Iberdrola Sells Generation Assets in Mexico for USD 6.0bn
Spanish energy company Iberdrola said it reached a binding agreement for the sale of several power plants in Mexico to the government, valuing the deal at approximately USD 6bn on a cash- and debt-free basis.
The sale, which is the largest transaction in Latin America since the beginning of 2023, marks a new phase of Iberdrola’s development in Mexico, reaffirming its position as the leading private generator of renewable energy. With the support of the government, it will continue operating its assets under market conditions and drive the energy transition in the country.
State-owned Mexico Infrastructure Partners will acquire 12 combined cycle power generation facilities and a wind farm, boasting a collective installed capacity of 8,539 MW. These divested plants represent 55% of Iberdrola Mexico's projected gross operating income for 2023 and employ over 410 personnel.
The power plants operate both under the Independent Power Producer regime contracted with the Federal Electricity Commission and for private customers. The transaction has the financial support of Mexico's National Infrastructure Fund (Fonadin) and other public financial entities linked to the Mexican Government.
Prior to the transaction, Iberdrola will carve out certain generation projects and assets, retaining ownership of 13 plants, all its activity with private customers, and its portfolio of renewable projects to be developed. Recently, Iberdrola has been granted permission to obtain a generation permit for the Santiago wind farm, located in the state of Guanajuato and having a capacity of 105 MW.
Iberdrola is a multinational electric utility company with installed capacity of more than 60,000 MW as of the end of 2022. Its operations yield an annual net generation exceeding 160,000 GWh, and the company's workforce comprises over 40,000 employees.
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