“Northland Power closes Mexican solar sale deal, reports BNamericas.”

By Oliver Townsend Jul 1, 2024
BNamericas - Northland Power completes Mexican solar sale....jpegOrginal image from: https://www.bnamericas.com/en/news/northland-power-completes-mexican-solar-sale-to-saavi-exits-local-market

Northland Power, a Canadian company, recently completed the sale of its 100% stake in the La Lucha solar facility in Mexico. This sale, valued at Cdn$205mn (US$149mn), marks Northland’s exit from the Mexican power market. The decision to sell the asset was driven by Northland’s strategic shift towards more promising markets. The solar facility was sold to Cometa Energía, a local company.

Northland Power’s Strategic Move

In a Q1 earnings conference call, Northland’s interim CFO, Adam Beaumont, emphasized the company’s focus on markets with better prospects for growth. The sale of La Lucha reflects Northland’s commitment to reallocating capital to maximize returns. By exiting the Mexican market, Northland aims to streamline its operations and invest in markets with more favorable conditions.

Challenges in the Mexican Power Market

Under the administration of President Andres Manuel López Obrador, Mexico has faced challenges in the renewable energy sector. Delays in permit approvals and restrictions on private companies have hindered the growth of renewable energy projects. Despite these obstacles, La Lucha successfully began commercial operations in June 2023.

Saavi Energía’s Expansion

Cometa Energía, the buyer of La Lucha, is a subsidiary of Saavi Energía, one of Mexico’s leading independent power producers. Saavi Energía, backed by Global Infrastructure Partners, is known for its diversified portfolio, including gas turbine power plants and natural gas infrastructure. The acquisition of La Lucha marks Saavi’s entry into the solar energy sector.

Future Prospects for Saavi Energía

With the addition of La Lucha to its portfolio, Saavi Energía is poised to strengthen its position in Mexico’s energy market. The company’s strategic expansion into solar energy aligns with the global shift towards renewable sources. Saavi Energía’s commitment to sustainability and innovation sets the stage for continued growth and success in the evolving energy landscape.

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