Iberdrola has signed a binding agreement with Mexico Infrastructure Partners (MIP) to sell 8.54GW combined-cycle gas turbine (CCGT) and wind assets in Mexico to the investment management company in a deal worth around $6bn.

According to the terms of the agreement, the trust led and managed by Mexico Infrastructure Partners will acquire 55% of Iberdrola’s gross operating profit (EBITDA) in Mexico. This includes the associated contracts and over 410 related jobs.

Iberdrola seeks to maintain 13 plants along with all its activity with private customers and its renewable projects portfolio to continue growing its wind and solar assets in Mexico in the coming years.

The Spanish electric utility company stated that 87% of the total installed capacity to be divested are operating under the regime of Independent Energy Producers and are contracted with the Mexican Federal Electricity Commission (CFE).

Iberdrola’s assets to be sold are the 1.2GW Tamazunchale I, 917MW Topolobampo II, 449MW Monterrey I and II, 878MW Escobedo, 537MW La Laguna, 1GW Altamira III and IV, 1.1GW Altamira V, 324MW Baja California, and 766MW Topolobampo III CCGT power plants.

The deal also includes the 103MW La Venta III wind farm built in the region of Istmo de Tehuantepec.

Besides, the privately operated 514MW Tamazunchale II, 477MW Monterrey III and IV, and 144MW Enertek combined cycle gas plants are included in the agreement.

The transaction is financially backed by the National Infrastructure Fund of Mexico (Fonadin) and other public financial institutions affiliated with the Mexican government, said Iberdrola.

The binding agreement follows the signing of memorandum of understanding (MoU) between the parties in April 2023.

Iberdrola has also announced the authorisation of a generation permit by Mexico’s Energy Regulatory Commission (CRE) for the 105MW Santiago wind farm located in the state of Guanajuato.