Revolve Accelerates Development of 531 MW Wind Projects in Mexico Amid Regulatory Reforms

Reading Time: 3 minutes

Revolve Renewable Power Corp., a North American renewable energy owner, operator, and developer, announced it is accelerating development work on two of its utility-scale wind projects in Mexico due to enhanced regulatory clarity. These advanced-stage projects have a combined expected capacity of 531 megawatts (MW) and are progressing more rapidly following the introduction of updated electricity generation regulations in the country.

Revolve’s COO, Omar Bojorquez, noted that recent legislative reforms in Mexico’s energy sector have created a more stable environment for renewable energy and distributed generation initiatives. He emphasized that the company’s proven track record in both utility-scale wind and distributed generation projects positions it strongly to move forward with the two major wind developments and grow its distributed generation operations.

The company currently has two late-stage utility-scale wind projects underway in Mexico.

For both projects:

• Wind assessment campaigns and detailed energy yield assessments have been completed. The Company is in the process of optimizing the project designs based on new turbine models.
• The interconnection application process is already underway for both projects and has been updated to reflect new turbine technology and project designs.
• Land lease option agreements have been executed for both projects and the rights of way required for the transmission lines required for interconnection are well advanced. The projects are located in a high wind resource area of Northeastern Mexico and in close proximity to the high voltage transmission network.
• Environmental permitting for both projects commenced a number of years ago and is expected to be taken up again post the regulatory updates and increasing market certainty from recent government announcements.
• The majority of minor permits and authorisations required for both projects are already in place and will be updated as needed to reflect any further optimization of the design for each project.

The El 24 and Presa Nueva Wind Projects represent core assets within Revolve Renewable Power Corp.’s “develop and sell” portfolio—one of the three main components of the Company’s business strategy. Under this model, Revolve takes large-scale renewable energy projects from the greenfield stage to a ready-to-build phase, after which it sells the development rights to major utilities and independent power producers. A recent example of this approach is the sale of the Parker and Bouse projects in the United States, with Revolve receiving a US$3.4 million milestone payment for the Bouse Solar and Storage Project as of June 10, 2024.

The Company’s second strategic pillar is the “develop and hold” model, through which it builds, owns, and operates smaller utility-scale projects (under 50 MW) and distributed generation (DG) projects. The third pillar, M&A Expansion, underpins both strategies by driving growth through targeted acquisitions of operating or late-stage development assets.

Mexico Regulatory Update

Mexico enacted a new Electricity Sector Law (LSE), replacing the 2014 Electricity Industry Law and introducing a fresh regulatory framework for the country’s power sector.

Distributed Generation (DG): The permit threshold for DG projects has been raised from 500 kW to 700 kW, allowing Revolve and its clients to develop larger systems without requiring permits. Additionally, a streamlined process is being introduced for interconnection of projects between 700 kW and 20 MW, supporting Revolve’s DG expansion in Mexico.

Utility Scale: After a six-year pause in private sector investment, the new law reopens the path for private utility-scale power development, establishing clearer development and interconnection timelines. Energy storage is now formally recognized, prompting Revolve to evaluate and integrate storage solutions into its El 24 and Presa Nueva wind projects.