Cubico Sustainable Investments, a global renewable energy company with an installed gross capacity of approximately 2 GW, says it has won power purchase agreements (PPAs) in Mexico’s second long-term electricity auction for the 250 MW Mezquite wind project and the 290 MW Solem solar photovoltaic (PV) project, representing a total investment of approximately $700 million.
According to Cubico, it will raise financing for $500 million and will invest, along with its minority partners, $200 million in equity to start the construction of these projects early next year and have them operational between 2018 and 2019.
The company says the 250 MW Mezquite wind project is located in the state of Nuevo Leon, in the northeast of Mexico, and forms part of an 800 MW portfolio of wind projects under development acquired by Cubico from Banco Santander in 2015.
Secondly, the 290 MW Solem solar PV project is located in the state of Aguascalientes, in central Mexico, and is owned by Cubico and its partner Alten Energias Renovables, an independent power producer focused on PV technology in southern Europe, Africa and Latin America.
“This is the beginning of a new era for Cubico in Mexico that sets solid foundations to move forward with our growth plan and long-term investment strategy in the country,” said Osvaldo Rance, head of Mexico for Cubico.