Iberdrola has been awarded the contract for an important new energy project in Mexico, the Topolobampo III combined-cycle power plant (CCGT).
Iberdrola's new 766 MW facility in the country will be equipped with the latest technology requiring an investment of some US$400 million. The Topolobampo III CCGT will be built in the municipality of Ahome, in the state of Sinaloa, and will supply electricity to over 2.5 million Mexican citizens when it becomes operational in January 2020.
Owned by Iberdrola, the company will handle construction, operation and maintenance of the plant and will sell its production in full to the Mexican Federal Electricity Commission (CFE) under a 25-year contract, with fixed capacity fees.
This long-term agreement with CFE offers great security to Iberdrola's investment as it brings the project into line with the company's strategy of growing in regulated, predictable activities that are located in stable, highly-rated countries. In addition, the operation allows the company to strengthen its strategic relationship with the CFE, its top customer worldwide.
The Topolobampo III station will be equipped with model H01 gas turbines fabricated by GE, one of Iberdrola's major technology suppliers in the power generation business. In addition to the plant's construction, Iberdrola will commission all ancillary facilities required for its connection to Mexico's national power grid, including power lines and the transformer substation.
Iberdrola currently has power generation projects under way in Mexico with a combined investment worth around US$3 billion, which highlights the extent of the company's commitment to this country, one of the most important ever.
To be more specific, it is building three new combined-cycle plants; the North-east (Escobedo), North-west (Topolobampo II) and El Carmen, and two cogeneration plants, San Juan del Río and Altamira.
It is also developing 325 MW of wind power, with two projects, PIER (220 MW) and Santiago Wind Power (105 MW), in the states of Puebla and Guanajuato, respectively.
Furthermore, Iberdrola has taken another step forward in its commitment to renewables in Mexico by beginning construction of its first two large-scale photovoltaic power plants. With a combined capacity of 270 MW, the Hermosillo (100 MW) and Santiago Photovoltaic (170 MW) plants are in the states of Sonora and San Luís Potosí, respectively.
Iberdrola has been doing business in Mexico for over 18 years. Throughout that time it has continually expanded its investments and activities, consolidating its position as the country's largest private electricity producer with 6,000 MW already in operation, the equivalent to supplying power to over 20 million Mexican citizens.