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.