Baja California’s energy structure is different from the rest of Mexico, as it runs off an independent electric power grid, separate from the country’s main grid system. Despite significant solar and wind potential, the state continues to rely heavily on the importation of natural gas from the U.S.

Due to the regulatory environment with respect to new utility-scale projects in Mexico, the large suppliers have been reluctant to put forth aggressive bids at our RFP auctions like in the past. However, we are still seeing discounts of 5% to 15% for new Qualified Users in Mexico. 

Solar-powered LED lights and the Internet of Things (IoT) are two different ways to cut expenses and improve energy efficiency. Furthermore, the synergies achieved by combining these two technologies creates far more benefits than either one of them alone.

The Mexico City Government has big plans to develop the solar footprint of one of the world’s largest cities, introducing the Solar City (Ciudad Solar) initiative in 2019. 

Mexico Energy Partners helps companies to improve energy efficiency, but that needs to be followed up with continuous monitoring and management. Proper monitoring is the key to ensuring that management's plans are successfully implemented so that energy expenses remain low. 

The number of energy options available to businesses and consumers expanded dramatically over the last several decades, but those new options also created new risks. Energy contract provisions can limit those risks, but market participants must know where to look.

End users and industrial businesses are sometimes challenged by the lack of pipeline infrastructure that shuts them out of natural gas supplies in Mexico. This is an area for potential growth as either Mexican or foreign investors can seek out opportunities to build out this needed infrastructure.

The coronavirus crisis placed many businesses in the unusual position of being able to save significant amounts of money through improved energy efficiency during protracted shutdowns. There are specific best practices that firms can use to determine how much they can save, safely make the changes, and then reverse the process when business starts up again.

Specific programs were created to assist firms and households in making the transition to power-saving technology. The Eco-Crédito Empresaria is perhaps the most important for small and medium-sized businesses. This credit helps firms upgrade their equipment to more energy-efficient technology.

Businesses and other organizations use 76% of the energy produced in Mexico, and they are increasingly interested in procuring renewable energy. Over 1,500 firms already use renewables, and capacity keeps rising. Mexico reached over 24,000 MW of sustainable energy capacity in 2019. As the number of market participants rises and the depth of the market increases, renewable power becomes more reliable and cost-effective.

The status of energy auctions in Mexico has become increasingly complicated, but private auctions still promise to help Mexico transition to clean energy. The immediate impact of private auctions will mostly be on existing projects, but they could lead to additional renewable energy development in the future. 

New pipelines have enormous potential to support increased natural gas production in Mexico and also reduce the costs of imports. Although there is already an impressive pipeline infrastructure for transporting natural gas from the U.S. into Mexico, it does not reach the entire country. 

For many years, the market for clean energy was limited by unstable prices. Energy prices are generally difficult to predict, but clean energy adds the uncertainty of new technologies and the weather.