The $250m combined cycle power plant is designed to meet the electricity demand of the region's industrial sector.

Featuring latest technology advances, the Dulces Nombres II is designed to run more efficiently, with greater availability, reduced maintenance needs and improved environmental performance.

Iberdrola CEO and Chairman Ignacio Galán said: “This strong investment program is our contribution to the intense development and transformation process on which Mexico has embarked, aimed at supporting the transition towards a de-carbonized model that enhances the economy's competitiveness for the ultimate benefit of the people of Mexico and their quality of life.”

Iberdrola said that the new power plant increases its electricity generation capacity to 6GW in the country.

By 2020, the company plans to commission 10 new power plants including between gas-fired units and renewable energy projects in Mexico with an investment of $3bn.

This would bring the company’s total installed capacity in Mexico to 10,000MW by the end of the decade.

Iberdrola earlier received a contract to build 850MW Noreste combined cycle plant by 2018 in Mexico.

The Noroeste plant will feature Mitsubishi Hitachi Power Systems (MHPS)-built M501J model gas turbines.

Power generated from the facility will be sold to the Mexican Federal Electricity Commission (CFE) under 25-year power purchase agreement.

Image: Officials during commissioning of Dulces Nombres II power plant in Mexico. Photo: courtesy of Iberdrola, S.A.