Mexico power watch: New project suspensions, Actis buys EVM assets

More Mexican renewables projects are facing development hurdles due to the country's controversial policy on private sector generation.

The interconnection contract for the Quetzal solar park in Durango state is delayed indefinitely, leaving the project stranded until the issue is resolved, according to Spanish developer Naturgy.

The US$120mn project involves a 160MW solar park close to state capital Victoria de Durango.

Similar problems are affecting the portfolio of US-based developer Invenergy. Its US$50mn, 19MW Sol de Chihuahua solar park in Chihuahua state was suspended indefinitely due to issues in the permitting process, the company said.

But the issue goes beyond renewables. Invenergy has faced obstacles with its US$850mn Tajín Energía unit in Veracruz state, a two-train, 1.1GW combined cycle plant meant to draw supply from the Sur de Texas-Tuxpan marine pipeline.

And its US$50mn San Pablo cogeneration plant in Mexico City has failed to secure approval for its environmental impact statement from the environment ministry.

Power generation projects in all stages of development are facing permitting hurdles in Mexico, from failing to secure environmental licenses – or the processes dragging on for years ­– to being denied generation and interconnection permits.

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London-based investment firm Actis said it will purchase the Mexican portfolio of Energía del Valle de México (EVM) through its local subsidiary Valia Energía.

EVM owns two natural gas-powered plants in Mexico state totaling capacity of 950MW. The first, EVM I, is a 100MW gas turbine facility. The second, EVM II, is an 850MW combined cycle plant that came online in 2021.

After the purchase, Valia Energía will have a 3.1GW generation portfolio, as well as a pipeline in the northeast of Mexico, the company said.