Iberdrola wins contract to build Noroeste combined cycle power plant in Mexico

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14 April 2016, Electricity

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It will have a capacity of 887 megawatts (MW) and will require the investment of some US$400 million.

By the time it is commissioned in January 2019, the Noroeste combined cycle in the municipality of Ahome, north of the city of Los Mochis, will produce enough electricity to meet the consumption needs of over three million Mexicans.

Under the terms of the contract awarded in the tender procedure organised by the Mexican Federal Electricity Commission (CFE), Iberdrola will be in charge of the construction, commissioning, operation and maintenance of this generation plant, as well as being the owner of the facility. The company will also sell all of the energy produced by this combined cycle facility under the terms of a 25-year contract.

In addition to the other seven plants at which Iberdrola generates electricity under the Independent Energy Producer (PIE) modality, this new power plant boosts the strategic relationship between the Spanish company and its top client worldwide, the CFE.

The contract that has recently been awarded lends a high degree of security to the investment that needs to be made, aligning this project with the group's strategy of expanding in stable countries and sectors of activity that are regulated and predictable.

The Noroeste combined cycle power plant will be equipped with state-of-the-art technology, including M501J model gas turbines from Japanese manufacturer Mitsubishi Hitachi Power Systems (MHPS).

As well as building the plant, Iberdrola will set up all the necessary additional facilities to enable the connection to the Mexican electricity grid, such as the power lines and the transformer substation needed.

Apart from the Noroeste combined cycle, Iberdrola currently has energy generation projects under construction in Mexico with a combined investment worth some US$2 billion, which means that the company's commitment to this country is one of the most important international commitments it has ever undertaken.

To be more specific, it is building three new combined cycle (Baja California III, Dulces Nombres II and Escobedo) and three cogeneration plants (Ramos Arizpe, San Juan del Rio and Altamira).

Iberdrola has been operating in Mexico for 18 years, increasing its investments and activities on a continuous basis until it became the leading private electricity producer, with over 5,400 MW in operation, enough to serve a population of some 20 million Mexicans. The new Noroeste plant brings the capacity under construction up to 2,500 MW.

Source: MarketLine

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