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Salinas Group/ Dragon Group to invest up to $700 m in energy projects in Mexico

Geothermal installation at Los Azufres, Michoacan, Mexico (source: flickr/ Shane_R, creative commons)
Alexander Richter 7 Sep 2015

Through its subsidiary Grupo Dragon, Grupo Salinas plans investments of up to $700 million in renewable energy projects in Mexico, with a focus also on geothermal projects as part of the Mexican energy reform.

As reported locally, Salinas Group has announced it will invest up to 12 billion Mexican pesos ($710 million) into Grupo Dragon, its energy business focused subsidiary over the next four years.

This statement was made by José Pablo Fernandez, CEO of Grupo Dragon, he added that the company has three wind energy projects, one of solar power project and is participating in Round One of the geothermal bidding in Mexico.

Through the energy reform in Mexico, the company sees many opportunities, either using geothermal resources or by the new energy market.

In geothermal, Grupo Dragon builds on its geothermal experience of projects in Nayarit and Jalisco. “By the geothermal side we are actively involved and we hope to give good news to our shareholders in the coming weeks,” said Fernandez. The geothermal project Domo San Pedro obtained permission as part of the energy reform, and the company has so far 3 billion Mexican pesos ($177 million). Should the company be able to obtain additional contracts in the area, then investment decisions will be made.

The company’s plant in San Pedro Lagunillas (Nayarit) was the first to be awarded to a private company and now generates 5 MW, as we reported earlier this year. The plant is expected to double its output shortly and eventually reach 50MW in 2 years.

Dragon Group is in talks with the Federal Electricity Commission to conduct new projects.

Source: El Financiero