VW in 130MW Mexico wind PPA

German automaker Volkswagen’s Mexican unit has signed a 20-year agreement with Mexico Power Group to buy 130MW-worth of output from the planned La Bufa wind farm.

The $360m La Bufa plant, sited in the Mexican state of Zacatecas, will have a total capacity of 180MW.

The majority of that will be used to supply plants in the cities of Puebla and Silao, providing about 290GWh annually – or about 60% of their requirements – starting from September 2014, Volkswagen said.

Mexico’s Energy Secretary Pedro Joaquin Coldwell pledged to reform the country’s energy system to give such projects access to the transmission network.

The agreement is part of VW’s so-called “Think Blue” strategy, which aims to reduce the environmental footprint of plants around the world by 25% by 2018 with a focus on cutting water consumption, emissions and industrial waste.