Iberdrola has been contracted by the Mexican Federal Electricity Commission (CFE) to build the 887MW Noroeste combined cycle power plant in Sinaloa state, Mexico.
The facility will be built at a cost of $400m.
Under the contract, Iberdrola will be responsible for the construction, commissioning, operation and maintenance of the power plant, as well as being the owner of the facility.
The Noroeste plant will be equipped with M501J model gas turbines from Japanese manufacturer Mitsubishi Hitachi Power Systems (MHPS).
Iberdrola will also set up additional facilities such as power lines and the transformer substation that are required to connect the power plant to the Mexican electricity grid.
The plant will begin operations and will be connected to the grid in January 2019.
The electricity generated at the facility will be enough to cater to the consumption needs of more than three million Mexicans. It will be sold under a 25-year contract.
Iberdrola also has $2bn worth of energy generation projects under construction in the country. The projects include Baja California III, Dulces Nombres II and Escobedo combined cycle plants, as well as Ramos Arizpe, San Juan del Río and Altamira cogeneration plants.
The new Noroeste plant brings the company's capacity under construction up to 2,500MW.
Iberdrola has more than 5,400MW capacity in operation, enough to serve a population of 20 million Mexicans.
In November, Iberdrola inaugurated Pier II wind farm in Mexico. Located in Puebla state, the 66MW Pier II becomes the fifth wind farm commissioned by the company in the country.
Image: Iberdrola CEO Jose Ignacio Sanchez Galan during the inauguration of Mexican Pier II wind farm last year. Photo: courtesy of Iberdrola.