Mexico, Iberdrola ink energy pact

Iberdrola has pledged to invest $5bn in Mexico’s energy sector through 2018 as part of cooperation agreement with the country’s Federal Electricity Commission (CFE).

The accord covers joint projects in both renewable and conventional power generation, electricity transmission and distribution, and natural gas storage. Iberdrola will also transfer  technology, and best-practice management policies and practices.

Iberdrola is already the largest private sector electricity generator in Mexico with more than 5.2GW in operating nameplate capacity – wind farms and combined cycle natural gas-fired plants.

The pact was signed by Iberdrola chief executive Ignacio Galan and CFE Managing Director Enrique Ochoa Reza.

Galan says that Iberdrola’s willingness to boost investment in Mexico is based on opportunities opening as a result of energy sector reforms being implemented by President Enrique Pena Nieto's government.