, leader for many years in the wind industry and who is co-owner of MPG with Mr. Monkhouse.