Cubico Sustainable Investments (Cubico), a global leader in renewable energy, has been awarded power purchase agreements (PPAs) in Mexico’s 2nd long-term electricity auction for the 250 MW Mezquite wind project and the 290 MW Solem solar PV project, representing a total investment of around US$ 700 million.

Ricardo Díaz, Head of Americas at Cubico, said: “This is a very important milestone that positions Cubico among the top players in the renewable energy sector in Mexico.”

Cubico will raise financing for US$ 500 million and will invest, along with its minority partners, US$ 200 million in equity to start the construction of these projects early next year and have them operational between 2018 and 2019.

Osvaldo Rance, Head of Mexico at Cubico, added: “This is the beginning of a new era for Cubico in Mexico that sets solid foundations to move forward with our growth plan and long-term investment strategy in the country.”

The 250 MW Mezquite wind project is located in the state of Nuevo Leon in the Northeast of Mexico and forms part of an 800 MW portfolio of wind projects under development acquired by Cubico from Banco Santander in 2015.

The 290 MW Solem solar PV project is located in the state of Aguascalientes in Central Mexico and is owned by Cubico and its partner Alten Energias Renovables, an Independent Power Producer focused on PV technology in Southern Europe, Africa and Latin America.

Nacho Ruiz, Head of Investments & Strategy for the Americas at Cubico, said: “This project in Aguascalientes is Cubico´s first solar investment in the Americas and the most sizable PV asset in our portfolio, which allows us to diversify between wind and solar technologies.”