Mexican energy utility Cox has finalised its acquisition of the Mexican subsidiary of Spanish utility Iberdrola, bringing a renewable energy pipeline of 12GW into its portfolio in a deal worth US$4 billion.
The deal was first announced last August, and last week Iberdrola Mexico noted that it would sell an operational portfolio of the same size that was announced last year: 1.4GW of gas and cogeneration assets, 642MW of solar and 590MW of onshore wind. Iberdrola Mexico currently has an operational capacity of 2.6GW, accounting for 25% of the Mexican energy market, making it the largest single energy supplier in the country.
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Iberdrola had already made numerous divestments from its Mexican business. It sold over 8GW of combined cycle power plants in February 2024, and in 2025 had fewer operational renewable energy assets in Mexico (24) than in the other countries where Iberdrola operates, including Brazil (39), Spain (792), the UK (1,220) and the US (1,240).
Iberdrola’s Mexican subsidiary had also posted greater revenue declines than its other regional companies. Iberdrola Mexico posted a revenue of €1,411.8 million (US$1,651.9 million) in 2025, an 18% decrease compared to the previous year; this decline is more than the average 5.3% year-on-year decline in revenues reported across all of Iberdrola’s operations. The company’s gross investments into the Mexican subsidiary fell by 8.5% between 2024 and 2025.
Iberdrola said that the sale will allow it to redirect its focus towards its “regulated transmission and distribution network businesses”, and to emphasise its US and UK investments.
Enrique Riquelme, executive chairman of Cox, called the deal a “decisive step” in its growth, as the acquisition of a 12GW renewable energy pipeline aligns well with the government’s plans to push utilities towards greater use of renewable energy projects.
“This operation is framed within the vision of president Claudia Sheinbaum and her government to turn energy and water into authentic state policies at the service of inclusive and sustainable development for all Mexicans,” said Riquelme. “I have full confidence in president Sheinbaum’s management and her team, something they have demonstrated in an exemplary manner throughout this entire process.”
Mexico is aiming to shift its energy mix dramatically in the coming years, from more than half of its electricity coming from US gas imports in 2025, to a goal of meeting 45% of energy demand with clean energy generation by 2030. The involvement of utilities such as Cox will likely be an integral step if this goal is to be realised.
I Squared Capital acquires Oriden
In other acquisition news, investment manager I Squared Capital has acquired US project developer Oriden through its energy transition fund.
Oriden, which was previously owned by Mitsubishi Power Americas, has completed 13 projects, including ten solar PV facilities, two battery energy storage systems (BESS) and one solar-plus-storage project, and has a further development pipeline of 5GW. As part of the acquisition, I Squared will invest US$300 million to support Oriden’s “next phase of growth”, which includes the transition from a project developer to a full-scale independent power producer (IPP).
“Oriden represents a compelling opportunity to establish a scalable renewable energy development platform in the US,” explained I Squared fund partner Damian Darragh. “We are particularly attracted to its quality pipeline in MISO and PJM, two markets with strong fundamentals and significant demand for new clean generation.”
