Spain’s Iberdrola has sold generation assets with 8.5GW of installed capacity to the Mexican state, including the 103MW Las Ventas III wind farm.
Iberdrola will receive US$6.0 billion for the assets – mostly gas-fired power plants – which will be transferred to the state-owned Mexico Infrastructure Partners (MIP).
The deal follows years of tension between the Spanish firm and the Mexican government, led by President Manuel Lopez Obrador, who wants to increase state control of the power industry. Last year, the company was hit by a record MXN 9.4 billion ($517 million) fine for illegally selling power to third parties.
Following the deal, Iberdrola remains one of Mexico’s largest privately-owned generators, operating wind farms with 845MW of capacity.
“Iberdrola considers Mexico a strategic country with potential for growth and expansion where it will show support for Mexico and the state by developing renewable capacity,” said Iberdrola CEO and chairman Ignacio Galan following a meeting with President Lopez Obrador.
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