Spanish power company Iberdrola will invest $610 million to build a generation plant in the northern Mexican city of Monterrey, according to a report in Mexico City daily Reforma.

The plant, dubbed Monterrey II, will generate approximately 1 000 MW, of which 50 percent will be sold to private companies in the area and 50 percent sold to state-owned power utility the Federal Electricity Commission (CFE).

Earlier this year, Iberdrola won a 25-year contract from the CFE to build a 1 000 MW generation plant in the port city of Altamira, on the Gulf of Mexico in the northeastern state of Tamaulipas. The new contracts will make Iberdrola the largest privately owned power generator in Mexico, according to the report.