Canadian private investment firm JCM Capital has set up a company in Mexico to invest in utility-scale solar PV projects.
In a statement, the company said it would focus on projects over 20MW, with an initial aim of developing 100MW of projects.
It said that it was seeking suitable project sites and development partners and would look to invest with municipal and state governments, as well as corporations, to provide energy through power purchase agreements.
Justin Woodward, JCM executive vice president, said: “This company is a key part of our corporate strategy to grow our business internationally.
“We anticipate that Mexico will have explosive growth potential considering its high irradiance levels and the increasing cost of energy.”
JCM said that it would fund project-specific development costs such as land acquisition, engineering, legal advisors, permitting and interconnection studies.
Michael Strait, JCM chief operating officer, said: “JCM has the necessary capital, construction and long-term financial partners, as well as solar PV expertise to complement our local partners’ market knowledge and project management capabilities.”
JCM has already backed 200MW of renewable energy systems in North and South America, and said that it believes that South America represents an attractive proposition due to increased demand and political will to diversify away from hydro, oil and gas imports.
A statement on the company’s website said: “Mexico also has some unique and solar friendly regulations that allow for use of the transmission and distribution systems at very little cost, making it possible for systems and customers to be in different locations, and for a single system to service multiple customers. Adding to all these encouraging market factors is Mexico’s political stability, which will make government contracts much lower risk and reduce the costs of financing.”