Renewables outfit puts Mexico portfolio up for sale

22 March 2019 - 12:00 am UTC

Canadian Solar has launched a process to sell or find a strategic partner for a three-asset, 368MW (dc) contracted solar portfolio in Mexico.

Marathon Capital is advising, according to a sale teaser seen by Inframation‘s sister publication SparkSpread.

Officials at Canadian Solar and Marathon Capital declined comment or could not immediately be reached.

The Canadian Solar portfolio is contracted via 15-year power purchase agreements that are guaranteed by CENACE (Centro Nacional de Control de Energia), a state-owned agency established by the Mexican government.

The projects are: El Mayo (124MW) and Tastiota (125MW) in Sonora; and Horus (119MW) in Zacatecas.

Horus is expected to enter commercial operation in June 2020; Tastiota in October 2020; and El Mayo in June 2021.

In addition, Canadian Solar is looking for an investor for a pipeline of uncontracted projects in Mexico, comprising 103 MW of advanced projects in Zacatecas and 233 MW of mid-stage projects in Durango.

The auction is generating “robust” interest, according to an industry source, who notes there is a shortage of contracted renewable assets for sale in Mexico.

This comes after Mexico’s government recently cancelled a proposed auction of long-term renewable energy contracts.

The decision, which impacts future projects, is not expected to result in the abrogation of existing offtake contracts, the source notes.

 

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