Fast-track power plant delivered to Mexico with O&M agreement, Wärtsilä supplies the complete package

Wärtsilä Corporation, Press release 7 December 2018 at 12:00 UTC+2
  • Wärtsilä 50SG engine
  • Pemcorp

A 130 MW power plant, delivered on an Engineering, Procurement and Construction (EPC) basis by the technology group Wärtsilä, has commenced full operations. Wärtsilä also operates and maintains the facility under a three-year operation and maintenance (O&M) agreement. The natural gas fuelled plant was ordered in October 2017 by Pemcorp, a Mexico-based independent power producer, on behalf of the owners, Texas-based Arroyo Energy Investors, specialists in power generation projects. The plant operates on seven Wärtsilä 50SG gas-fuelled engines, each with an output of 18.7 MW.

The facility is located close to the city of Monterrey, Mexico. It will provide the electricity supply for a nearby major Asian automobile factory under a long-term power purchase agreement (PPA). Full operations commenced in September 2018, just 11 months after the signing of the original order with Wärtsilä.

The O&M agreement between Wärtsilä and Pemcorp, which was signed in September, includes a 15-year Guaranteed Asset Performance Agreement. Additionally, Wärtsilä is providing a Recovery Guarantee for the generator sets to ensure a rapid recovery process in the case of an unforeseen event causing an interruption to the power generation.

“Because of our PPA obligations, it was essential to have extremely fast response, both in time-to-market and in operations in order to provide high-quality power to our customer. Wärtsilä succeeded in supplying and constructing the plant in just 11 months, which was an impressive feat. Furthermore, the efficiency, reliability, and flexibility of the Wärtsilä engines, backed by the operations, maintenance, and performance agreements, provide the long-term predictability and reliability required by international capital markets investors. Given this experience, Arroyo will look to deploy Wärtsilä technology elsewhere in the region,” commented Matthew Ginzberg, Principal, Arroyo Energy Investors. 

“The high reliability offered by our multi-unit power plant solution, combined with high simple-cycle efficiency, were the key factors in our being awarded this contract. The value proposition that we are able to provide represents a complete package. It combines our equipment, procurement, and construction (EPC) capabilities with the backing of O&M service, to give a winning format,” said Sampo Suvisaari, Regional Director, Latin America North and the Caribbean, Wärtsilä Energy Solutions.

Image caption: The agreement was signed by Matthew Ginzberg, Principal, Arroyo Energy Partners, and Raúl Carral, Business Development Manager, Mexico, Central America and the Caribbean, Wärtsilä Energy Solutions.

For more information, please contact:

Raul Carral
Business Development Manager, Mexico, Central America and the Caribbean
Wärtsilä Energy Solutions
Tel. +1 (281) 233-6210

Fabien Cadaut
Manager, Marketing & Communications
Wärtsilä Energy Solutions
Tel: + 358 40 756 5959

Wärtsilä Energy Solutions in brief
Wärtsilä Energy Solutions is leading the transition towards a 100% renewable energy future. As an Energy System Integrator, we understand, design, build and serve optimal power systems for future generations. Our offering includes ultra-flexible internal combustion engine-based power plants, hybridised solar power plants, energy storage & integration solutions, as well as gas to power systems. Wärtsilä’s solutions provide the needed flexibility to integrate renewables and secure power system reliability. Wärtsilä has 68 GW of installed power plant capacity in 177 countries around the world.

Wärtsilä in brief
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2017, Wärtsilä’s net sales totalled EUR 4.9 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.

Arroyo Energy Investors in brief
Arroyo Energy Investors is an independent private equity firm that focuses on investing in energy infrastructure assets in the power generation, power storage and midstream space in North and South America. Arroyo Energy Investors has offices in The Woodlands, Texas and Santiago, Chile. For more information, visit