Northland Power has completed the sale of its La Lucha solar facility to Cometa Energía, a subsidiary of Saavi Energía for $205 million. This transaction, which was initially announced in March 2024 has now been successfully finalized.
Northland Sells 130MW Solar Facility to Cometa Energía
Northland Power is a prominent independent power producer that specializes in the development, financing, construction, ownership and operation of energy infrastructure assets. The company utilizes renewable energy sources such as natural gas, biomass, wind and solar, employing both simple and combined-cycle gas turbines as well as cogeneration technologies.
Northland Power works in partnership with indigenous groups, independent companies and municipalities to develop and operate power generation facilities. The company has a global presence, with operational bases in Latin America, Asia, North America and Europe.
Northland recently transferred ownership of its 130 MW La Lucha solar asset to Cometa Energía, a subsidiary of Saavi Energía. Cometa is Mexico’s largest privately owned standalone generator and the fourth-largest independent power producer in the country.
As a wholly owned subsidiary of Global Infrastructure Partners, Cometa is the second-largest independent power producer in Mexico with approximately 2.6 GW of capacity across six plants and three mobile units holding a 10% market share. Additionally, Cometa oversees three compression plants across Mexico.
Northland Sells La Lucha Plant for $205M
In March, Northland agreed to sell its entire stake in the La Lucha plant anticipating proceeds of approximately USD 205 million (EUR 191.3m) after taxes and fees. The sale of the solar farm is also in line with Northland's strategy to recycle capital, utilizing the funds raised to repay debt and for general corporate purposes.
The divestment was part of the company’s strategy to concentrate on core markets, streamline its business structure, and reinvest capital.
“This transaction underscores Northland’s strategy to divest assets from non-core markets, enhancing liquidity and focusing our business on core markets.” said Mike Crawley, President and CEO of Northland Power.
La Lucha Marks Saavi's First Operational Solar Facility
Saavi's first operational solar facility will be La Lucha. The La Lucha PV park has been generating electricity since June of last year and the divestment represents a major milestone for the company in Mexico.
Saavi's current portfolio comprises six combined cycle gas turbine power plants along with compression stations and associated natural gas pipelines. Since 2021, Saavi has been under the ownership of the private equity firm Global Infrastructure Partners.
This transaction represents a significant milestone for Cometa Energía as it expands its renewable energy portfolio, while also highlighting Northland Power's dedication to improving liquidity and focusing on strategic initiatives. As both companies adapt to changes in the energy sector, this sale establishes a benchmark for future developments in Mexico's renewable energy industry.