Cannon Power Group to invest $2.5bn in Mexican wind energy

The Cannon Power Group has created a new subsidiary in order to support the increased activity in Mexico. Company chairman Gerry Monkhouse will operate the newly-formed Mexico Power Group.

Mexican President Filipe Caulderon has set a target of producing 2GW of electricity through wind energy by the end of his term next year.

It currently produces around 500 MW from wind power. Danish power producer Vestas was contracted to supply a 28.8MW order for wind turbines in Mexico last month. Not just consigned to wind energy projects, Spanish company Abengoa will develop a concentrated solar thermal-gas plant in Aqua Prieta, close to the US border.

Due to the substantially increased volume of activity of its Mexico projects, Cannon Power Group, a global leader in renewable energy development, has decided to reorganize its growth in Mexico.

As a result, Cannon Power Group has agreed to spin off a portion of its Mexico project rights in the states of Baja and Zacatecas to Cannon Power Group’s chairman, Gerry Monkhouse. Monkhouse will continue developing these projects, as well as projects in other locations in Mexico, under a newly formed and separate Mexico-based company, Mexico Power Group, which plans to sell power to Mexican off-takers.

Cannon Power Group will reserve the right to develop a portion of the Aubanel Wind Project located in Baja, California, and will concentrate on cross-border opportunities to sell power into the California/U.S. market from the project to be built on the property.

While operating Mexico Power Group, Monkhouse will remain as Chairman of Cannon Power Group to provide leadership, insight and support for projects the company is pursuing in the U.S. and Europe.

www.cannonpowergroup.com/