VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / April 8, 2025 / Revolve Renewable Power Corp. (TSXV:REVV)(OTCQB:REVVF) ("Revolve" or the "Company"), a North American owner, operator and developer of renewable energy projects, is pleased to announce project development work on the Company's two utility scale wind projects in Mexico is being accelerated as a result of increased regulatory certainty. Development work on its two most advanced projects, which have a combined projected capacity of 531 megawatts ("MW"), is intensifying following new electricity generation regulations that have been implemented in Mexico.
"The Government of Mexico has implemented significant updates to legislation for the energy sector that provides greater certainty for renewable energy developers and distributed generation providers," said Revolve COO Omar Bojorquez. "Our successful history developing utility-scale wind energy and smaller-scale distributed generation commercial projects in Mexico has positioned us well as we seek to advance two large scale utility wind projects and expand our distributed generation business."
Revolve has two late-stage utility wind projects in Mexico:
Project Overviews | ||
|---|---|---|
Project Name | El 24 Wind Farm | Presa Nueva (I & II) |
Location | Tamaulipas, Mexico | Nuevo Leon, Mexico |
Technology | Wind | Wind |
Size | 131 MW | 400 MW |
RTB Target | Q4 2026 | Q1 2027 |
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 are key assets in the Company's "develop and sell" pipeline of renewable energy projects - one of three key pillars in Revolve's business model. Revolve develops large utility scale projects from greenfield to ready-to-build status, at which point it sells the development rights to large utilities and independent power producers. The sale of the Parker and Bouse projects in the US (Latest update June 10, 2024 - Revolve Receives US$3.4 million Bouse Solar and Storage Project Milestone Payment) are a recent example of this segment of the Company's revenue stream.
The second pillar of the Company's model is the "develop and hold" segment - Revolve develops, builds, owns and operates smaller utility scale projects (under 50 MW) as well as distributed generation ("DG") projects. The third pillar, M&A Expansion, supports both of these strategies. Revolve accelerates its growth through strategic acquisitions of operating assets and/or later stage development assets.
Mexico Regulatory Update
On March 18, 2025, a Decree was published, enacting a package of new secondary laws in the energy sector, among which the Electricity Sector Law ("LSE") was issued. This new law repeals the Electricity Industry Law of 2014 ("LIE") and establishes a new framework to govern all activities that comprise Mexico's electricity sector.
Distributed Generation
The new regulations increase the permit threshold for self-generation projects, or DG, from 500 kilowatts ("kW") to 700 kW. For Revolve and the Company's customers, this will allow for larger projects without the need for a self-generation permit. Additionally, a simplified procedure will be introduced for self-consumption interconnection permits for projects with capacities ranging between 700 kW and 20 MW. Both of these changes will benefit the Company's as it seeks to expand its DG business in Mexico.
Utility Scale
For utility scale renewable energy projects, the new laws provide a path forward for private market participants after six years during which private investment in new power plants was virtually halted. The new regulations institute a framework for project development and implements certain timelines associated with interconnection.
The new regulations also recognize energy storage as a key element of the electricity sector. As a result, the Company is assessing storage requirements for El 24 and Presa Nueva and updating project designs to incorporate energy storage.
For more information on the regulatory reforms, please visit the Government of Mexico.
For further information contact: |
Myke Clark, CEO |
About Revolve
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar, hydro and battery storage projects in the US, Canada and Mexico. Revolve also installs and operates sub 20MW "behind the meter" distributed generation (or "DG") assets. Revolve's portfolio includes the following:
Operating Assets: 12 MW (net) of operating assets under long term power purchase agreements across Canada and Mexico covering wind, solar, battery storage and hydro generation;
Development: a diverse portfolio of utility scale development projects across the US, Canada and Mexico with a combined capacity of over 3,000MWs as well as a 140MW+ distributed generation portfolio that is under development.
Revolve has an accomplished management team with a demonstrated track record of taking projects from "greenfield" through to "ready to build" status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 1,550MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US, Canada and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG assets.
Forward Looking Information
The forward-looking statements contained in this news release constitute 'forward-looking information' within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, 'forward-looking statements"). The words "will", "expects", "estimates", "projections", "forecast", "intends", "anticipates", "believes", "targets" (and grammatical variations of such terms) and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements in this press release include statements with respect to the Company's business objectives and project development goals. This forward-looking information and other forward-looking information are based on our opinions, estimates and assumptions considering our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Material factors underlying forward-looking information and management's expectations include: the receipt of applicable regulatory approvals; the absence of material adverse regulatory decisions being received and the expectation of regulatory stability; the absence of any material equipment breakdown or failure; availability of financing on commercially reasonable terms and the stability of credit ratings of the Company and its subsidiaries; the absence of unexpected material liabilities or uninsured losses; the continued availability of commodity supplies and stability of commodity prices; the absence of interest rate increases or significant currency exchange rate fluctuations; the absence of significant operational, financial or supply chain disruptions or liability, including relating to import controls and tariffs; the continued ability to maintain systems and facilities to ensure their continued performance; the absence of a severe and prolonged downturn in general economic, credit, social or market conditions; the successful and timely development and construction of new projects; the absence of capital project or financing cost overruns; sufficient liquidity and capital resources; the continuation of long term weather patterns and trends; the absence of significant counterparty defaults; the continued competitiveness of electricity pricing when compared with alternative sources of energy; the realization of the anticipated benefits of the Company's acquisitions and joint ventures; the absence of a change in applicable laws, political conditions, public policies and directions by governments, materially negatively affecting the Company; the ability to obtain and maintain licenses and permits; maintenance of adequate insurance coverage; the absence of material fluctuations in market energy prices; the absence of material disputes with taxation authorities or changes to applicable tax laws; continued maintenance of information technology infrastructure and the absence of a material breach of cybersecurity; the successful implementation of new information technology systems and infrastructure; favourable relations with external stakeholders; our ability to retain key personnel; our ability to maintain and expand distribution capabilities; and our ability to continue investing in infrastructure to support our growth.
Such uncertainties and risks may include, among others, market conditions, delays in obtaining or failure to obtain required regulatory approvals in a timely fashion, or at all; the availability of financing, fluctuating prices, the possibility of project cost overruns, mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, adverse weather conditions, and unanticipated costs and expenses, variations in the cost of energy or materials or supplies or environmental impacts on operations, disruptions to the Company's supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; risks related to the development and potential development of the Company's projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company's continuous disclosure filings on SEDAR+ at sedarplus.ca. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned that given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required by law.
Such statements and information reflect the current view of the Company. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking information contained in this press release represents the expectations of the Company as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company does not undertake to update this information at any time except as required in accordance with applicable laws.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
SOURCE: Revolve Renewable Power Corp.
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