Iberdrola and the Mexican Federal Electricity Commission (CFE) have signed a collaboration agreement which calls for the joint development of new renewable energy projects in the country.
The deal includes electricity generation, energy transmission and distribution and natural gas storage in Mexico.
Iberdrola chairman Ignacio Galan and CFE managing director Enrique Ochoa Reza have signed the agreement, which also covers the exchange of ideas and experiences in the energy sector.
As part of the deal, Iberdrola plans to invest about $5bn in Mexico between 2014 and 2018, with initiatives worth $1.5bn already underway.
Iberdrola said the deal strengthens its commitment to Mexico, where it has an operating capacity of more than 5.2GW in wind farms and combined cycle power plants.
Iberdrola, which started operations in Mexico in 1998, noted that its expansion plans in the country are based on the good prospects of Energy Reform, under which the government calls for about $25.5bn in investment for electricity generation by 2020.
Image: Iberdrola chairman Ignacio Galan and CFE managing director Enrique Ochoa Reza. Photo: Courtesy of Iberdrola, S.A.
