VW signs 130MW PPA in Mexico

MEXICO: Volkswagen (VW) has announced that its two automobile plants in Mexico will source most of their power demand to the 180MW La Bufa wind plant expected to come online by end-2014.

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The project, developed by Mexico Power Group (MPG), is located in the central state of Zacatecas. MPG has confirmed it will use 2MW turbines, though no turbine contract has been announced.

Speaking at a Mexican business congress, VW Mexico's corporate relations boss, Thomas Karig Gerecht, confirmed an existing 20-year power purchase agreement with MPG signed in September last year.

The deal commits VW to buying power from turbines making up 130MW of the project.

That power will amount to around 60% of combined demand from the two manufacturing plants, located in the cities of Puebla and Silao, around 600 kilometres and 220 kilometres to the south of La Bufa.

VW Mexico is studying ramping up to sourcing 100% of power consumption to clean sources, said Karig.

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