First Reserve joins Mexico Power Group on 130-MW wind project

Private equity firm First Reserve said Wednesday it will partner with Mexico Power Group (MPG) to build the 130-MW La Bufa wind farm in Zacatecas, Mexico.

The project has an off-take agreement to sell its output to Volkswagen de Mexico, helping the carmaker meet its renewable energy targets. Volkswagen has a plant in Puebla, the largest automobile factory in Mexico, and also operates an engine plant in Silao, Guanajuato.

Energy-focused First Reserve did not provide further details of the partnership. This is the third wind farm it has partnered on in Mexico.

MPG will construct the wind park in collaboration with San Diego-based wind energy company Cannon Power Group and Spanish wind turbine maker Gamesa, which is supplying the turbines. Construction has already begun and completion is currently expected in early 2017.

Financing is being provided by Sumitomo Mitsui Banking Corp, Korean Development Bank, Nacional Financiera and Bancomext.

MPG chief executive Gerry Monkhouse says that the clean energy that Volkswagen will consume is equal to the electricity used by 162,000 households in Mexico.

MPG has its roots as a subsidiary of Cannon Power Group.

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