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Sempra Energy’s (SRE - Analyst Report) Mexican unit announced that it will sell half of its share in a wind project to InterGen NV in Mexico. The transaction is subject to regulatory approvals in the U.S. and Mexico.

Infraestructura Energetica Nova SAB (IEnova), the local unit of Sempra Energy, plans to sell 50% of its stake in the 155 megawatt (MW) first phase of Energía Sierra Juarez (“ESJ”) wind project. Located in the Municipality of Tecate, Baja California, Mexico, this project is believed to be the first wind-generation venture between the two countries.

This $300 million first phase of the wind project will employ 47 3.3-MW turbines that are being produced by Vestas Wind Systems A/S. Phase 1 is slated to come online by the first half of 2015. Sempra’s another subsidiary, San Diego Gas & Electric Co., has agreed to buy the electricity from this wind project under a 20-year power purchase agreement.

Sempra is focused on expanding its wind and solar renewable portfolio. In Mar 2014, the company’s subsidiary, Sempra U.S. Gas & Power, entered into an agreement with Consolidated Edison Inc. (ED - Analyst Report) for the joint ownership and operation of five solar projects in California and Nevada. Together all the facilities will generate 360 MW of electricity. This will help Sempra to meet California’s renewable energy mandate that calls for generating 33% of energy from renewable sources by 2020. The output from these solar farms has been sold under long-term power purchase agreements.

These efforts will enable Sempra Energy to create a well-balanced renewable portfolio in the wind and solar energy sector.

Currently, Sempra Energy holds a Zacks Rank #3 (Hold). Well-ranked stocks worth considering in the utility space are AGL Resources Inc. (GAS - Analyst Report) and Gas Natural Inc. (EGAS - Snapshot Report), both with a Zacks Rank #1 (Strong Buy).

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