The 290 Solem solar PV project is Cubico's debut into the solar market in the Americas. Source: Flickr/David O
Multinational renewable energy and water infrastructure company Cubico Sustainable Investments has bagged 540MW of PPAs for wind and solar projects in Mexico’s second long-term power auction.
The company will construct its 250MW Mezquite wind project and its 290MW Solem solar PV project under the PPA with a total investment of around US$700 million. Cubico will raise financing for US$500 million and will invest, together with its minority partners, US$200 million in equity for the construction of the projects, which are set to be operational between 2018 and 2019.
The 250MW wind project will be located in the state of Nuevo Leon in the northeast of the country, and forms part of an 800MW portfolio of wind projects under development acquired by Cubico from Banco Santander in 2015. As for the solar PV project, that will be located in the state of Aguascalientes in central Mexico and is jointly owned by Cubico and partner Alten Energias Renovables. It also marks Cubico’s first solar venture in the Americas, as well as being the most sizable PV asset in the company portfolio, according to Nacho Ruiz, head of investments & strategy.
The utility-scale projects netted under the auction are good news for the renewable energy leader, with Ricardo Diaz, head of Americas at Cubico, revealing in a statement: “This is a very important milestone that positions Cubico among the top players in the renewable energy sector in Mexico.”
"This is the beginning of a new era for Cubico in Mexico that sets solid foundations to move forward with our growth plan and long-term investment strategy in the country,” added Osvaldo Rance, Cubico’s head of Mexico.