IEnova and DEACERO announced the execution of a 20-year contract for the supply of clean energy that will be generated by a new 110MW photovoltaic solar power plant that will be located in Caborca, Sonora.

IEnova will be responsible for the construction, financing, operation, and maintenance of the solar plant, which will allocate 100% of its capacity to DEACERO. This represents a step forward in the consolidation of the wholesale electricity market and the promotion of clean energy. This is the first contract for the direct sale and purchase of energy between a private generator and an end user.

"The execution of this contract between two private companies is another milestone reached in the implementation process of new mechanisms that promote Energy Reform. It is a clear sign that the energy sector in Mexico is vital, provides alternatives for investors, and fosters the country’s industrial development," said Pedro Joaquín Coldwell, Secretary of Energy.

With an investment of $115 million dollars, the project will generate approximately 500 jobs during construction. It is expected to start operations during the fourth quarter of 2018, and it will contribute to achieving the country's clean energy goals.

“This project, aside from being a clear example of Sonora´s transition toward the use of clean energy, will have an important impact on the economy of the northwestern region of the state. The project will create good-quality jobs and will foster the development of a new industry that is specialized in the renewable sector,” said Claudia Pavlovich, Governor of Sonora.

Carlos Ruiz Sacristán, Chairman and Chief Executive Officer of IENova, indicated that this initiative is aligned with the firm commitment of the company to develop renewable energy. “Pima Solar will be our first solar project in operation in Mexico. When this project reaches commercial operation, we will have more than 500 MW of renewable energy generation in operation and additional 141 MW under construction,” he added.

David Gutierrez Muguerza, General Director of DEACERO, mentioned that the execution of this contract reaffirms DEACERO´s commitment to become an important participant in Mexico´s wholesale electricity market and to protect the environment, given that approximately 20% of its energy consumption will come from renewable sources. He also stated that this will contribute to the sustainability of DEACERO and its communities.