One of Mexico’s main private sector electric power companies is significantly reducing its footprint in the country. Meanwhile, Mexico state utility Comisión Federal de Electricidad (CFE) has snatched another chunk of the nation’s natural gas-heavy generation pie.


On Tuesday, Mexico’s government said CFE was purchasing 12 natural gas combined-cycle plants and one 100 GW wind farm from Spanish firm Iberdrola SA. The total cost was $6 billion and included a total of 8.5 GW of capacity, Mexico’s finance ministry said in a statement.

“We are doing this operation, this purchase, to make CFE stronger, and in this way offer electric power at just prices,” Mexico President Andrés Manuel López Obrador said during his morning press conference. The previous day, he had...