Cox Energy’s Strategic Move in Mexico
Enrique Riquelme, President and Founder of Cox Energy, sees a mature market with ample demand that makes Mexico attractive to investors.
Acquisition of Iberdrola’s Operations in Mexico
By acquiring Iberdrola’s operations in Mexico, the country is set to become the most significant market for Grupo Cox Energy. The company plans to double its renewable energy generation participation and invest an additional $6,500 million by 2030.
Mexico’s Energy Market Appeal
With a 4% annual growth rate in energy demand, contrasting Europe’s stagnation, Mexico’s attractiveness is evident for Cox Energy and other investors. This was demonstrated in their recent $4,200 million financing round to acquire Iberdrola.
Collaboration with CFE and Investment Opportunities
“Anyone interested in energy investment, like us, can invest independently or collaboratively with CFE (Federal Electricity Commission),” stated Riquelme. “The playing field is level for all participants in a mature market with solid financing and demand.”
Investment Plans for Mexico
- $10,700 million investment by 2030, including $4,200 million for 15 renewable and combined-cycle plants from Iberdrola (completion by early 2026)
- $4,000 million for new generation capacity, primarily renewable with battery backup
- $2,500 million for other opportunities: an industrial pole in Veracruz and hydrological projects like desalination
Key Questions and Answers
- What is the significance of Mexico for Cox Energy? Mexico is one of the most crucial markets for Cox Energy’s development, with secure legal frameworks for investments and a favorable balance for investors.
- How much financing was raised for the Iberdrola acquisition? Cox Energy secured 75% of the financing through international bank credits.
- What is Cox Energy’s current presence and future plans? Cox Energy operates in 37 countries but aims to concentrate on around seven key markets, including Mexico and Chile.
- What is Cox Energy’s client base in Mexico? Cox Energy will add approximately 500 industrial clients currently supplied by Iberdrola in the wholesale market, focusing on bilateral energy contracts for large consumers.
- What is the status of Iberdrola’s energy supply contracts? Few contracts remain for the 2,600 megawatts Cox Energy purchased from Iberdrola, and efforts are underway to migrate them to the current legal framework.
