Iberdrola’s Sale of Mexico Assets Could Mean Less Competitive Energy Market – Column

Editor’s Note: NGI’s Mexico Gas Price Index, a leader tracking Mexico natural gas market reform, is offering the following column by Eduardo Prud’homme as part of a regular series on understanding this process.

In early April, Iberdrola México said it was selling 8,539 MW of its assets to Mexico Infrastructure Partners (MIP). Most of the capacity is in the form of combined-cycle plants that operate under the independent power production scheme, along with some wind generation and private combined-cycles that participate in the Mexican wholesale electricity market.

In 2021, the total installed capacity in the country was around 90,000 MW, so the size of the transaction is important. The amount agreed for the transfer of assets, $6 billion, would make it one of the largest...