The Spanish infrastructure, energy and telecommunications group Elecnor has been awarded a contract to build a wind farm in the Mexican state of Baja California for USD 17.8 million.

The San Matías Wind Farm Project includes the installation of eight 3.8-megawatt (MW) wind turbines, which will total 30 MW of installed power in an area of approximately 250 hectares.

The project will take place within the San Matías community, which borders Mexicali, the capital of Baja California del Norte, and the municipalities of Tecate and Ensenada.

The project includes the engineering and construction of civil works such as roads, as well as wind turbine platforms and foundations, an underground medium-voltage grid, the electromechanical assembly and termination of the wind turbines, a booster substation, a connector substation, a junction with the existing transmission line and a communications line.

The output from the wind farm will be monitored and managed from a control centre located within the farm's electrical substation. Each wind turbine will have an individual monitoring and surveillance system to ensure both local and remote control. The project has been led by the Fuerza Eólica de San Matías company, currently owned by Sinia Renovables, a Banco Sabadell subsidiary that specialises in energy projects.  

Elecnor in Mexico

Elecnor's 25-year presence in Mexico has seen it build more than 70 electrical substations with a total installed power of 7,000 MVAr, plus 1,500 km of transmission lines, 255 km of optical fibre, as well as the construction of two combined cycle power plants, a hydroelectric power plant, a 170-km gas pipeline and three wind farms, and the construction or renovation of six hospitals. Most significant recent projects:

- Extension of six 115-kV and 161-kV power capacity substations.

- Empalme II Combined Cycle Power Plant, with a power capacity of 791 MW.

- 170-km Morelos gas pipeline.

- Red Occidental power transmission, four transmission lines and three 400-kV and 115-kV substations. - Agua Prieta II Combined Cycle Power Plant, with a power capacity of 394 MW.

- Tizimín wind farm with a power capacity of 75 MW.

- Fenicias wind farm with a power capacity of 168 MW.

- San Matías wind farm with a power capacity of 30 MW.

The Spanish infrastructure, energy and telecommunications group Elecnor has ended the first nine months of 2019 with a consolidated net profit, in its ordinary activities, of EUR 57.1 million, which represents an increase of 5.3% compared with the figure of 54.2 million for the same period in the previous year. 

Corporate operations

The Elecnor Group acquired 44.3% of Aste and 42.57% of Dioxipe, taking its stake in these companies to 100% and 97.57% respectively, for a price of EUR 14.2 million. As a result, the Group increased the average return on its joint investment in this business.

Due to this operation, the Group recorded a lower profit of EUR 40.5 million in the income statement for the first nine months of 2019. This amount mainly reflects the impact of the valuation of the interest-rate derivatives of both projects at the date of acquisition of control (already reflected in Net Equity in the Consolidated Financial Statements for the first half of 2019), as well as an estimate of the allocation of the purchase price mentioned in the previous paragraph. Taking everything into account, the consolidated net profit for the first nine months of 2019 is EUR 16.5 million.

In addition, it should be noted that after the close of the third quarter and as notified to the CNMV as a material fact on 7 November, the Elecnor Group has just signed an agreement with the Dutch fund APG to expand their strategic alliance and acquire joint control of Celeo Concesiones e Inversiones, an operation that will provide gains before the close of the 2019 financial year, amply offsetting the accounting impacts described above.


Net revenues reached EUR 1.6106 billion, 1.5% higher than the figure reported in the same period of the previous year. Elecnor, which maintains its position as a leader in the domestic market, is continuing to pursue the internationalisation of its activities. As such, at 30 September 2019, the foreign and domestic markets accounted for 51% and 49% of revenues, respectively. 

90% of these sales revenues were from the Infrastructure business line, while the other 10% from the Concession business line. This breakdown is similar to that recorded for the same period in the previous year. The growth in activity was achieved thanks to the good performance of both lines, which complement and enrich each other. 

The improvement in the figures of the Infrastructure business line is attributable to: a) leadership in service activities in the domestic market; b) the construction of power transmission lines in Brazil; c) the development of wind farms in the Magallanes region (Chile), Toabré (Panama) and Boulenouar (Mauritania); d) railway tunnel projects in Norway, e) growth in electricity and telecommunications activities in the United Kingdom; f) the strengthening of the company's presence in Africa, g) positive trends for the US subsidiaries; and h) development of other projects in the foreign market. 

With regard to the Concession business line, it should be noted that Elecnor currently operates 5,470 kilometres of power transmission lines in Chile and Brazil, and participates in 1,464 MW of renewable energy in operation or under construction in Spain, Brazil and Canada. 

A solid backlog

The backlog of signed contracts that are expected to be executed within the next 12 months amounted to EUR 2.239 billion (compared with 2.226 billion at 30 September 2018). Of this figure, 75% originated from outside Spain (amounting to EUR 1.671 billion) and the remaining 25% from the domestic market (EUR 567 million). 

The Group maintains its goal—for the whole of the 2019 financial year—of exceeding and improving on the sales revenue and net profit figures achieved in 2018.


The Spanish infrastructure, energy and telecommunications Elecnor group and the Dutch group APG, manager of the second largest pension fund in the world, have signed a strategic alliance, which extends the one already subscribed in Celeo Redes, S.L., for the development and joint investment in power transmission and renewable energy projects, except wind power projects.

As part of this agreement, Elecnor and APG expect to receive joint investments of EUR 400 million from shareholders, to be disbursed over the next five years. Through this agreement, APG is to join Celeo Concesiones e Inversiones, S.L., a company currently fully owned by the Elecnor Group, with 49% of the shareholding. This involves the contribution of APG's shares in Celeo Redes and a payment of EUR 43 million. As such, Celeo will be jointly managed by Elecnor and APG. As part of this agreement, Elecnor and APG expect to receive joint investments of EUR 400 million from shareholders, to be disbursed over the next five years.

The fair value of the shared assets is also expected to have a significant positive impact on the consolidated income of the Elecnor Group for the current financial year. This positive accounting impact will be determined on the date the deal is closed.

In addition, this deal will have a significant impact on the consolidated balance sheet dated 30 June 2019, mainly by reducing the financial debt and non-current assets.

The agreement must be approved by the financial institutions and the relevant competent authorities before coming into effect. The deal is expected to be closed in the coming weeks.

Elecnor has received legal advice from Cuatrecasas and APG has received financial advice from Banco Santander and legal advice from Uria Menéndez.