U.S. renewable energy company Pattern Energy and Mexican construction materials company Cemex have created a joint venture to develop renewable energy projects in Mexico.
Pattern Energy Group LP and Cemex Energy, a newly launched energy subsidiary of Cemex S.A.B. de C.V., formed the joint venture, the companies announced last week. Pattern said it would increase its development of solar and wind projects in Mexico through the partnership.
In particular, the companies could develop up to 1 GW in renewable energy installations. "Through this strategic partnership with Cemex Energy, we have set the goal to jointly develop 1,000 MW of renewable generation in Mexico over the next five years," said Pattern Energy President and CEO Mike Garland.
The companies did not indicate which renewable technologies it would employ on the foreseen projects, however. Pattern emphasized in a statement that it had developed more than 1 GW of wind power in California, New Mexico and Texas. Cemex, on the other hand, has already incorporated solar technology for self-consumption in its facilities. The firm has a 1.5 MW PV plant at its facility in Dominican Republic that became operational last year.
Both companies will participate in the costs of the renewable energy projects that they plan to develop in Mexico, with Cemex also indicating that it may acquire minority stakes in the facilities.
Cemex intends to increase the use of renewable energies. "This is a win-win deal that will help us make use of our experience to continue our track record as a leader in the clean energy industry and in the consumption of alternative fuels, said Cemex Energy Director Luis Farias.
Cemex has proposed to undertake energy projects in order to cover approximately between 3% and 5% of electricity consumption at its facilities in Mexico over the next five years. The new Cemex Energy division will oversee the realization of the projects. Cemex is investing some $30 million in Cemex Energy.
Mexico is currently implementing an energy reform that will lead to substantial changes in the electricity sector. The government also expects the reform to increase renewable energy projects.
Self-consumption is one of the segments that is undergoing continued development in Mexicos renewable sector. Most of the photovoltaic farms under construction in the country are based on net metering or self-supply. Photovoltaic power stands at just more than 150 MW in the country.