Iberdrola has signed a memorandum of understanding (MoU) with Mexico Infrastructure Partners to divest certain combined-cycle gas turbine (CCGT) and wind assets with a combined capacity of 8.54GW in Mexico to the latter in a deal worth around $6bn.

Under the MoU, the trust led and managed by Mexico Infrastructure Partners will acquire 8.44GW of CCGT and 103MW of wind capacity.

Iberdrola stated that 87% of the total installed capacity to be sold are operating under the regime of Independent Energy Producers, contracted with the Mexican Federal Electricity Commission (CFE).

According to the Spanish energy company, the operation is financially backed by the National Infrastructure Fund of Mexico (Fonadin) and other public financial institutions affiliated with the Mexican government.

Mexican President Andrés Manuel López Obrador said: “The agreement reached with Iberdrola, which allows progress to be made in the implementation of Mexico’s new energy policy, marks the beginning of a new stage in which the company will actively participate in the country’s renewable energy development.”

Iberdrola’s assets to be divested include the Monterrey I and II, Escobedo, La Laguna, Altamira III and IV, Altamira V, Baja California, Tamazunchale I, Topolobampo II, and Topolobampo III CCGT power plants.

The deal also includes the La Venta III wind asset located in the municipality of Santa Domingo Ingenio in the region of Istmo de Tehuantepec. The onshore wind farm is near the existing La Ventosa and La Venta II wind farms.

Besides, the privately operated combined cycle gas plants of Enertek, Monterrey III and IV, and Tamazunchale II are included in the agreement.

The transaction between the parties is conditional on the execution of definitive contracts and receipt of regulatory approvals.

The deal is anticipated to be completed within five months, reported Reuters, citing officials.

Iberdrola chairman Ignacio Galán said: “Iberdrola is grateful for the support and flexibility shown by the Mexican government in reaching this agreement, and considers Mexico a strategic country with potential for growth and expansion, where it will show its support for Mexico and the state by developing renewable capacity.”