Under the divestment, Iberdrola’s 12 combined-cycle power-generation plants and a wind farm with a combined capacity of 8,539 MW became part of the trust led and managed by independent infrastructure fund manager Mexico Infrastructure Partners (MIP)
Iberdrola completes sale of 8.54GW CCGT and wind assets in Mexico to MIP for a sum of about $6.2bn. (Credit: Iberdrola, S.A)
Iberdrola has completed its previously announced sale of 13 Mexican power assets with a combined capacity of 8.54GW for around $6.2bn.
The divestment, which includes 12 combined-cycle power-generation plants and a wind farm, became part of the trust led and managed by Mexico Infrastructure Partners (MIP).
According to an Iberdrola statement, the sale represents 55% of company’s gross operating profit (EBITDA) in Mexico. This includes the associated contracts and 460 related jobs.
The Spanish utility company will retain 15 plants along with all its private customers and its renewable projects portfolio, and will seek to grow its wind and solar assets in Mexico in the coming years.
Iberdrola stated that 87% of the divested gas-fired combined cycle power stations are operating under the regime of Independent Energy Producer and are contracted with the Mexican Federal Electricity Commission (CFE).
These plants include 1.2GW Tamazunchale I, 917MW Topolobampo II, 449MW Monterrey I and II, 878MW Escobedo, 537MW La Laguna, 1,096 MW Altamira III and IV, 1.1GW Altamira V, 324MW Baja California, and 766MW Topolobampo III plants, as well as the 103MW La Venta III wind farm.
Besides, the privately operated 514MW Tamazunchale II, 477MW Monterrey III and IV, and 144MW Enertek combined cycle gas plants are divested.
The transaction is financially backed by the National Infrastructure Fund of Mexico (Fonadin) and other public financial institutions affiliated with the Mexican government.
Iberdrola and MIP signed the binding agreement for the deal in June 2023. It came after the signing of a memorandum of understanding (MoU) between the parties in April 2023.
In line with the divestiture, Iberdrola has also signed power purchase agreements with the trust, led and managed by MIP and a contract regarding transitional services for the temporary management of the assets sold.