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Mexico Energy Partners LLC
Mexico Energy Partners LLC
Mexico Energy Partners LLC

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Mexico Energy Insights

Mexico Energy Insights

Perspectives on the energy sector that create value for over 10,000 market participants each month

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Energy Efficiency in Mexico - Mexico Energy Insights blog - Mexico Energy Partners

Opportunities For Energy Efficiency

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.

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Energy Procurement in Mexico, PPA Agreements, and Virtual PPAs

Energy Procurement In Mexico

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.

 

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CENACE recently announced changes in regulations that will delay the addition of renewable power plants to Mexico's electrical grid.

Risks Are Rising In Mexico's Power Market

CENACE announced changes in regulations that will delay the addition of renewable power plants to Mexico's electrical grid. The regulatory change with the most immediate impact is the temporary suspension of commissioning tests for solar and wind plants, which means new plants cannot come online. 

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Mexican Wholesale Electricity Market (MEM): Electricity producers send bids to the National Center for Energy Control (CENACE) that indicate the amount of energy they are offering at a specific price.

The Wholesale Electricity Market

The Mexican Wholesale Electricity Market (MEM) is a short-term market where prices are determined one day in advance or in real-time. Electricity producers send bids to the National Center for Energy Control (CENACE) that indicate the amount of energy they are offering at a specific price. 

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The Status of Energy Auctions in Mexico

The Energy Auctions in Mexico

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. 

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Natural gas production must increase in Mexico to sustain growing demand. Some of the necessary work is already taking place. About half of Mexico’s electrical grid capacity additions between 2016 and 2018 came from natural gas.

The Natural Gas Industry In Mexico

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. 

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Virtual power purchase agreements (PPAs)

An Overview Of Virtual PPAs

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. 

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Frequently Asked Questions About Power Purchase Agreements

Frequently Asked Questions

A power purchase agreement sets out the terms of a bi-lateral agreement in which one organization buys energy from another. The main elements of a power purchase agreement include the price for capacity, the price for energy (basically, the marginal cost of electricity), and the number of years that it will last.

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Solar Power in Mexico Enjoys Strong Fundamentals

Solar Power Enjoys Strong Fundamentals

Mexico was the first country to commit to specific targets under the Paris Climate Agreement, and achieving those targets is driving the adoption of solar energy. Mexico agreed to cut greenhouse gas emissions 22% by 2030.

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Renewable Energy Project Execution

Renewable Energy Project Execution

Energy project execution received significant unfavorable coverage in Mexico this year, which makes it imperative to look at the issues carefully. There is a real danger of underbidding and delayed projects in renewable energy auctions. However, we believe Mexico’s overall record is good by international standards. 

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Mexican natural gas

Reliance on US Natural Gas Poses Risks

Over the last 20 years, the Mexican natural gas scenario changed dramatically. During the nineties, a decrease in natural gas prices and ongoing improvements in combined cycle technology resulted in a large substitution of oil power stations by natural gas and combined cycle plants. 

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Energy Efficiency Solutions In Mexico

Energy Efficiency Solutions In Mexico

Our Energy Efficiency Assessments begin with our consultants analyzing historical energy consumption and identifying trends or ways to optimize energy spending. We meet with building/facility staff and management to discuss the strategy of the facility or plant, which allows us to make thorough recommendations on ways to lower the energy footprint. 

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Mission & Values

Our mission is to help clients successfully execute projects in Mexico’s energy sector. We put our client’s interests ahead of our own and always maintain an independent perspective.

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Contact

  • US - Corporate Headquarters

30 Wall Street, New York, New York 10005

+1 212 917 6956

info@mexicoenergypartners.com

  • Mexico - Corporate Headquarters

Av. Ejército Nacional Mexicano 769, 16th floor, Granada, Miguel Hidalgo 11520

+52 55 8652 8023

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