Mexican energy infrastructure firm IEnova and steel manufacturer Deacero had signed a 20-year deal to supply the latter with renewable energy from a solar power plant in Caborca, a municipality located in the Northern state of Sonora.

IEnova unit ESJ Renovable II will invest US$ 115 million at the 110 Megawatt plant, which is expected to start operations in the fourth quarter of 2018, IEnova said in a statement.

The company will be responsible for the construction, financing, operation, and maintenance of the solar plant, which will allocate 100% of its capacity to Deacero.

IEnova, or Infraestructura Energetica Nova SAB de CV, is a unit of U.S.-based Sempra Energy. 

This is the first contract for the direct sale and purchase of energy between a private generator and an end user since Mexican government approved an Energy Reform in 2013.

“The project will generate approximately 500 jobs during construction,” said the company in its statement.

MexicoNow

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