Japan’s Tokyo Gas has agreed to buy a 50% stake in French multinational utility company Engie’s renewables joint venture (JV) company in Mexico.
The JV company Heolios EnTG will develop, own and operate six renewable energy projects in Mexico. It will also be responsible for financing, building, and maintaining the projects.
The firm has already obtained approval from Mexico’s federal competition commission COFECE.
Engie executive vice-president and in charge of Latin America Business Unit Pierre Chareyre said: “We are delighted to further consolidate the relationship of mutual trust between our teams and those of Tokyo Gas with the creation of Heolios EnTG.
“This joint venture will combine our complementary areas of expertise and will enable Engie to continue to grow in a key area, the development of renewables in Mexico with Tokyo Gas. This move is fully aligned with Engie’s strategic roadmap presented during our Capital Market Day on 28 February.”
The six renewable energy projects in Mexico will have a combined energy generation capacity of 899MW, enough to meet the power requirements of 1.3 million households. Of the six projects, two will be onshore wind projects while the other four are solar photovoltaic (PV) plants.
The projects also have 15-year power purchase agreements (PPAs) in place through Mexican power auctions.
One of the projects, the 50MW wind power facility Tres Mesas 3 has already entered into commercial operations. Other power plants are under different construction stages and are expected to begin their commercial operation in 2019 and 2020.
With the new JV company, Tokyo Gas and Engie intend to support Mexico’s clean energy targets and strengthen the growth of their renewable energy business in the country.