The two are investing in Heolios, a 50/50 joint-venture company to develop renewable energy projects in Mexico.
Tokyo Gas and ENGIE have a long-lasting relationship which dates back to 1983.
Following an approval from the Mexican Federal Competition Commission on March 28, 2019, Heolios EnTG will develop, finance, construct, own, operate and maintain six renewable energy projects in Mexico.
Of the six renewable energy projects, two are onshore wind plants whilst four are solar photovoltaic, totaling 898.7 MW, enough to power 1.3 million Mexican households.
A 50 MW wind power has entered into commercial operation in March 2019, ahead of schedule whilst the remaining plants will start commercial operation in 2019 and 2020.
The projects were granted 15-year power purchase agreements through Mexican power auctions.
The projects are expected to help Mexico to achieve its renewable energy target of generating 35% of its energy from clean energy sources by 2024.
“…This joint-venture will combine our complementary areas of expertise and will enable ENGIE to continue to grow in a key area, the development of renewables in Mexico with Tokyo Gas. This move is fully aligned with ENGIE’s strategic roadmap presented during our Capital Market Day on February 28th, for which ENGIE plans to add 9GW of renewables to its generation portfolio by 2021.
The partnership scheme implemented with Tokyo Gas also highlights ENGIE’s commitment to dynamic capital allocation through sell-downs and new investments ” said Pierre Chareyre, Executive Vice President of ENGIE in charge of Latin America Business Unit.
“This is a landmark achievement for us as this is the first renewable project joint-venture that Tokyo Gas will participate in outside Japan. This has definitely built momentum propelling us closer to reach our corporate target of ‘Vision 2020’”, said Kunio Nohata, member of the Board, Senior Managing Executive Officer of Tokyo Gas.