AES Corp. to invest $1 billion in electricity production

An AES plant in California.

 

 

 

 

Mexico News Daily

Saturday, August 2, 2014

 

One of the world’s largest private power companies will invest at least US $1 billion in Mexico, and double its existing capacity for electrical generation. United States-based AES Corporation also plans to enter the wholesale power market, an opportunity created by the new energy laws.

The company currently operates three power plants in Mexico and its plan is to double that capacity with plants powered by natural gas. Its new investment will be carried out over the next three to five years.

The head of AES in Mexico said that entering the wholesale power market is one of its main targets. Juan Ignacio Rubiolo said they are monitoring the creation of the new independent electric system operator and waiting to access technical data and transparency rules.

A key concern is access to natural gas.

“We would like to be more comfortable with how they’re going to allow private investors to get access to gas and pipeline capacity,” Rubiolo said.

AES has power generation and distribution operations in 20 countries. Its revenues last year were $15.9 billion.

Source: Reuters (eng)

AES plans $1 billion investment in Mexican power generation

BY DAVID ALIRE GARCIA

reuters.com

MEXICO CITY Fri Aug 1, 2014

(Reuters) - U.S.-based power company AES Corp plans to invest at least $1 billion to double its existing electricity generation capacity in Mexico, and also intends to enter the country's new wholesale power market.

Juan Ignacio Rubiolo, head of AES's Mexican unit, said in an interview on the sidelines of a trade mission this week that the company expects to benefit from sweeping energy reform and grow beyond its three existing power plants, which generate a combined 1,050 megawatts.

"We have a target of doubling the capacity we have in Mexico," said Rubiolo, noting that the company's focus is on plants powered by natural gas.

He said the company expects to invest at least $1 billion over the next three to five years to achieve the target.

AES (AES.N) is active in power generation and distribution in 20 countries and had revenue of $15.9 billion last year.

Rubiolo, previously AES's top executive in Panama, said the company is also looking to enter a newly created wholesale power market in Mexico.

"That's one of the major changes of the reform," said Rubiolo. "It's definitely one of our main targets."

The country's Congress is putting the finishing touches on an energy overhaul that ends the wholesale monopoly held for decades by national power company CFE [COMFEL.UL].

Final approval of so-called secondary laws that are needed to flesh out the fine print of last year's energy reform is expected in August.

Rubiolo said the company is closely following the creation of a new independent system operator and that body's independence from the CFE, as well as access to technical data and transparency rules.

He emphasized that the post-reform pace of growth in new power generation will depend largely on access to natural gas.

"We would like to be more comfortable with how they're going to allow private investors to get access to gas and pipeline capacity," he said.

(Reporting by David Alire Garcia)