Valia Energía completes acquisition of EVM Energía (EVM)

  • Valia Energía will add 950 MW to its current asset base of 2.2 GW of power generation through the acquisition of EVM Energía portfolio (EVM).
  • Valia Energía consolidates its position as one of Mexico’s most important independent power generators and one of the top 10 in Latin America in terms of total installed capacity.

 

Mexico City, July 17, 2023 - Valia Energia, a portfolio company of the global sustainable infrastructure investor Actis, dedicated to affordable and reliable power generation in Mexico, announces that it has completed the acquisition of EVM, an energy portfolio that generates electricity from natural gas. This transaction consolidates Valia's platform, with seven natural gas-fired generation plants with a total installed capacity of 3.2 GW located in the states of Tamaulipas, Coahuila and Estado de México, along with an adjacent natural gas pipeline

The integration of EVM addstwo advanced natural gas-powered plantsto Valia's current portfolio, EVM II, a combined cycle plant with an installed capacity of 850 megawatts (MW) equipped with GE’s H-Class advanced turbines, and EVM I, a 100 megawatts (MW) simple cycle plant, equipped with GE’s aeroderivative unit, both located in the State of Mexico. The acquisition includes the purchase of GE Energy Financial Services’ 40% stake in EVM II.

With the incorporation of this modern technology into its fleet, Valia Energia will be among the most responsive and flexible operators in the industry, enabling grid operators to dispatch power quickly and therefore complement intermittent renewable sources. Additionally, GE’s combined cycle technology at EVM II generates among the most economically efficient energy in the country, particularly given its access to low-cost natural gas, and has lower environmental impact, producing 90% fewer emissions than thermoelectric plants powered by diesel and other fossil fuels. With high performance and safety standards, both plants are strategically located in a high consumption area of the National Interconnected System (SIN), making them key in providing reliable power to the country's electricity grid.

Narcís de Carreras, CEO of Valia Energía, said that the move shows the company's commitment to consolidating its position in the country, while also demonstrating its strong interest in promoting an equitable and orderly energy transition in Mexico and remaining a reliable source of energy for industrial development. Valia is also focused on positioning itself as a sector leader by implementing the highest standards of health and safety in its operations, maintaining a strong and collaborative relationship with its employees and stakeholders, and consistently providing valuable contributions to society.

For Valia Energía, the acquisition of the EVM portfolio represents the next step in the company's strategy for the coming years, which will encourage a shared approach to leadership among all industry stakeholders with the ultimate goal of providing affordable, reliable, and sustainable energy solutions to the Mexican electricity system. The acquisition also demonstrates Valia's ability to identify and develop inorganic growth opportunities that contribute to the company's vision of being a sector leader in Mexico.

Michael Harrington, Chairman of the Board of Valia Energía and Partner at Actis, said "This good news strengthens Valia Energía's position stature as a leading power generator, firmly at the heart of Mexico's energy transition. We are committed to delivering reliable energy crucial for fostering growth in the nation's industries, enterprises, and communities. With an eye on a sustainable, cleaner future, we understand and emphasize the continued pivotal role of natural gas in our continuing energy transition journey."

 

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About Valia Energía

Valia Energía is a Mexican energy company that generates electricity for daily consumption in homes, industries, and municipalities. Valia Energía has the goal of positioning itself at the center of Mexico's energy transition, for a cleaner sustainable future, while providing the affordable and reliable energy that the country requires for its prosperity. The name "Valia Energía" reflectsthe fundamental principles of our company: the conviction that our approach creates value, the courage to act, alongside the proven value we bring to our customers and the communities in which we invest.

Valia Energía will operate a total of 3.2 GW in seven electricity generation assets and associated natural gas transportation infrastructure in Mexico.

www.valiaenergia.com

About Actis

Actis is a leading global investor in sustainable infrastructure. Actis has raised $25 billion since its inception and has more than $12 billion in assets under management. A team of more than 130 investment professionals operates from 17 offices across five continents. Actis' global experience, operational know-how, and unique culture enable it to build and manage globalsustainability leaders on a large scale while delivering competitive returns for institutional investors and measurable positive impact for the countries, cities, and communities in which it operates.

Actis' energy infrastructure team invests globally in buying and building power generation businesses, supporting the energy transition and accelerating the path to Net Zero. Actis has invested in more than 23 renewable energy platforms to date, with approximately 30 GW of renewable energy capacity globally, and is targeting 12.5 GW more. Actis is investing its latest Energy 5 fund, which represents US $6 billion of investable capital.

 

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Sara Hayden

Analista Senior
Miranda Partners
+52.55.1487.2062
Sara.hayden@miranda-partners.com

Andrea Marelle Soberanes

Analista
Miranda Partners
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Andrea.marelle@miranda-partners.com