Danish wind turbines manufacturer Vestas announced that Ener AB, a joint venture between Virginia-based AES Corporation and Mexico’s Grupo BAL, has placed a 306 MW order for the Mesa la Paz wind park that derives from a corporate power purchase agreement (PPA).
The order includes the supply and installation of 85 V136-3.45 MW turbines, delivered in 3.6 MW Power Optimized Mode, as well as a 15-year Active Output Management 5000 (AOM 5000) service agreement for the operation and maintenance of the wind park located Southeast of Ciudad Victoria, Tamaulipas.
Although Vestas did not detail the place where the turbine manufacturing will take place, it is very likely that they will be produced in the new plant of its partner, Arizona-based TPI Composites, which is about to start operations in the same state of Tamaulipas.
Like most energy markets across the globe, Mexico is transitioning towards large-scale tenders and auctions, but corporate power purchase agreements (PPA) continue to originate large-scale projects outside of the auction systems. Underscoring this development, Bloomberg New Energy Finance estimates that corporate PPAs in Mexico totalled 5.4 GW in 2017 with the number expected to grow in 2018.
By the end of 2017, Vestas had installed more than 4 GW in Latin America and announced plans to establish production facilities in Mexico together with its partners that will serve 4 MW platform blades to all of Latin America.
With its latest contract, Vestas’ order intake in Mexico has reached more than 2.1 GW, including the Reynosa III wind park, which will be Mexico’s largest.
Turbine delivery and commissioning are expected during 2019. The financial terms of the deal were not disclosed.