Facing declining oil production, Mexico installs one of the world's largest wind farms

With a price tag of $550 million, a new wind farm in Mexico is not cheap.

But with oil production falling 9% last year, Mexico realized it needed to take a step toward the future, according to this USA Today article.

Situated on the isthmus between the Gulf of Mexico and the Pacific Ocean, the 6,180-acre farm will boast 167 turbines capable of generating 250 megawatts of electricity. The area has wind gusts of 16-22 mph.

The wind farm is being built and operated by Spanish energy company Acciona Energia, which says it should produce enough electricity for a half million homes, and reduce carbon emissions by 600,000 metric tons annually.

Accounting for other wind projects, Mexico aims to generate 2,500 megawatts of electricity by 2012.

One thing I like about this project is the fact that Mexican cement giant Cemex is putting forward 25% of the development costs, in return for the rights to some electricity. Cemex wants to reduce its energy costs.

Under President Obama's plan to revitalize our economy with green initiatives, he should offer tax incentives that encourage U.S. manufacturers to invest in public wind and solar projects.