The company did not give more details about the upcoming projects and said that it will wait to find out about the new regulations and opportunities that are triggered in the market with the “best relationship” that it now has with the obradorista administration in order to define its portfolio. “Mexico remains a main market, with a mixed greener generation and focused on private clients”, says the presentation. The projects could be detonated with a view to 2030 and taking as a premise the detonation of the nearshoring –as the relocation of supply chains is known– which is already making progress in the north of the country.
The new strategy in Mexico
Mexico remains in focus, but Iberdrola says that now its priority will be to maintain and trigger investments in countries with an A credit rating, a strategy where the country has no place. In previous announcements, Iberdrola had commented that it would seek to increase its participation in the United States and Europe, where it had more legal uncertainty. At the beginning of the six-year term, he wanted to make Mexico his main point of electricity generation, above Spain.
Now he has declared that it will be specifically in the United States where he will focus to grow more rapidly: “This agreement fits perfectly with our strategy, basically through this agreement we have an opportunity to recycle capital towards the growth of new opportunities in the United States and Europe, and increase our exposure in geographies with an A rating”, said Sáinz in the call in which Investors said they were surprised by the friendly tone used by President López Obrador when presenting the agreement in a video posted on social networks. “We think that the United States is the country that offers the most opportunities in the medium and long term.”
With the operation, Iberdrola has disposed of three active protagonists of litigation with the Mexican government in international courts and local courts. With this, the Spanish company has gotten rid of a series of legal processes that had reduced its operations. The Spanish company and the CFE have not given details about the future of these lawsuits, but Iberdrola’s CFE has given a clue to its investors: “We can say that we are almost free of any problem with the Mexican government.”