In 1995, the Energy Regulatory Commission (CRE) was created to regulate activities related to the participation of private investment in the power and natural gas sector. CRE is responsible for issuing permits to private entities for power generation and the transmission of natural gas. The 2014 energy reform and new laws transforming the entire power industry in Mexico will consolidate these diversification efforts. The new electricity law contains provisions to grandfather the regulations and permits granted or applied for by the Project under the previous law.
The Mexican power grid is divided into nine zones, seven of which are interconnected and form the National Interconnected System (SIN). The Project will be located in the North Zone, which includes the state of Chihuahua and Durango. According to the Mexican Ministry of Energy (SENER), the generation capacity of Chihuahua was 2,121 mega-watts (MW) in 2012. The proposed Project will be the first utility-scale solar project in the state and the second largest solar plant in the country.
The Project comprises the design, construction and operation of a 13.7
MW solar plant and includes the following components:
The energy generated will be purchased pursuant to long-term power
purchase agreements (PPA) by Leoni, S.A. de C.V. a global cables and
systems company and by La Salle in México, a private educational
The Project will help reduce the demand for electricity generated by fossil-fuel-based power plants, and since solar-based power generation produces zero fuel costs and emissions, it will displace related harmful emissions. The anticipated environmental outcomes from the implementation of this project are the displacement are the displacement of 16,509 metric tons/year of carbon dioxide (CO2), 0.1 metric ton/year of sulfur dioxide (SO2,) and 57.6 metric tons/year of nitrogen oxides (NOx.).
The Project is anticipated to produce approximately 40.1 gigawatts-hour (GWh) of zero‐carbon electricity in the first year of operation, equivalent to the annual energy consumption of approximately 5,838 households.
In addition, clean technologies such as solar energy require no water for electricity production, whereas fossil-fuel‐fired generation is typically water intensive.
|Total Project Cost||Reserved|
US 18.5M - NADB Loan
|Other Funding Partners||
Market - rate loan