Iberdrola holds a dominant stake in Mexico’s energy landscape, controlling about 80% of its manufacturing-oriented electricity business through its local affiliate network. The Spanish energy group recently signed a large-scale sales contract with a Mexican government-backed entity, Mexico Infrastructure Partners (MIP), valued at roughly 6 billion dollars (about 5.5 billion euros). The arrangement, disclosed to the Mexican National Securities Market Commission (CNMV), centers on a framework where Iberdrola’s installed capacity in the country totals 8,539 MW of sales capacity, while the company’s own operational capacity stands at around 2,427 MW.
The majority of the anticipated sales—approximately 8,436 MW—derive from gas-fired stations, notably includes several combined-cycle plants. About 103 MW of wind capacity is also active within the portfolio. Iberdrola identifies multiple combined-cycle plants operating under the Independent Power Producers regime and contracted with the Federal Electricity Commission (CFE), including Monterrey I and II, Altamira III and IV, Altamira V, Escobedo, La Laguna, Tamazunchale I, Baja California, Topolobampo II and III. The wind footprint highlighted includes La Venta III, along with special gas plants at Monterrey III and IV and Tamazunchale II and Enertek.
Collectively, this implies that Iberdrola Mexico would retain approximately 1,166 MW of combined-cycle power plants, around 202 MW of cogeneration, and roughly 1,059 MW of renewable assets in operation after the deal completes. The strategic move is framed as part of a broader effort to realign generation assets under a unified, government-supported investment program in Mexico.
The transaction occurs in a charged political context. Mexican President Andres Manuel Lopez Obrador accused several Spanish firms operating in the country, Iberdrola among them, of lobbying against his electricity reform proposals. He framed such relationships as preferential treatment and argued they harmed Mexico’s interests, citing interactions involving senior figures from the energy sector and former administrations. European press coverage highlighted his claim that a government minister and former president had been engaged by the contracting party, remarks that fed into a larger debate about how international investors influence national energy policy.
On a public stage, Iberdrola’s leadership, led by Ignacio Sánchez Galán, and Mexican government officials signaled a new phase in bilateral cooperation. They described the agreement as the start of deeper involvement in Mexico’s renewable development agenda, with the company reaffirming its commitment to invest in Mexico’s energy transition, supported by government backing. The company stated that the partnership would strengthen its role as a leading generator of renewable electricity in the country, underpinned by agreed government participation and oversight.
As part of the ongoing collaboration, Iberdrola Mexico plans to continue servicing existing customers and those impacted by ongoing operations. The parties committed to exploring electricity purchase agreements with Mexico Infrastructure Partners, aiming to stabilize supply and address outstanding disputes from prior years. The deal, valued at around 6 billion dollars, remains subject to contract finalization, regulatory approvals, and customary closing conditions. It may be adjusted as the closing date shifts, and it depends on formal agreements by all involved parties. Public financing support for the transaction is expected from Fonadin, the Mexican National Infrastructure Fund, and other government-aligned financial institutions.
This evolving deal showcases how a major European energy company aligns its growth strategy with Mexico’s public policy priorities, aiming to expand renewable capacity while ensuring energy security and investment continuity. Analysts note that the arrangement illustrates a broader pattern of cross-border partnerships in North America’s power sector, where state-backed funds and private investors cooperate to accelerate the deployment of cleaner generation assets while navigating regulatory and political dynamics. The parties involved emphasize a shared commitment to development, resilience, and long-term energy reliability for Mexican consumers and industries. In the end, the agreement highlights how strategic capital infusions and policy alignment can catalyze the transition to a more sustainable electricity mix while maintaining fiscal and operational discipline across a complex market environment.