China State Power Investment Corporation acquires Mexico renewable energy company Zuma Energia.
Zuma Energia is Mexico’s largest independent renewable generator, with 818MW of installed wind and solar capacity across the country.
The deal, through SPIC’s Hong Kong based subsidiary China Power International Holding, follows hot on the heels of China’s deepening expansion into Chile’s electricity sector with the acquisition of the largest distributor Compañía General de Electricidad (CGE).
The terms of the deal have not been released but there is some uncertainty around the advance of renewables under Mexico’s current administration, which has put a brake on the earlier rapid developments.
“SPIC and CPIHL are very excited for Zuma to join the SPIC family. The investment of SPIC in Zuma shows our commitment and sustained support for the generation of clean and renewable energy, as well as our confidence in the Mexican economy,” said SPIC president, Qian Zhimin in a statement.
“Zuma complements and synergises our existing investments in the region and will contribute to the operational and investment development in the countries in the region.”
Zuma Energia is SPIC’s first acquisition in Mexico but the company already has a regional presence in Brazil and Chile. Globally the company counts more than 165GW of installed generation capacity, of which just over half are clean energies.
Zuma Energia was established in 2014. Its assets comprise two solar plants, 162MW La Orejana in Sonora state and 182MW Santa Maria in Chihuahua, and two wind farms 50MW Ingenio Oaxaca in Oaxaca and Mexico’s largest, 424MW Reynosa in Tamaulipas.
“We are excited about this new stage in Zuma’s career. We have built a robust platform to seek multiple avenues for regional growth and the support from SPIC will allow us to continue our mission to make a significant contribution to a global clean energy system,” said CEO Adrian Katzew.