Iberdrola Could Exit Mexico Through US$4.7B Power Plant Sale

Spanish energy giant Iberdrola is reportedly preparing to fully exit Mexico’s power market, according to anonymous sources cited by Spanish outlet El Confidencial. The company has allegedly hired Barclays to coordinate the sale of its remaining 15 power plants, valued at around US$4.7 billion.

“Iberdrola continues with its quiet strategy of withdrawing from businesses or countries where legal certainty is lacking,” the report states.

The news follows the company’s landmark 2024 sale of 55% of its Mexican assets to the federal government for US$6.2 billion, a deal the administration framed as a “new nationalization” of the electricity sector.

Today, Iberdrola México retains 2.6GW of installed capacity: 1.232GW from wind and solar, and 1.368GW from combined cycle gas-fired and cogeneration plants. These assets generated 5.3TWh in the first half of 2025.

President Claudia Sheinbaum addressed the rumors during her Thursday morning press conference, rejecting the idea that Iberdrola’s potential departure is linked to a lack of legal certainty. She urged legacy self-supply permit holders to regularize their status under the current regulatory framework to avoid issues like Iberdrola faced back in 2024.

“There is no reason for that; the current rules are clear,” Sheinbaum said. “If they do choose to leave, it is not a problem. There are many other companies that can participate.”

She also clarified that Iberdrola has not officially confirmed its exit from the country, nor is the government currently seeking to acquire the remaining plants, though she left the door open for future discussions.

Despite speculation, Iberdrola continues its operations in Mexico, including a recent lighting project at Oaxaca’s Santo Domingo Temple and ongoing collaboration with local governments to promote engineering talent and sustainable development.