SIIF, Deproe to start construction of US$80mn wind project

Mexican engineering company Deproe and French partner SIIF Energies aim to start construction by year-end on an US$80mn wind power project in Oaxaca state, Deproe projects director Ricardo Whaley told BNamericas. SIIF and Deproe hold respective 75% and 25% shares in the joint venture. Mexico's state power company CFE and energy regulator CRE have approved the project, which entails providing 290GWh per year for four Mexico state municipalities that consume 262GWh annually, Whaley said. The project will sell power surpluses to CFE. The project has an ultimate capacity of 180MW, but will start with 67.5MW. The balance would be installed as more municipalities come on board as offtakers. The first phase will have 75 900kW turbines at a height of 49m. The project's capacity factor is 49%, with wind speeds averaging 11 meters a second. Deproe and Siif are finalizing long-term supply contracts, likely to last 10-25 years, with the municipalities, which will participate in the project under a self-supply scheme. State public works bank Banobras and France's CreditAgricole Indosuez will finance 31% and 39% of the project respectively, with project capital financing the balance. Construction is expected to take 10-12 months, and includes 9km of transmission line.