Iberdrola agrees to sell remaining Mexico power plants to Spain’s Cox

Spanish utility Iberdrola has agreed to sell its remaining power generation assets in Mexico to Cox, a Spanish renewable and water infrastructure company, marking its full exit from the country's generation market after more than two decades.

The transaction, which had been the subject of speculation, involves 15 plants valued at $4.2 billion, including debt with an installed capacity of 2.6 GW of which 1.3 GW are natural gas-fired combined cycles and cogeneration and 1.2 GW use renewable energy.

The sale aligns with Iberdrola's global strategy to divest from non-core markets and concentrate investment in other jurisdictions. It comes as Mexico undergoes a major legal and energy overhaul under President Claudia Sheinbaum, who is preparing to introduce secondary legislation tied to recent constitutional reforms.

In a statement, Cox said Mexico represents a "priority market" due to its legal certainty and macroeconomic stability. The company outlined a $10.7 billion investment plan through 2030, which includes the acquisition of Iberdrola's Mexican assets, $4 billion in new energy assets, and $1.5 billion in water projects. The plan also envisions co-investment in generation projects with the state utility CFE.

Cox said the acquisition strengthens its position in the Mexican power sector and supports its broader goal of expanding across Latin America.

In 2023, Iberdrola sold a large portion of its Mexican portfolio to a state-backed trust for $6.2 billion after years of political pressure. That transaction was heralded by the government as a step toward boosting CFE's control over power generation and enhancing energy self-sufficiency.

With the latest divestment, Iberdrola has completed its exit from Mexico's generation market. The company is now focused on electricity grids, renewables, and customer solutions. Under its Eur41 billion global investment plan, 60% of spending is earmarked for regulated networks, 28% for renewables, and the rest for digital services. Key investment markets include Spain, the US, the UK, and Brazil.

Iberdrola recently completed a Eur5 billion capital increase to fund expansion in grid infrastructure, citing "unprecedented" investment opportunities worth Eur55 billion between 2026 and 2031.