Cubico Sustainable Investments, a global provider of renewable energy, has been awarded power-purchase agreements (PPA) in Mexico’s second long-term electricity auction. The PPAs are for the 250-MW Mezquite wind project and the 290-MW Solem solar PV project, representing a total investment of around US$ 700 million.
“This is a very important milestone that positions Cubico among the top players in the renewable energy sector in Mexico,” said Ricardo Diaz, Head of Americas at Cubico.
The company intends to raise financing for US$ 500 million and will invest, along with its minority partners, $ 200 million in equity to start the construction of these projects early next year. The plan is to have both projects operational between 2018 and 2019.
The Mezquite wind project is located in the state of Nuevo Leon in the Northeast of Mexico, and will form part of an 800-MW portfolio of wind projects under development acquired by Cubico from Banco Santander in 2015. The Solem solar PV project is located in the state of Aguascalientes in Central Mexico,
“This is the beginning of a new era for Cubico in Mexico that sets solid foundations to move forward with our growth plan and long-term investment strategy in the country,” said Osvaldo Rance, Head of Mexico at Cubico.