MEXICO CITY, Oct. 19 (UPI) -- China's Envision Energy announced the acquisition of a majority stake in the wind energy projects of Mexico's ViveEnergia.
Low-speed wind and turbine manufacturer Envision Energy, based in Shanghai, sees itself as a competitor to the Spanish company Gamesa, which dominates Mexico's wind energy market with a 73 percent share.
Envision Energy's deal brings it a majority stake in a portfolio of projects not yet started but designed to have a capacity of 600 MW, as well as a strategic partnership with ViveEnergia to develop 1.5 GW of wind energy capacity by 2020.
The acquisition includes a plan to bring the planned projects to a ready-to-build stage by the end of 2015, the companies reported. Terms of the agreement were not disclosed.
The Mexican government expects 5 percent of the country's electricity needs to come from renewable energy technology by 2018, and 24 percent by 2024. A recent report suggests Mexico's capacity could be higher by the target dates; in 2013 it passed legislation ending a longstanding monopoly on electricity, opening up a market.
"Mexico is one of the most promising markets in the Americas for wind-power generation in the coming decade, not only a result of the energy reform but also given its untapped wind resources, viable projects and off-takers, as well as the interest of equity sponsors and lenders," Felix Zhang, Envision energy's executive director, noted in a statement announcing the acquisition.