VW signs 130MW PPA in Mexico

MEXICO: Volkswagen Mexico has signed a 20-year power purchase agreement (PPA) for 130MW from Mexico Power Group.

The PPA covers the 180MW La Bufa wind farm, which is being developed in Zacatecas, northern Mexico, and is expected to be completed next year.

Power generated by the project will be used by VW's Puebla vehicle manufacturing plant and its Silao engine plant.

Volkswagen has a history of investing in renewables. In 2011, the German car manufacturer said it wanted to invest EUR 1 billion in renewable-energy projects over the next two years.

Mexico's wind market, with some of the strongest winds in the world, has fast ramped up, adding around 600-700MW of new annual capacity last year.

This rate is predicted to last until 2015 and probably beyond, according to national wind association Amdee and the Global Wind Energy Council.

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