Sowitec selling 570 MW of Mexican solar, says market may perk up in 2024

German renewable energy developer Sowitec said on Monday that it has signed agreements to sell three solar power projects with a combined capacity of 570 MW in Mexico.

The buyer is a “major international utility”, the group said, keeping financial and other details about the sale under wraps.

The projects are part of a 1,000-MW portfolio for development and Sowitec set up a joint venture in 2022 to pursue this opportunity.

At present, the three projects are at an advanced stage of development with land and all environmental permits in place. Commissioning is expected to start in 2025, Sowitec said.

“We are pleased that Mexico is again developing positively as a large and important market for SOWITEC,” commented Sowitec CEO Frank Hummel.

“It has proven absolutely right to hold on to the long-term intact market potential despite the difficult environment since 2018 and to consistently continue our activities there. We are also benefiting in particular from our long-standing contacts, which we have maintained intensively since we entered the market in 2008,” added Hummel.

Mexico’s renewables market slowed down since 2018 when the government of president Andres Manuel Lopez Obrador took the reins and tilted the playing field in favour of state-owned utility CFE to the detriment of privately-owned wind and solar.

According to Sowitec, “it is expected that by the next presidential election in 2024 at the latest, the private sector can and will once again become more involved in the expansion of renewable energies. Many large investors are already preparing for this by selectively building a substantial pipeline of wind and solar projects.”

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