Vision and commitment

Our commitment to helping create a low-carbon-emission economy enables us to provide a specialized service with a multi-disciplinary focus, which gives us a strategic perspective unique to this industry. We have the capacity and experience to capitalize on investment opportunities produced by Mexico’s energy reform. This experience permits us, in the very short term, to define business strategies for capitalizing on new opportunities that will become available as a result of this new paradigm, helping our investors to position themselves early on and competitively access these new possibilities.

Innovation, solidity and experience are distinct characteristics that have set Gauss Energía apart since its inception, more than 10 years ago. We have ventured in various areas of the energy sector with groundbreaking projects in Mexico. Some of the key projects are the following:

SOLAR POWER


PV facility Aura Solar I

DESCRIPTION

The Aura Solar I facility, the first utility-scale in Mexico, is built over a surface area of 100 hectares. With an investment of US$100 million, this vast project includes the installation of 132,000 polycrystalline solar modules with single-axis tracking technology, with a capacity of 39 MWp and a lifespan of 30 years.

LOCATION

Located in the city of La Paz, Baja California Sur, Aura I adjoins the La Paz Industrial Park (to the northeast), and 2.9 kilometers to the south is the Olas Altas electrical substation owned by the Federal Electricity Commission (CFE). This region has one of the highest average solar irradiance indexes in the country, more than 5.8 kWh/m2 per day.

USE OF THE ENERGY

Aura I operates under the “Small Producer” regulatory regime awarded by the Energy Regulation Council (CRE). The facility’s power offtaker is CFE (82 GWh/year) contracted under a 20-year PPA. CFE will pay for the energy supplied by the project based on the short-run total cost (CTCP) at the La Paz node.

Aura Solar I is interconnected with the Olas Altas substation through a new 2.9-km long, 115 kv transmission line, and has been delivering energy to the CFE since September 2013.

Unlike other solar parks of this size in the world, Aura Solar I receives no subsidy from any public or private agency. It is the first utiliy-scale solar project developed under this regulation scheme, and currently the largest solar plant in Mexico.

REGIONAL DEVELOPMENT

Aura Solar I helps reduce the consumption of fossil fuels and avoids the emission of 45,000 metric tons of CO2 a year. Its production is equivalent to the consumption of 65% of the city of La Paz.

OUR ROLE

Aura Solar I is owned by the Mexican investment group Corporación Aura Solar. Gauss Energía developed the project and currently manages and administers the assets. It also has the backing of the EPC company Martifer Solar, an international engineering and construction group experienced in installing solar parks in various parts of the world, with more than 500 MW already installed. Because of the sustainable nature of the project, Nacional Financiera (Nafin) and the World Bank’s International Finance Corporation (IFC) contributed a combined 75 percent of the total investment for the project in the form of debt.

Aura Solar supplies energy to 65% of the city of La Paz.

PV facility Aura Solar II

DESCRIPTION

As part of the Aura Solar Initiative, Corporación Aura Solar develops its first international project: Aura Solar II in Honduras. The plant will have a capacity of 61 MWp, with a total investment of US$120, and will generate 125 GWh/year. This project will include the installation of nearly 200,000 polycrystalline solar modules over a surface area of 150 hectares.

LOCATION

The facility, developed by Gauss Energía, is located in Choluteca, in southern Honduras, a region with one of the highest average solar resources in Central America, with an irradiation index of more than 5.5 kWh/m2 per day.

USE OF THE ENERGY

Aura Solar II will be interconnected with the Santa Lucía substation, where the energy will be delivered to the Empresa Nacional de Energía Eléctrica (ENEE), through a 20-year power purchase agreement (PPA).

REGIONAL DEVELOPMENT

Corporación Aura Solar, respectful of the environmental, social, labor and industrial security aspects, has assumed specific commitments in these areas, with strict observance of the applicable laws and under the supervision of the financial entities participating in the project. The facility will generate 125 GWh/year, which is equivalent to providing clean energy to more than 80,000 families in Honduras.

OUR ROLE

Aura Solar II, the largest solar project in Mexico and Central America, will be funded by private investment from Mexico and Honduras, as well as financing from institutions like the World Bank’s International Finance Corporation (IFC), Bancomext and the German development bank DEG. It also has the backing of the Government of Honduras, as joint debtor of the ENEE, through a support agreement approved by the Honduran Congress, which promotes the development of renewable-source power generation projects, particularly photovoltaic energy.

The Spanish firm Isolux- Corsán, with whom we have signed an engineering, procurement and construction (EPC) contract that is already under way, will be in charge of construction, startup and operation.The plant will start operations in the second quarter of 2015.

Aura Solar II: clean energy to more than 80,000 families in Honduras.

WIND POWER


Bii Hioxo

DESCRIPTION

Developed by Gas Natural Fenosa, the project has an installed capacity of 234 MW and was built with an investment of US$500 million.

LOCATION

The Bii Hioxo wind farm is located in Juchitán, on the Isthmus of Tehuantepec, Oaxaca, Mexico, a region with the greatest wind potential in the country.

USE OF THE ENERGY

The main buyer of the power produced by this wind farm is the Chedraui supermarket chain.

REGIONAL DEVELOPMENT

Since its inception, the project has maintained a close relationship with the community owning the land where it is located, having signed around 200 leasing contracts with the different owners. Its development was closely coordinated with that community.

OUR ROLE

Gauss developed the commercial structure of the project for Grupo Chedraui.

Projects in Oaxaca and Zacatecas, regions with the greatest wind potential in the country.

Piedra Larga, phases I and II

DESCRIPTION

Developed by Renovalia Energy International, the Piedra Larga wind farm has an installed capacity of 227.5 MW; total investment was US$500 million.

LOCATION

The Piedra Larga facility is in Unión Hidalgo, in the La Ventosa region of Oaxaca, Mexico, in the Isthmus of Tehuantepec, one of the windiest regions of the country.

USE OF THE ENERGY

The main buyers of the power produced by this wind farm are Grupo Bimbo (90MW), Walmart de México y Centroamérica (114 MW), Grupo Calidra, Frisco, and Papalote Museo del Niño (the remaining 23.5 MW).

REGIONAL DEVELOPMENT

Some 800 direct jobs were created during the construction phase and the facility currently generates a substantial flow of economic resources for the region. The wind farm also avoids the consumption of 65 million liters of diesel fuel a year and the emission of 180,000 metric tons of CO2 into the atmosphere.

OUR ROLE

Gauss designed the total strategy for analyzing the economic viability and commercial structuring of the project, all in full compliance with existing regulations, and negotiated the PPAs with the project’s offtakers.

La Bufa

DESCRIPTION

Developed by Mexico Power Group, a subsidiary of Cannon Power Holdings, total investment in this project came to US$260 million; it has a total capacity of 180 MW.

LOCATION

The wind farm is located in Guadalupe, Zacatecas, Mexico.

USE OF THE ENERGY

Volkswagen de México is the main offtaker of power from this project.

REGIONAL DEVELOPMENT

The project will avoid the emission of 140,000 metric tons of CO2 into the atmosphere and will generate an economic flow of Ps. 60 million a year in the state.

OUR ROLE

Gauss’ involvement in developing the La Bufa wind farm included the commercial structuring and design of the project, as well as negotiating the PPA with Volkswagen de México.

BIOMASS


Tamazula sugar mill

DESCRIPTION

Mexico’s sugar industry has tremendous potential for generating power with biomass, in this case, cane bagasse. The Tamazula sugar mill decided to invest US$51 million in the technological conversion of its boilers and on power generating equipment. A high-pressure boiler produces enough steam to generate 31 MW of electrical power, producing 88 GWh per year.

LOCATION

Tamazula, Jalisco.

USE OF THE ENERGY

The Tamazula sugar mill will consume 11.5 MW and the rest will be sold to remote users through the CFE network under a Renewable Source Interconnection Contract, which helps solve the problem of intermittent bagasse production that limits output by co-generation systems.

REGIONAL DEVELOPMENT

The project avoids the consumption of fuel oil and prevents environmental pollution in the region.

OUR ROLE

Gauss prepared the development and commercial structuring strategy to turn the Tamazula sugar mill, owned by Grupo Sáenz, into a power mill with the capacity to produce refined sugar products, bioethanol, process steam and export excess electricity to remote users. This project puts Azúcar Grupo Sáenz at the forefront of international sugar industry trends.

A high-pressure boiler produces 88 GWh per year and avoids the consumption of fuel oil.

EFFICIENT CO-GENERATION


PEP compression stations

DESCRIPTION

Some Pemex production processes result in the emission of combustion gases into the air at temperatures of above 500°C. This heat, specifically what is produced by four PEP compression stations—Samaria, Cunduacán, Atasta and Burgos—can be turned into 160 MW of efficient co-generation.

LOCATION

Gas Nuevo Pemex Processing Center, Nuevo Pemex, Tabasco

USE OF THE ENERGY

Consumed by Pemex’s facilities themselves and exported to remote users through the CFE network.

REGIONAL DEVELOPMENT

Reduces greenhouse gases.

OUR ROLE

Gauss structured and proposed a joint venture to Pemex for introducing efficient co-generation projects using residual gas recovery systems, with an investment of US$75 million.

Pemex introduces efficient production processes and reduces greenhouse gases.

MINI HYDRO POWER


Xalapa Integral Project

DESCRIPTION

Odebrecht de México and the state of Veracruz structured a Public-Private Partnership (PPP) to jointly invest in a new comprehensive urban water supply system in the municipality of Xalapa and to generate electrical power with a total capacity of 67.3 MW.

LOCATION

Jalcomulco, Veracruz, over the bed of the Los Pescados river.

USE OF THE ENERGY

Municipality of Xalapa, Veracruz (water pumping) and sale of excess power to remote users through the CFE network.

REGIONAL DEVELOPMENT

In addition to supplying water for urban use, the project will help increase the efficiency of regional irrigation systems and control flash flooding, reducing the risk of inundation and minimizing the possibilities of damage to infrastructure.

OUR ROLE

Gauss designed the comprehensive strategy for analyzing the regulatory viability and commercial structuring of the project.

Larger supply of water for urban use, greater efficiency of regional irrigation systems and less risk of inundations.