Investment firm First Reserve partnered with Mexico Power Group to build the 130 MW La Bufa wind farm in Zacatecas, Mexico.
Upon completion, La Bufa will sell its generated power under a contracted off take agreement to Volkswagen de México, helping the company meet its targeted renewable energy standards.
The Volkswagen plant in Puebla is the largest automobile factory in Mexico and also one of the largest vehicle plants in the Volkswagen Group. Volkswagen also operates an engine plant in Silao, Guanajuato. Mexico is the seventh largest passenger vehicle manufacturer in the world.
The project represents the third wind farm First Reserve has partnered on in Mexico and is expected to bring the firm's total generated wind power in Mexico to over 600 MW once in operation.
MPG will construct the facility in partnership with Cannon Power Group and Gamesa, a global wind technology leader, who is supplying the turbines. Sumitomo Mitsui Banking Corp., Korean Development Bank, Nacional Financiera and Bancomext are providing financing.
Construction on the project has already commenced with completion currently targeted for early 2017.