Iberdrola, Spain's largest utility, will begin producing more electricity in Mexico than in its home region in 2018. This follows an aggressive expansion plan into the Americas.
Chief executive officer Ignacio Galan has been working to build power networks and generation plants in Mexico and Iberdrola is now the second largest utility in the country, behind state-owned utility Comisión Federal de Electricidad.
The Spanish utility has 6,000MW of installed capacity in Mexico through 17 combined cycle and co-generation natural gas plants (four more plants currently under construction). Additionally 365MW are provided from wind farms and 270MW of photovoltaics.
The utility also has more customers in Brazil than any other non-state power company and is the No. 3 network operator in Britain through its Scottish Power Ltd. unit.
“This year we are going to produce more electricity in Mexico than in Spain, which gives you an idea of the size of the business we have there," Galan said.
“This year we are probably going to make around 80, 85 terawatt-hours in Mexico and in Spain it’s going to be in the range of 60, 65. It is very important.”
Iberdrola's supply will meet Mexico's growing power demand, the result of increased industrial activity and energy sector reform that resulted in liberalised generation and commercialisation.
The regulatory reform now allows Iberdrola to sell electricity to industrial groups, as well as to state-owned power company CFE.