Generating new capacity
Mexico, Latin America’s second largest country, has been experiencing something of a manufacturing boom. It already exports more products to the world than the rest of Latin America combined, and its economy is picking up momentum from the move to ‘reshore’ manufacturing from Asia.
Of course, all this activity – as well as the aspirations of the country’s thirty million, increasingly wealthy households – needs more power than Mexico’s electricity sector has been able to produce and supply. The government has therefore set about reforming the electricity sector in a bold move to secure more energy.
Given its ample, natural wind and solar resources, Mexico can afford to draw upon renewables as part of its energy mix, balancing its reliance on fossil fuels. Actis, which has already delivered effective, renewable energy projects elsewhere in Latin America, chose to partner with Mesomerica Investments when it established Zuma Energía in September 2014, with Actis investing US$245 million for a 70% stake.
Zuma Energía, an energy generation development platform, will acquire and develop projects across Mexico, aiming to provide a total of over 500 MW of newly installed energy capacity. This will help generate the power that the country needs and keep Mexico on ‘fast forward’.