Cubico Sustainable Investments, which is owned by the Public Sector Pension Investment Board and the Ontario Teachers’ Pension Plan, has been awarded power purchase agreements for a wind project and a solar project in Mexico that represent a total investment of around US$700 million.
The Canadian pension funds, along with Banco Santander, launched the renewable energy and water infrastructure company in May 2015. The pension funds bought out the bank’s interest in July.
Read: Ontario Teachers’, PSP increase stakes in sustainable investment firm
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. They will be operational between 2018 and 2019.
“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,” said Osvaldo Rance, head of Mexico at Cubico.
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.