Spanish electric utility Iberdrola has won a $400m contract to build the 850MW Noreste combined cycle power plant in Escobedo municipality, Nuevo León state. The Mexican Government has awarded the contract to Iberdrola to construct, own, operate and maintain the power plant which can generate electricity required to power 2 million Mexican consumers.
The Mexican Federal Electricity Commission (CFE) will purchase the power generated from the facility under 25-year power purchase agreement with fixed capacity charges. Construction work on the Noreste power plant is scheduled to begin early 2016, and is expected to be completed in July 2018.
Iberdrola is likely to develop infrastructure including the power lines and the transformer substation, required for connecting the power plant to the national electricity system. Mitsubishi Hitachi Power Systems (MHPS) will provide gas turbines and a steam turbine for the Noreste station, which will also feature Foster Wheeler-built boilers.
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