Envision acquires 600MW in Mexico

MEXICO: Chinese firm Envision Energy has bought a controlling stake in a 600MW development portfolio of wind projects in Mexico, with a view to start building this year.

Envision acquires majority stake in a 600MW portfolio

The portfolio was being developed by local renewables developer ViveEnergia. Envision and ViveEnergia have signed a "strategic alliance" to continue developing the sites.

The partnership now aims to bring the first project online by the end of 2016.

"This investment is considered China's largest direct investment in Mexico in the renewable energy space and will take advantage of bilateral cooperation agreements and lines of credit that are in place," said Rafael Valdez Mingramm, Envision's director for Latin America and the Caribbean

Overall, the partnership is targeting 1.5GW on wind projects to be completed by 2020.

"Mexico is one of the most promising markets in the Americas for wind power generation in the coming decade, not only a result of the energy reform but also given its untapped wind resources, viable projects and off-takers, as well as the interest of equity sponsors and lenders," said Envision executive director Felix Zhang.

In August 2014, Envision signed a memorandum of understanding with Mexican bank Banco Interacciones to develop wind projects.

The Mexican government is looking to source 35% of the country's electricity from renewable sources by 2024. Its energy department is targeting 12GW by the end of 2020, which requires around 1.5GW of new capacity annually over the period.

According to Windpower Intelligence, the research and data division of Windpower Monthly, Mexico has brought 593MW of new wind capacity online so far in 2015.

The enterprising Chinese firm is trying to expand beyond its domestic market, where it held an 8.4% share in 2014.

In July 2015, Envision acquired a 25MW project in Sweden. It will install its 2.3MW and 3MW turbines at the site to "demonstrate its technological ability".