CRE Denies Permit for Iberdrola Wind Farm in Guanajuato

Even though Iberdrola had a recent win when a Mexican judge ruled against Iberdrola’s multimillion fine, now the company is unable to start operations at its wind farm in Guanajuato, after having invested US$150 million in the construction of the facility.

The project in Guanajuato began its development in 2019 in the municipality of San Felipe. The 50-turbine park is Iberdrola’s seventh in Mexico and the first of its kind built in the state. According to the description of the project, the Santiago Wind Farm is said to generate 241 GWh, which is equivalent to supplying electricity to 38,000 Mexican homes, which could mitigate the emission of 108,000 tons of carbon dioxide into the atmosphere per year.

Despite this, CRE argued a breach in the permit that was granted in 2015 for the wind farm as it was set to be built in Villa de Reyes, San Luis Potosi, where it would supply companies like Gamesa, Sabritas, Pirelli and Maizoro. However, in May 2019, Iberdrola asked CRE to change to move the project to San Felipe, arguing that the San Luis Potosi land was leased to a third party. On March 29, CRE denied this request because the LIE expressly prohibits authorizing changes of location from one municipality to another through existing permits. According to CRE, Iberdrola would have to apply for a new permit for the plant in Guanajuato.

Guanajuato Governor Diego Sinhue described CRE’s decision as "a serious blow to competitiveness.” “This is bad news because, today, the global industry is moving toward clean energy, while a company like Iberdrola cannot operate a plant with 50 generators in San Felipe. This is a hard blow to the competitiveness not only of the state but of the country as this plant generates energy for the region. I hope that this situation can be resolved soon,” said Sinhue.