With the announcement of the purchase of 13 power generation plants from Iberdrola, the Mexican government explained that The Federal Electricity Commission (CFE) will increase its generation capacity from 39 to 55 to 55 percent of the total in the country, but in the northeast it will be where the most will be gained, going from 7 to 45 percent.
In a video through social networks, President Andrés Manuel López Obrador, accompanied by federal officials and company executives, announced this transaction, which implies that these 13 power generation plants will go to Mexico Infrastructure Partners (MIP), in order to be operated by CFE.
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The Spanish capital company explained that it reached an agreement of intent whereby the trust led and managed by MIP will acquire 8,539 MW of installed capacity, whose value amounts to approximately 6 billion dollars. In a disaggregated manner, the company detailed that 8,436 MW correspond to gas combined cycles and 103 MW to wind.
“From that moment on, surely the Federal Electricity Commission will be the operator of this new mass for the commission, which will increase its total generation capacity, from 39 to 55 percent of total generation. And, for example, in the northeast region it increases from seven percent to 45 percent, a region where the commission had almost no participation.”, said Rogelio Ramírez de la O, Secretary of the Treasury.
Today the Government of Mexico signed an agreement to purchase 13 electricity generation plants from Iberdrola that will form part of the public patrimony and will be operated by the CFE. It is a new nationalization. pic.twitter.com/gL38A7tcf9
– Andrés Manuel (@lopezobrador_)
April 4, 2023
Specialists and political actors had warned that the issue of electricity supply represented a bottleneck for nearshoring and the arrival of investments such as Tesla.
“Unfortunately the bottleneck is not the availability of land, the market or investment financing, the bottleneck is electricity, it is what is stopping the nearshoring or relocation that we are enjoying with the new conditions of the treaty”, said Ildefonso Guajardo, former federal Secretary of Economy in November of last year during a visit to Saltillo.