Northland Power completes Mexican solar sale to Saavi, exits local market

Canada’s Northland Power has completed the Cdn$205mn (US$149mn) sale of its 100% stake in the 130MW La Lucha solar facility in Mexico and finalized its exit from the country’s power market.

In a Q1 earnings conference call in May, interim CFO Adam Beaumont said Northland was looking for opportunities to redeploy capital in more promising markets.

"La Lucha is the first example of that, as we focus in on markets that we see better prospects moving forward with than others, and pull back from markets where we've seen more headwind," he said.

Northland sold the asset to local company Cometa Energía.

Under the administration of outgoing President Andres Manuel López Obrador, Mexico has slowed down the awarding of permits to renewable energy developers and obstructed the ability of private companies to operate renewable energy facilities and connect them to the grid. 

La Lucha, in Durango state, began commercial operations in June 2023.

Cometa is a subsidiary of Saavi Energía, which is the fourth biggest independent power producer and the largest privately held stand-alone generator in Mexico.

La Lucha will be Saavi's first operational solar facility. 

According to Saavi's website, its current portfolio includes six combined cycle gas turbine power plants as well as compression stations and associated natural gas pipelines. 

Since 2021, Saavi has been owned by private equity powerhouse Global Infrastructure Partners.