On Monday, November 1st, the Federal Electricity Commission (Mexican State-owned electric company) subsidiary Intermediation of Legacy Agreements (“ICL, for its acronym in Spanish”), ordered the disconnection of Iberdrola´s Wind Energy Plant in Guanajuato, for a breach of contract for change of land use.
According to the Official Communication CFE-ICL-0890-2022, which is dated October 31, the company breached a contract it had with federal authorities for the construction of the Santiago Eólico plant.
For the development of the plant, the Energy Regulatory Commission (“CRE”) granted Iberdrola a self-supply electric energy generation permit on April 2015 for a total capacity of 105 MW and an estimated annual production of 275 GWh in San Luis Potosi; however, the plant was built in Guanajuato without any notice of the address modification to the CRE.
This outcome comes after, earlier this year, the CRE denied Iberdrola’s formal request to modify the site established in the permit. This triggered a breach under the Renewable Energy Interconnection Legacy Agreement entered by the Spanish Company and ICL in 2016, based on the argument that Iberdrola´s omitted to disclose that it did not have all required authorizations.
Therefore, The ICL issued a notice to the CRE informing of such contractual breach causing the permanent disconnection of the Wind Energy plant.
The lawyers of the Administrative and Energy areas of our Firm are at your disposal for any questions or comments you may have regarding this matter.
Juan Carlos Serra
Pablo Nosti Herrera
Pablo Chevez Gallegos
Fernando Osante Kretchmar