qualified user registration and energy procurement process
Our efficient process and strong network with regulators and energy suppliers allows companies to lower energy costs in Mexico’s newly-deregulated energy market. Our consultants manage and monitor the entire RFP process and provide due diligence and risk analysis reports for each PPA proposal. We work directly with your legal team during the final contract negotiations with the selected supplier, and we facilitate the Qualified User and Assets Registration process.
Value creation begins with initial discussions and follow-up calls with executives and plant staff to develop energy procurement strategy for energy consumption
Analysis of regional market data and supplier due diligence
Financial models provided assessing various scenarios to lower energy costs at the plants, with varying risk/return profiles
Presentation of recommendations on energy procurement strategy to key stakeholders
We gather market data and prepare all necessary market analysis to assist in the development of an energy procurement strategy for your organization.
Consultants provide in-depth analysis and recommendations to assist in selecting the supplier of choice.
Our legal team manages the negotiation of the power purchase agreement and Qualified User registration, including the registration of assets.
RFP Process includes:
Procurement of retail supplier to purchase electricity on the wholesale markets
Identify all viable suppliers and perform pre-qualification process
Perform a comprehensive RFP process with high-quality suppliers
Contracting and implementation
Registration of assets and installation of transformers and meters
Regulatory environment
Qualified user process
Energy generation and consumption
Power pricing and auctions
Renewable energy off-takers
Development bank project consulting
PPA Negotiation
Learn More About Energy Procurement in Mexico
Best Practices for Energy Efficiency
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.
Opportunities for Energy Efficiency in Mexico
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.
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.
Risks are Rising in Mexico's Power Market
How Risky Are Mexican Bilateral PPAs?
A bilateral power purchase agreement (PPA) has a different risk profile than a contract with Mexico's state-owned electric utility, CFE. As the Mexican economy faces pressure from the coronavirus and lower oil prices, it is crucial to reevaluate risks. In theory, commercial and industrial (C&I) providers are more vulnerable to economic cycles and shocks. CFE provides essential services to many consumers, so it is supported by a much larger revenue base, as well as the Mexican government. We expect that CFE will be able to deliver on its contracts, despite credit rating downgrades throughout Mexico.
Congestion pricing risk might be less of an issue in the short-term due to lower overall electricity usage. Rapid growth in Mexican power consumption often pushes the electrical grid to the limit of its capacity. When that happens, the cost of transferring power across the network rises. CFE always assumes this risk, but bilateral PPAs are more flexible. Temporarily higher electricity transmission fees due to congestion may be assigned to either party in a bilateral PPA, which usually increases risk.
Experienced Consultants and Advisors
Paola Moreno leads the renewable energy practice at Mexico Energy Partners. Paola’s insights create value for clients with challenges related to renewable energy, energy efficiency, and optimizing fuel supplies. Paola has a Master of Science in Technological Systems Management: Energy, Technology, and Policy from Stony Brook University. Paola also has a Bachelor of Science in Electrical Engineering from the National University of Colombia. Paola has special expertise on issues related to climate change, renewable energy technologies, electric markets, and energy policy.
Rodolfo is an attorney and senior advisor with expertise in energy, natural resources, and infrastructure projects. He covers the entire lifecycle of energy projects including bidding applications, M&A, financing, dispute resolution, construction, operation and maintenance, and licensing. He also resolves environmental, compliance, and regulatory concerns. Rodolfo routinely represents clients before the Energy and Environmental Ministry, state regulatory agencies, such as Energy Regulatory Comission and Hidrocarbons Regulatory Comission on matters arising under federal statutes and implementing regulations, including the Energy Reform of 2013.
Learn more about our energy procurement services
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