China buys 600MW Mexican wind power project

Chinese wind energy group Envision Energy has purchased a controlling stake in a 600 megawatt wind energy project in Mexico, and the deal is China’s biggest foreign investment in the wind power sector.

The move marks the Chinese company’s entry into a market largely dominated by Spanish wind energy company, Gamesa, who currently control a 73 per cent share of the Mexican wind energy market.

Rafael Valdez Mingramm, Envision's director for Latin America and the Caribbean, said: “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.”

In a statement, Envision said: "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.”

The Mexican government has set a target to source 5 per cent of the country’s total electricity from renewable energy technologies by 2018, and 24 per cent by 2024.

Construction for the project is expected to start in 2016, with operations scheduled to begin by the end of the year.