Iberdrola said recently that it is moving forward on the joint development of energy projects in Mexico, thanks to a framework of cooperation agreement signed with the Federal Electricity Commission (CFE) in Mexico.
Iberdrola already has a 15-year history in Mexico and it operate 5,260 MW of power generation serving over 15 million people in Mexico.
The recent agreement provides for the preferential supply of natural gas to Iberdrola by the CFE in new projects as well as the joint management of upcoming contracts. Iberdrola is studying the feasibility of several combined-cycle and cogeneration power projects totaling more than 3,000 MW of installed capacity.
Iberdrola said June 30 that the parties have addressed the outlines of the different action areas which coincide with the core strategy of the energy reform implemented by President Peña Nieto: replacing old, expensive and polluting power generation plants with facilities that are more economically efficient and environmentally friendly; the search of competitive solutions for energy storage, a key factor in the development of renewable energies; and optimizing the exploitation of gas resources in Mexico.
At a meeting in Mexico City, Iberdrola Chairman and CEO Ignacio Galán, who is in Mexico on the occasion of the state visit by the King and Queen of Spain, and the CEO of CFE, Enrique Ochoa Reza, formally reached agreement on key points.
Iberdrola and CFE will also share experiences and best practices in the field of pumped-storage hydroelectric power. Iberdrola is a world leader in pumped storage with 3,500 MW of installed capacity in Spain and the United Kingdom, according to a news release.
The potential for hydropower development in Mexico is reflected in the construction of 2,800 MW under the country’s energy planning. Currently, pumped-storage is the technology that allows for the largest scale and most competitive energy storage, providing greater security of supply and thus becoming the ideal complement to other renewable sources, Iberdrola said.
Iberdrola´s activity in Mexico is focused on the production of electricity through clean and competitive sources such as combined-cycle cogeneration plants and wind projects, in line with the objectives of the energy reform launched by President Nieto.