Iberdrola S.A. said Jan. 24 that it has been awarded a contract to build and operate a 300-MW combined-cycle natural gas power plant in Baja California, Mexico.
The parent company of Iberdrola USA said work on the $270m plant and associated facilities will begin in April 2014 with commercial operation planned for August 2016.
The contract is monetized in U.S. dollars, as are other similar projects that the company owns in Mexico.
Iberdrola won the bid through an international tender process which also included a 25-year power purchase agreement with the Mexican Federal Electricity Commission (CFE). CFE also will supply the natural gas to fuel the new plant’s two General Electric (NYSE:GE) turbines.
Iberdrola noted that it has a long history in Mexican energy.
With this contract, Iberdrola, which already has an operating capacity of more than 5,200 MW in Mexico, consolidates its position as the country’s largest private electricity producer and the second largest producer in Mexico, after the state-owned CFE.
Other Iberdrola combined-cycle natural gas plants in Mexico include Tamazunchale (1,135 MW), El Golfo (1.121 MW), Monterrey (1,040 MW), Altamira (1,036 MW), La Laguna (535 MW) and Enertek (120 MW).
This is the first combined-cycle plant that the Company has been awarded in Mexico since 2004.
The company also has three wind power projects in Mexico with a combined generating capacity of 230 MW.
Iberdrola has been a leading energy producer in Mexico since 1998, and considers it, along with Brazil, as strategic locations for Latin American business growth.