Iberdrola’s Future Investments in MexicoBy Paloma Duran | Fri, 11/20/2020 - 14:46
The Spanish company Iberdrola is still interested in collaborating and investing in Mexico, as long as the government respects permits and legal frameworks related to renewable energy and private investment.
During the first Energy Forum organized by the National Association of Plastic Industries (ANIPAC), Hatsican Díaz Gatica, Leader of the Commercial Team at Iberdrola, said the company has invested MX$150 billion (US$7 billion) in Mexico over the past 20 years, reported La Razón.
Díaz said in the coming years the company plans to invest US$3 billion in the construction of five plants. Currently, two are being completed, another two are under construction and one is still being planned.
In an interview with MBN, Vicente Aparicio, Commercial Director Mexico Iberdrola, said that the company’s commitment to Mexico is for the long-term. Its investments are capital-heavy and take time to see returns, which is on par with the country’s energy sector. The company aims to provide the clients with low-cost, reliable energy so they can offer fair prices to its clients in Mexico.
BloombergNEF analyzed that solar and onshore wind projects currently have the lowest level cost of electricity (LCOE) out of all newly built generation projects - one factor is the cheaper battery storage, reported Renewable Energy Now.
Aparicio said Iberdrola has 24 power plants in operation in Mexico: 16 combined-cycle and cogeneration plants, six wind farms and two solar parks. Moreover, Iberdrola seeks to expand more because companies in the automotive sector increasingly are demanding sustainable energy to meet their own commitments, according to MBN.
Díaz Gatica said the company’s short-term strategy in the country is to continue with the regulatory and legal frameworks that allow a good participation of private companies in the energy sector. He added that Iberdrola has the willingness to collaborate with the government and emphasized that after many investments, the government cannot erase or reject the company, reported La Razón.
Despite the decision of the President and Executive Director of the company, José Ignacio Sánchez Galán, to halt new investments due to the government’s decision to stop renewable projects, Iberdrola and the government are still collaborating, reported La Razón.
Díaz Gatica said the company has energy plants working and available energy to sell. In addition, Iberdrola assured there are no limitations or risks in its supply. However, he added that in case of new projects, the company will require the permission of the government and this can affect future investments, reported La Razón.