Iberdrola has signed a collaboration agreement with the Mexican Federal Electricity Commission (CFE) for joint development of new renewable energy projects in the country.
As part of the agreement, the company will invest $5bn into Mexico's energy sector over the next four years.
Iberdrola chairman Ignacio Galan and CFE managing director Enrique Ochoa Reza have signed the agreement, which covers the exchange of ideas and experiences in the energy sector.
The deal also includes electricity generation, energy transmission and distribution and natural gas storage in Mexico.
The deal is likely to strengthen the company's commitment to Mexico, where it has an operating capacity of more than 5.2GW in wind farms and combined cycle power plants.
Under the agreement, the team will exchange information on implementing new technologies and managerial experiences.
Iberdrola's generation projects in Mexico include the new Baja California III combined cycle power plant and the extension to the Monterrey facility, which is also a combined cycle plant.
Iberdrola, which started operations in Mexico in 1998, noted that its expansion plans in the country are based on the good prospects of Energy Reform, under which the government calls for around $25.5bn in investment for electricity generation by 2020.
The company is planning to invest appeoximately $5bn in Mexico between 2014 and 2018, with initiatives worth $1.5bn already underway.
Image: Iberdrola chairman Ignacio Galan and CFE managing director Enrique Ochoa Reza during agreemet signing. Photo: courtesy of Iberdrola, SA.