China’s largest direct investment in Mexico has come in the wind energy sector, as a wind turbine manufacturer has acquired controlling stake in a large-scale wind energy portfolio.
Envision Energy, a manufacturer of low speed wind energy turbines, has acquired a majority stake in a portfolio of wind energy projects with total capacity of 600 MW. The construction of the projects is yet to start — expected for 2016, with operations scheduled to begin by the end of next year — with the right to develop owned by ViveEnergia.
Envision Energy and ViveEnergia have also announced a strategic partnership to develop 1.5 GW wind energy capacity by 2020.
The acquisition marks Envision Energy’s entry into a market dominated by Spanish wind energy company, Gamesa. According to a report by BT Consult, Gamesa, an original equipment manufacturer, commands a 73% share in the Mexican wind energy market.
While the financial terms of the deal have not been disclosed, it signifies how attractive the Mexican renewable energy market has become over the last few years. The government has set a target to source 5% of the country’s total electricity from renewable energy technologies by 2018, and 24% by by 2024.
A recent report by the International Renewable Energy Agency (IRENA) and the Mexican Energy Secretariat (SENER) also found that the share of renewable energy in Mexico’s total energy mix can be increased to 21% by 2030, while the share in electricity generated can be increased to 46% by 2030.
The report, however, also notes that the government will have to make significant changes to the policies in order to tap the full potential of its renewable energy resources. If no changes are made to the current policies, the share of renewable energy in the total energy mix would be restricted to just 10% by 2030.
Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.