EDF EN Mexico and Mitsui & Co. closed the acquisition by which Mitsui, through MIT Renewables Mexico, S.A.P.I. de C.V. (MITRE Mexico), its Mexican unit, acquired 50 percent ownership in the common stock of Eoliatec del Pacifico, S.A.P.I. de C.V., who owns the 160 MW Santo Domingo Wind Project. The total project cost is about $381 million.
EDF EN Mexico completed the development activities and closed on the financing arrangements for Santo Domingo, which is located in Oaxaca. The wind energy project, now in an advanced stage of construction, is scheduled to start commercial operation in April 2014.
Power generated from the project will be delivered to various entities of two major private-sector corporations, based on power purchase agreements for 15 years. The agreement follows Mitsui‘s acquisition in February 2013 of 50 percent of the Bii Stinu (164 MW) wind project, located in the same area of Oaxaca.
EDF EN Mexico additionally owns a 67.5 MW wind farm in operation and 300 MW in development in Oaxaca. EDF EN Group’s portfolio of renewable energy assets includes 6,358 MW throughout 17 countries in Europe and North America. Its operation and maintenance services subsidiary extends its activities to more than 8,000 MW of renewable power assets globally.
Mitsui is the No. 2 independent power producer in Mexico, participating in six other gas-fired combined cycle power stations. The company also has presence in various infrastructure business in Mexico, including the operation of gas-pipeline, an LNG receiving terminal, local gas distribution, effluent treatment projects for refinery plants, as well as water supply and sewage treatment projects for the municipality.
With its local expertise obtained through these businesses and knowledge in power projects carried out globally, Mitsui aims to strengthen the diversified power generation portfolio in the country thereby contributing to the establishment of sustained energy supply and low carbon social infrastructure in Mexico, in order to meet the expected growth of electricity demand.