Enel secures 593 MW of wind projects in Mexico's auction

Enel SpA (BIT:ENEL) said today it will build four wind farms with a combined capacity of 593 MW in Mexico after securing contracts for the projects in the country's third long-term power auction.

The Italian energy group has won the right to sign 15-year contracts to supply electricity and 20-year contracts to provide related clean certificates from the four projects. The power and certificates will be sold to Mexico's Camara de Compensacion, the body managing the power purchase agreements (PPAs) between sellers and public or private buyers from the tender, the company said.

Enel will invest about USD 700 million (EUR 591m) in building the facilities that are due to start operations in the first half of 2020 and are expected to generate 2.09 TWh per year. The 100-MW Amistad II, 100-MW Amistad III and 149-MW Amistad IV will be constructed in Acuna, in the northern state of Coahuila, and the 244-MW Dolores plant will be located in China, a municipality in the northeastern State of Nuevo Leon.

The Italian group has also been successful in Mexico's previous two tenders. It says it is the country's biggest renewable energy operator in terms of installed capacity and project portfolio.

Enel recently signed a deal to sell 80% of a portfolio consisting of 429 MW of renewable plants in operation and 1,283 MW of projects under construction to Canadian institutional investor Caisse de depot et placement du Quebec and CKD Infraestructura Mexico SA de CV, the investment vehicle of local pension funds. The agreement is on build, sell and operate basis.

(USD 1 = EUR 0.844)

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