Mexico
News

Blockade continues at Oaxaca wind farm

Bnamericas
Blockade continues at Oaxaca wind farm

A blockade of the Cinco Palmas wind farm (pictured) in Mexico's Oaxaca state by local residents protesting a lack of payment by French developer EDF has entered its second month, according to media reports.

Each of the 214 local landowners who leased land to EDF are demanding a payment of 30,000 pesos (US$1,589) as an annual bonus, in addition to a review of the contract signed in 2008 between the landowners and the French company's affiliate Eoliatec del Pacífico.

Around 20 protesters have been camped out at the entrance to the wind farm since February 24 and are impeding worker access to the facility. As a result, 30 of the 160MW farm's 80 turbines are out of action, according to newspaper El Universal.

This is not the first time the wind farm has suffered blockades by local people, with similar incidents in 2013 and 2015, according to local media. On the first occasion, inhabitants of nearby Santo Domingo Ingenio demanded that the developer hire local people for the facility's construction, with the local government acting as a mediator.

In 2015, protesters blocked access to the wind farm demanding an explanation from the developer regarding its decision to sell a 50% share in the facility to Eólica de Francia and Mitsubishi, despite pledges that the company would not sell a stake. Landowners expressed their concern that a change of ownership would affect the contract signed with the developer for the lease of their land for the project.

Oaxaca's Tehuantepec isthmus is the country's wind epicenter, with 2.3GW of Mexico's total 3.5GW wind capacity, according to the national windpower association Amdee.

However, the development of farms in the region has met with opposition.

ALSO READ: Mexico plans more wind farms for Oaxaca amid local opposition

In April 2014, landowners in Juchitán blocked access to the Oaxaca II and Bii Hioxo farms to demand compensation for damage to crops and, at the Oaxaca II plant, protesters complained that construction of a bridge by Spanish developer Acciona had caused the diversion of rainwater, damaging their plantations.

In 2012, locals protested against land expropriation from indigenous landowners during the opening of the Santo Domingo and Piedra Larga wind farms.

In 2015 the government carried out an eight-month consultation process with the indigenous communities of Juchitán and El Espinal, resulting in local residents voicing their approval of the 396MW Eólica del Sur farm. However, that project has been stalled since April 2016, when Dutch pension fund PGGM withdrew the 250mn euros (US$280mn) it had set aside to invest in the farm after scientists raised concerns regarding its environmental impact.

In December, multinational investment vehicle Balam Fund was reported to be evaluating a minority investment in the project.

Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Electric Power (Mexico)

Get critical information about thousands of Electric Power projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: Electric Power (Mexico)

Get critical information about thousands of Electric Power companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Grupo Chufani
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: Comisión Federal de Electricidad  (CFE)
  • Mexico's state-owned power utility Comisión Federal de Electricidad (CFE) engages in the generation, transmission and distribution of electric power. It can also engage in the t...
  • Company: CFE Transmisión
  • The description included in this profile was taken directly from an AI source and has not been edited or modified by BNamericas researchers. However, it may have been automatica...