Italian energy group Enel SpA (BIT:ENEL) announced yesterday it has broken ground on a 754-MW direct current (DC) solar plant in Mexico.

The Villanueva photovoltaic (PV) project, which will require USD 650 million (EUR 604.19m) in investments, is comprised of two PV farms of 427 MW and 327 MW. Financed with own resources, it should be up and running in the second half of 2018.

Through its unit Enel Green Power Mexico (EGPM), the firm will build the solar facility in Coahuila state. When complete, Villanueva is expected to generate 1,700 GWh of electricity annually, enough to meet the demand of 1.3 million Mexican homes, the developer said.

Dubbed not only as the largest PV project on the continent but also in Enel's portfolio, Villanueva was among the winners in Mexico’s first long-term public tender with 15-year power supply and 20-year clean certificate supply contracts.

Earlier this week, Enel started construction of its 200-MW Amistad wind farm, also located in Mexico's Coahuila state. Currently, EGPM has 728 MW of installed renewable capacity in the country.