Iberdrola has been declared the winner for two PPP power projects in Mexico during the last weeks. The company won the tender process for the development, construction, ownership, operation and maintenance of the Norte III and Baja California III combined-cycle power plants.

Norte III is a 900 MW natural gas-fired combined cycle plant, the project cost is estimated at €600 million (US$817 million). The construction of the plant will begin in May of this year and is expected to enter in commercial operation on July 1, 2016. The contract is pan to be signed on february 19, 2014. The plant will have access to natural gas supply and the interconnection point at the 230kV El Cereso substation.

Iberdrola has secured the sale  of all energy produced by the natural gas-fired combined cycle plant Norte III for a period of 25 years to the state-owned Mexican Federal Electricity Commission (FEC).

Baja California III was awarded to Iberdrola a few weeks ago. The 300 MW natural gas-fired combined cycle plant cost is estimated at €200 million (US$ 272 million).

The company has secured a 25-year power purchase agreement with the Mexican Federal Electricity Commission (CFE).The gas for this new plant will be supplied by CFE and the contract is monetized in US dollars, as are other similar projects that the Company owns in Mexico. The plant will have one gas and one steam turbine and will incorporate GE technology.

Iberdrola has already committed investments of more than €1,000 million (US$1,362 million) in Mexico, a key country in its international growth strategy.

Iberdrola's combined-cycle power plants in Mexico, currently totaling 4,987 MW of installed capacity, are: Tamazunchale (1,135 MW), El Golfo (1,121 MW), Monterrey (1,040 MW), Altamira (1,036 MW), La Laguna (535 MW) and Enertek (120 MW). The wind farms are namely: La Ventosa (totaling 102 MW capacity after its recent extension), La Venta III (102 MW), and Bii Nee Stipa (26 MW).