CDPQ, CKD IM acquire 80% renewable assets of Enel Green Power in Mexico

La Caisse de dépôt et placement du Québec (CDPQ), an institutional investor, and CKD Infraestructura México (CKD IM), a consortium of Mexican institutional investors, have acquired 80% of a portfolio of eight wind and solar assets owned by Enel Green Power (Enel), a renewable energy developer.

After this deal, Enel will own 20% of the portfolio and remain the operator.

This is considered to be a major investment for CDPQ and CKD IM, a group consisting of Mexican pension fund managers (Afores) XXI Banorte, Afore SURA, Banamex and Pensionissste, as well as infrastructure fund Fonadin.

This partnership comes as the Mexican government aims to produce 40% of its power from renewable sources by 2035.

CDPQ executive vice-president for infrastructure Macky Tall said: “This transaction broadens our exposure in renewable energy alongside a leading operator. By creating a platform with key Mexican partners in 2015, we wanted to be positioned to identify the best opportunities in Mexico, a priority market for CDPQ.

“This new investment in high-quality assets is perfectly in line with our strategy, and allows us to strengthen our partnership with local pension funds and other major players in Mexico.”

CKD IM general manager Eduardo Ramos said: “This acquisition marks an important step in the partnership between CKD IM and CDPQ, which will now have a well-diversified investment platform across growing sectors such as renewable energy and transportation.

“Enel is a world-class company with a strong footprint in Mexico, and its expertise in project development, construction and operation makes it a strategic partner for us.”

The five wind and three solar projects in the portfolio are located across six Mexican states. They represent a combined capacity of 1,712MW, of which 429MW is operational and 1,283MW are under construction.