The Mexican utility Federal Electricity Commission (CFE) and IBERDROLA have entered into a collaboration agreement for the completion of joint projects and the exchange of ideas and experiences in the energy sector.
IBERDROLA, based in Spain and with operations worldwide, said June 9 that the agreement focuses on the areas of electricity generation, energy transmission and distribution and natural gas storage. It was ratified by the Chairman of IBERDROLA, Ignacio Galán, and the Managing Director of CFE, Enrique Ochoa Reza.
One of the highlights is the planned exchange of information on implementing new technologies and managerial experiences between the two companies. The deal also contemplates the completion of joint investment projects, where deemed convenient, at renewable and conventional generation facilities, transmission networks and other areas linked to the electricity and gas industry.
This agreement strengthens IBERDROLA’s commitment to Mexico, where it has an operating capacity of over 5.200 MW in the form of combined cycle gas-fired power plants and wind farms. IBERDROLA has been operating in Mexico since 1998 and plans to boost its presence in the Mexican energy market by investing US$5bn between 2014 and 2018. The company’s initiatives already underway represent investments to the value of US$1.5bn.
IBERDROLA has various generation projects in Mexico, including the new Baja California III combined cycle plant and the extension to the Monterrey facility, which is also a combined cycle plant.
IBERDROLA said its willingness to invest in Mexico is based on the good prospects being generated by the Energy Reform being implemented by President Enrique Peña Nieto’s government. This reform will require the investment in Mexico of some US$25.5bn in the area of electricity generation alone by the year 2020.
CFE generates, distributes and markets electric power for almost 35.3 million customers. It has 209 generating plants with an installed capacity of 52,515 MW. It has thermoelectric, hydroelectric, coal-fired, geothermal and wind powered plants and facilities, as well as one nuclear plant.