Mexico’s National Center for Energy Control (Centro Nacional de Control de Energía – CENACE) has awarded the Navarrese group a Power Purchase Agreement for 290 GWh of renewable energy, which will be provided by two photovoltaic solar plants for a total installed capacity of 135 MW from 2019 onwards.
The Agreement is held between OPDE and the Federal Energy Commission (Comisión Federal de Energía – CFE). The company is to supply the Mexican energy system with solar power between 2019 and 2038.
In order to fulfill with the agreement, the Spanish multinational is to invest $160 million in the country, aiming to develop several renewable energy assets with a total installed capacity of over 135 MW.
Currently OPDE is developing a total 213 MW of renewable assets in Chile and Mexico and is to invest $250m in these countries.
The Spanish group OPDE, based in Navarra, has been awarded a 290 GWh block in the energy auction held by the Mexican Government through CENACE.
As part of its development plan, the group is to soon start the construction of two photovoltaic solar parks, amounting to a total installed capacity of 135 MW in the Mexican states of Cohauila (100 MW) and Aguascalientes (35 MW). Such parks will already be generating energy to fulfill with the Power Purchase Agreement in 2019 and will provide the Mexican energy system with solar power until 2038.
According to official sources, the auction held by the Mexican Government has lured 57 bidders from throughout the globe, and awarded 3% of the country’s energy demands, at an average price of $35/MWh for solar power. All competitors had to be previously approved by the authorities according to technical and financial criteria.
Solar and wind power have come across as the main power sources of the new generation assets; 51% of the energy awarded is supposed to be delivered by solar parks and 43% by wind plants. Among the 23 companies being awarded Purchase Power Agreements, the total investments in new assets to be carried out by Spanish companies (among which OPDE, X-Elio, Solarpack, GreenEnergy, Acciona and Alten) amounts to $1.6 bn, according to external sources. The group based in Fustiñana is itself a highlight, being expected to deliver 10% of such amount.
A solid growth platform
The success obtained in the latest auction in Mexico marks a significant step for the Navarrese company. Having being awarded its first agreements in the country, OPDE is now ready to develop a solid and competitive platform in Mexico and take advantage of future growth opportunities through renewable energy auctions to held by the Mexican Government. The group aims to strengthen its presence in a country that aims to generate 35% of its energy demands through renewable sources by 2024.
In September of the same year, the OPDE Group announced being awarded with 78 MW of renewable assets in Chile. Together with the 135 MW to be developed in Mexico, this represents a 213 MW growth opportunity and the investment of $250 m in renewable assets in the OCDE Latin American countries.
The company’s management highlights that “with the recent success cases in Mexico and Chile, we have a strong development platform for the next years to come. This platform will allow us to generate long-term, 20-year-long, stable revenues and take advantage of future growth opportunities both in these countries as well as in new markets”.
The group has a 400 MW pipeline of renewable generation assets in several states to be carried out as part of its growth strategy Mexico.