Sempra’s Ienova secures PPA for 110 MW of solar in Mexico

The Mexican gas and power provider Ienova, a unit of U.S. natural gas utilities holding company Sempra Energy, announced it has signed a 20-year PPA for a 110 MW PV project in Mexico with local steel manufacturer Deacero.

According to a press release from the company, the Pima Solar project will require an investment of $115 million and will be completed in the fourth quarter of 2018.

The plant will be located in the municipality of Caborca, in the state of Sonora, northwestern Mexico.

This is one of four solar project providing power to the Mexican industry that were announced over the past few months. The Spanish developer Iberdrola announced two projects of this kind totaling 275 MW in October, while Spain-based energy company Acciona secured a PPA to sell power to a local industrial group from a 112 MW PV plant in February.

Ienova, however, said that its PPA is the first contract of sale of power signed between a private company and a developer after the introduction of Mexico’s new energy reform in late 2015.

With the reform, the government has put in place a clean energy certificate scheme that will come into force in 2018. Under the scheme, power providers and large industrial users will have to consume more renewable energy power or buy clean energy certificates.

Ienova is also developing two more solar projects in Mexico: the 53 MW Rumorosa Solar project and the 133 MW Baja california y Tepezalá II solar facility. Both projects were selected under Mexico’s latest energy auction, which was held in September.