The 20-year agreement covers the La Bufa wind farm, which is being developed in the state of Zacatecas, Mexico, and is expected to be completed by the end of 2014.

Power generated by the farm will be used by Volkswagen Mexico’s Puebla vehicle manufacturing plant and its Silao engine plant.

Mexico Power Group chairman Gerald Monkhouse said, "Mexico Power Group is excited about providing clean, affordable energy to our new partner, Volkswagen Mexico and to contribute to the development in the Zacatecas region generating economic benefits and employment opportunities."

Zacatecas state governor Miguel Alonso Reyes said the development will offer a lot of economic and environmental benefits to the community.

"This is the kind of project we need for our people, our workers, our families and our future. We are ready to work hand in hand with Mexico Power Group and Volkswagen Mexico on this important project." Reyes added.