First Reserve, a private equity and infrastructure investment firm focused exclusively on energy, has partnered with Mexico Power Group (MPG) to build the 130 MW La Bufa wind farm in Zacatecas, Mexico.
Upon completion, La Bufa will sell its generated power under a contracted off-take agreement to Volkswagen de Mexico, which is aiming to meet its targeted renewable energy standards.
According to First Reserve, the Volkswagen plant in Puebla is the largest automobile factory in Mexico and one of the largest vehicle plants in the Volkswagen Group. Construction on the wind project has already commenced, and completion is targeted for early 2017.
Once in operation, the project, representing the third wind farm First Reserve has partnered on in Mexico, is expected to bring the firm's total generated wind power in Mexico to over 600 MW.
MPG will construct the facility in partnership with Cannon Power Group and Gamesa, who is supplying the turbines. Financing is being provided by Sumitomo Mitsui Banking Corp., Korean Development Bank, Nacional Financiera and Bancomext.