Mexican conglomerate Grupo Bal and US energy firm AES Corporation have created EnerAB, a joint venture to undertake electricity generation projects in Mexico.

The operation required $2.5 billion invested equally by both companies, according to media reports.

The new venture will profit from the opportunities offered by the wholesale electricity market, focusing on cogeneration and combined cycle initiatives.

EnerAB will consider natural gas industrial usage, electricity storage and water desalinisation projects.

Energia Electrica Bal currently develops activities in the oil, financial, mining and agroindustry sectors.