Spain’s Iberdrola eyes Latin America PPAs
VALENCIA, February 25, 2016 – Spanish utility company Iberdrola announced EUR 24 billion in investments in power projects in Latin America in its 2020 investment plan on Wednesday.
Concentrating its efforts on transport and distribution networks and renewables generation, Iberdrola’s investment plan includes the commissioning of combined-cycle gas turbine and cogeneration plants in Mexico with a combined power generation capacity of more than 1.6 GW. Capitalising on the liberalisation of the Mexican energy industry, the utility company hopes to secure long-term power purchase agreements for its projects.
Iberdrola is installing 180 MW of renewable power generation capacity in Brazil, where it will also strive to carry out work backed by power purchase agreements.
Over the next four years, the company expects the share of earnings before interest, taxes, depreciation and amortisation from contracted activities will grow from 75% to 81%. Wednesday’s report also revealed full-year 2015 profits of more than EUR 2.42 billion, up EUR 95 million from 2014.
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