Iberdrola reinforces commitment to Mexico, where it will be investing almost €900 million between 2014 and 2016

Iberdrola plans to reinforce its commitment to the Mexican energy market between 2014 and 2016, making investments worth about €900 million in the period. This sum will be in addition to the US$2.7 billion already invested there, most of which will be allocated to the electricity generation area.
The company has built up a strong position over the last decade as the largest private electricity producer in Mexico and the second in the country after the CFE (Federal Electricity Commission). Its operational capacity is already over 5,200 megawatts (MW), mostly consisting of combined cycle gas-fired power plants. It also has a further five confirmed projects with a capacity of about 1,600 MW together.
The total capacity of Iberdrola’s Mexican combined cycle plants is currently 4,987 MW (Tamazunchale: 1,135 MW; El Golfo: 1,121 MW; Monterrey: 1,040 MW; Altamira: 1,036 MW, La Laguna: 535 MW and Enertek: 120 MW). The wind farms owned by the company are La Ventosa (capacity 102 MW following its recent extension), La Venta III (102 MW) and Bii Nee Stipa (26 MW).
Iberdrola has been operating in Mexico since 1998. The company believes that the reform of the energy sector in this country will pave the way for new areas of business. Proposals made in this regard already point towards investment needs of about US$25.5 billion by the year 2020 in the field of electricity generation, for commissioning an additional 17,100 MW.
In this regard, the company would be interested in getting involved in electricity transmission and distribution projects, which it has to date only carried out for the CFE via its engineering and construction subsidiary. It will also be looking to promote the signing of electricity supply contracts with private clients.
Last year, Iberdrola’s earnings from Mexico amounted to some €1,293.4 million, a gross operating profit (EBITDA) of €347.6 million and a net profit of €194.8 million.