News Article

A Company Betting on Mexico's Energy Potential

Wed, 02/24/2016 - 10:10

Being the main private utility in Mexico, Iberdrola holds a position of authority that has allowed it to embark on a five-year investment plan worth US$5 billion, enabling it to focus on diverse projects that will duplicate the company’s installed capacity of 5,000MW to almost 10,000MW. Iberdrola has been in Mexico for over 15 years, constantly increasing its investment in the country. With its current capacity, Iberdrola generates 15% of the total energy consumed in the country and provides services to over 20 million people. To date, Iberdrola has invested US$1.5 billion in three new combined cycle plants, including one of 300MW in Ensenada, Baja California, for CFE; a fifth generation unit in the Dulces Nombres combined cycle complex in Monterrey, with a capacity of 300MW; and lastly, a cogeneration plant for Kimberly Clark of 50MW in Coahuila. On top of these developments, the company has completed the expansion of the Enertek cogeneration site, increasing its capacity from 110MW to 150MW.

In the renewable energy arena, Iberdrola is an uncontested leader in wind power. This reputation is reflected in Mexico by the company’s construction of two wind farms: Pier 2 in Puebla and Dos Arbolitos in Oaxaca. Iberdrola is the second largest power generator in Mexico after CFE, and these two players are tied together with IPP contracts that will ensure the generation and sale of energy for the next 25 years. In addition, Iberdrola distributes energy to heavyweight industrial players in the country, all of its plants in Mexico boast the AENOR certification, and this year the company renovated its CSR that is bestowed by CEMEFI.

Thanks to a strong, rapid internationalization process, and the fact that it supplies power to over 120 million people, Iberdrola is able to call itself one of the major energy players in the world. The company has expanded operations in a wide variety of markets, from the UK, the US, and Spain, to Mexico and Brazil, and is committed to fully developing an active presence in these markets over the years to come. It has garnered international recognition by being the first Spanish utility and one of the main operators in the UK after the integration of ScottishPower in 2007. In the Americas, Iberdrola has captured the Brazilian market, where it acquired Elektro in order to take the lead. In the US, it has strengthened its foothold with the purchase of Energy East 2008, which is now known as Iberdrola USA. In February 2014, it agreed the integration of its US subsidiary to UIL Holdings Corporation in order to become one of the main utilities in the country. At the end of 2014, Grupo Iberdrola showcased over 45,000MW in power around the world and it now possesses a project portfolio known for its efficiency and diversity, which guarantees the company’s ability to adapt to any changing scenery in the industry.

The company continues to bet on the development of renewables, particularly wind, and the use of clean technologies, while upholding respect for the environment. These constitute the three main pillars of growth that the company has followed in the past decade, and they are one of the group’s key expansion drivers. This commitment is reflected in the installed capacity the company has in renewables, which amounts to 14,600MW.

Iberdrola is firmly committed to the development of a sustainable energy model that is capable of complying with three objectives. The model must incorporate an economic component, which will guarantee a secure supply of energy. Secondly, it must have a social pillar where it details how people will gain access to energy and improve their economic condition. Lastly, environmental compliance is a must, since it will translate to fewer emissions, more efficiency in the generation and consumption of energy, and further environmental normativity. Bearing this in mind, the strategy of Iberdrola is oriented toward satisfying the demands and expectations of its stakeholders, clients, suppliers, and employees. In its quest for leadership, Iberdrola stresses the importance of equilibrium between economic results and environmental and social compliance in all countries where its activities are developed. For over a century, Iberdrola has contributed to the economic development and wellbeing of the communities where it settles in and the territories it embarks in. Besides providing an essential service that is inextricably linked to the evolution of society, the utility is a catalyst that attracts investment, creates jobs, and strengthens local supply chains. In addition, Iberdrola takes steps in promoting R&D and technological innovation and this has a snowball effect in society. This commitment to social and sustainable development has made Grupo Iberdrola worthy of several prestigious recognitions and has consolidated the company’s presence in the top sustainability indexes.

For Iberdrola, conserving the environment is not only fundamental to life and biodiversity on this planet, but the future of the company also depends on its activities being sustainable. Ultimately, the company will not be competitive if it is not environmentally responsible. On one side of Iberdrola’s coin lies knowledge, innovation, and competitiveness, and on the other is a distinct respect for its own legacy, as well as the commitment the company has made to future generations in ensuring a cleaner and greener planet.