Iberdrola to Spend $5B to Boost Mexicos Energy Sector
The funds will be used for Mexicos natural gas and renewable energy projects.
Spain rsquo;s largest utility Iberdrola SA plans to invest up to $5 billion in Mexico between 2014 and 2018 to help the country rebuild its energy industry, which was reformed by the countrys present administration. In fact, the company's initiatives already underway represent investments to the value of US $1.5 billion.
Iberdrola entered into a deal with the Mexican Federal Electricity Commission (CFE), which involves electricity generation, transmission and distribution in Mexico. The agreement also lays out a plan to build infrastructure for storing natural gas, and investing money on renewable energy projects.
The Spanish utility said the deal would also allow the exchange of information on implementing new technologies and managerial experiences between the two bodies.
The contract was signed by Iberdrola chief executive Ignacio Galan and CFE Managing Director Enrique Ochoa Reza.
Iberdrola which is the largest foreign electricity company in Mexico, has already begun work on natural gas power plants, wind farms, combined-cycle and is also eying solar power generators as well as gas pipelines.
Galan also said Iberdrola would make its natural gas reserves over the U.S. border in Texas available to Mexico.
Earlier this month, Mexico's President Enrique Pena Nieto made his first official state visit to Spain since he took office in 2012.
Mexico began reforms its energy sector in December, opening up the state-run industry to private sector and ending the decades-long dominance on power generation and natural gas production. Mexico expects to see US$25.5 billion invested in its energy sector by 2020, only in the field of power generation.
Iberdrola is not new to Mexico. The Spanish company has long been running gas-fired power plants and wind farms with a capacity to generate over 5,200 megawatts (MW) of electricity.
Iberdrola has three wind farms in operation in Mexico and a total six combined-cycle power plants spread across Monterrey and Baja California with the largest being the Tamazunchale plant.
The Spanish utility also owns the 70MW Dos Arbolitos project in south-east Mexico, which is due to come online later this year.
Iberdrola has been operating in Mexico since 1998 and plans to expand its presence in the Mexican energy market during the next four years.Top of FormBottom of Form
Iberdrola has said that it considers Mexico and Brazil as the two most strategic locations for Latin American business growth.
Mexicos telecom baron Carlos Slim is also said to be contemplating investing in the energy sector with the reforms having made the sector more lucrative.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.