DEG and SoWiTec promote wind power in Mexico

To further develop Mexico's wind energy sector, DEG provides the consortium consisting of the German SoWiTec group and Banco Santander with four quasi-equity loans to the total amount of 8.75 million US-dollars. The experienced project developer employs the money to plan and to develop four wind parks in the north of Mexico. DEG has been supporting the project since its development phase, thereby making an important contribution towards realisation of the wind parks. DEG furthermore would act as financing partner once the planning will be completed.

The four wind parks are to extend Mexico's capacity for power generation from renewable energy sources by a total of 740 megawatts, thus reducing CO2 emissions by 1.6 million tonnes each year. Mexico might benefit from the standards of European project development in the wind sector that the cooperation brings with it. Apart from technology transfer and capacity building, these benefits include areas such as management, business organisation, distribution and financing.

DEG mainly acts as an investor in this project, but on top of that it offers its country know-how and contacts on-site. By providing these loans, DEG takes a further step towards enhancing its cooperation with SoWiTec, having in mind that this financing project in Mexico is already the second cooperation between the two enterprises. In June 2011, DEG provided SoWiTec with a quasi-equity loan to the total amount of 6 million euros for the development of wind projects in Argentina, Brazil, Chile, Mexico, Peru and Uruguay.

“As a development finance institution, projects in the field of renewable energies are particularly close to our heart. The cooperation with the experienced German project developer SoWiTec is going to intensify the development of wind power as renewable energy source in Mexico, including a significant German participation,“ said Dr Michael Bornmann, member of DEG’s Management Board. Frank Hummel, Director of SoWiTec, emphasised: “We look forward to further expanding our cooperation with DEG. DEG’s strong presence on-site and its numerous important contacts will help SoWiTec to further strengthen its position as leading project developer in Latin America.”