Iberdrola USA – the American division of the Spanish utility giant proposed to merge with New Haven utility parent UIL Holdings – agreed on Tuesday with Mexico’s Federal Electricity Commission to invest $5 billion in energy projects by 2018.
The first project Iberdrola committed to is a combined cycle power plant where Iberdrola would connect the plant to the grid, supply it with natural gas, and purchase the power it generates. The company also discussed helping Mexico install pumped storage hydro facilities as part of the country’s 2,800 megawatts of energy planning.
Iberdrola secured preferential supply of natural gas to its facilities, and the company is studying the feasibility of several natural gas power plants, totally 3,000 megawatts in new capacity.
Iberdrola has operated in Mexico for the last 15 years with assets of $4 billion and 5,260 megawatts of installed capacity.
