Actis has agreed to commit $250 million to set up a Mexican energy platform that will target over 500 megawatts (MW) of installed capacity in the country, according to a statement.
The platform, Zuma Energía, is Actis’ fourth power generation platform in Latin America, following recent investments in Brazil, Chile and Central America, it said.
Zuma will rely on Actis' expertise in the power sector, especially in project finance, construction and operations to build a leading independent power producer (IPP) in Mexico, it added.
Zuma has already completed its first acquisition and closed the financing of PE Ingenio, S.A.P.I. de C.V. (Ingenio), a 50MW wind farm located in the state of Oaxaca.
The project will be constructed by Acciona Energía, which will also supply its 33 wind turbines.
The wind farm will receive debt finance from Bancomext and will have Comexhidro as a local partner with a 5 percent interest.
Once in operation the wind farm is expected to produce enough clean energy to power over 125,000 Mexican households, reducing CO2 emissions from conventional generation by over 200,000 tons, according to the statement.
“Supported by the recent reform agenda in the energy sector, Mexico has compelling fundamentals for investing in power generation, including superior natural resources, an evolving and supportive regulatory framework and a deep project finance capacity. Drawing on our deep understanding of the Latin American energy sector we are looking forward to building one of Mexico’s leading suppliers of competitive power,” said Michael Till, co-head of energy at Actis.
“Actis’s interest in partnering with us strengthens our business in Mexico, a country where we already have significant presence, and in which we continue to develop new projects. We are delighted to be working with such a credible, highly experienced partner as Actis,” Rafael Mateo, CEO of Acciona Energía said.
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America. It currently has $6.5 billion funds under management.
Since 2002, Actis has deployed over $1.4 billion in 25 energy transactions, across 20 countries, generating over 14,500MW capacity and providing energy access to over 30 million people, according to its website.