Spanish energy leader Iberdrola is creating waves as it gears up to exit Mexico by offloading assets worth around $4.7 billion. They’ve teamed up with investment bank Barclays to handle the sale of 15 renewable energy plants, which include six wind farms, three solar photovoltaic plants, and six cogeneration or combined cycle units.
They’ve decided to sell due to worries over Mexico’s financial and legal conditions. This action follows a 2023 deal where they sold 55% of their Mexican assets to the Mexican government for $6 billion. This was during then-President Andrés Manuel López Obrador’s efforts to nationalize the electricity market.
Before deciding to pull out, Iberdrola was the top private electricity generator in Mexico, providing over 15% of the country’s energy. However, they encountered many regulatory and operational hurdles, with government actions favoring the state-run CFE. These challenges led them to conclude it’s best to leave.
Despite leaving Mexico, Iberdrola aims to ramp up investment in electricity networks, mainly in the UK and the US. They’ve earmarked a capital boost of five billion euros for these ventures over the next few years.
For more information, you can read the full article on Mexico News Daily.
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