Boston, MA 04/29/2014 (wallstreetpr) – The $24 billion market capped energy holding company Sempra Energy (NYSE:SRE) announced an agreement with InterGen to share a stake in a wind farm project, in Mexico. The company that holds a majority position in the Mexico-listed energy company Infraestructura Energetica Nova SAB (IENOVA) will sell half of its stake in the $300 million wind project.
However, for the deal to go through, it will require approval of both the U.S. and Mexico regulators and will become the first cross-board wind power project between the U.S. and Mexico.
The Energía Sierra Juárez wind power project is estimated to have 155-megawatt energy capacity and will be installed with 47 Vestas turbines of 3.3 megawatts. The project is expected to commence power generation by mid 2015. Wind power from the project will be sold San Diego Gas & Electric under a power purchase deal spanning 20 years.
Executive comments
According Carlos Ruiz Sacristán, CEO of IEnova, the move to partner with InterGen in the Mexican wind power project marks a milestone for the company in its efforts to find strategic partners for generation of renewable energy. Therefore, the executive expects InterGen to support the project with its experience and expertise in the development of electric generation projects.
On his part, InterGen CEO Neil H. Smith observed that IEnova is an ideal partner that is rich in complementary skills that can support the development and operation of renewable projects in Mexico.
Opportunities in the renewable market
Sempra Energy (NYSE:SRE), through IEnova, develops and operates energy projects in Mexico. The company invested about $2.4 billion by end of 2013 in various energy infrastructure facilities, in Mexico. The investments included natural gas transportation, storage and electricity production. Therefore, the company has earmarked additional $1.8 billion investment in development of new energy infrastructure facilities.
The opportunities in the energy sector are huge and even more exciting are the opportunities for renewable energy. Wind and solar power projects are coming up in many parts of the world as energy utilities acquire or partner in the renewable energy to comply with regulatory measures. Moreover, the need to combat climate change can be seen increasing the demand for renewable energy and Sempra Energy (NYSE:SRE) believes it can put its resources into the renewable projects to create value for the shareholders. And it is already doing just that.
