Alstom to bid for geothermal projects in Mexico

Mexico City Cathedral, Mexico (source: flickr/ Francisco Diez, creative commons)
Francisco Rojas 27 Aug 2014

The French firm Alstom is interested in participating in projects that were recently released by the Federal Electricity Commission (CFE) as part of the energy reform, but sees risks in payment periods established in the contracts.

Following the recent reform in the energy law in Mexico, allowing private companies to partake in the sell of energy, Alstom has announced that is very interested in expanding its influence in the country.

“We are interested in energy reform, but we are concerned about the terms of contracts CFE, the payment is at the end of the project … we must be very careful with cash flows,” said Michael Augonnet, Vice President, Business Solutions Alstom in conference with analysts from France.

However, he said he will remain alert to opportunities that arise to energy reform.

Between last July and August, the CFE began the bidding process of 21 electrical infrastructure projects and transportation of natural gas for a total investment of 7.7 billion USD .

Alstom has supplied nearly 20 percent of technology for generating electricity in Mexico. The firm operates a hub in Morelia, Michoacán, where turbine components (diaphragms, rotors, blades and shirts) for thermal, nuclear and geothermal power plants are produced.

Last April, Alstom signed a contract for 90 million euros (about 125 million USD) for the conversion of two units of 158 MW thermal power plant in Altamira, Tamaulipas.

Transmission division of Alstom, called Grid, presented its latest innovations at the Council on Large Electric Systems (CIGRE, by its initials in French), the biennial global forum for power industry, held in Paris, France.

Source: El Financiero via Piensa en Geotermia