Energy Procurement

Energy Procurement

Corporate Power Purchase Agreements for Renewable Energy

The Energy Procurement Process

The Energy Procurement Process

Evaluating different suppliers, understanding the pricing formula, analyzing the regional electricity markets, and navigating the regulatory process is vital to selecting a qualified supplier.

Our consultants work directly with your legal team during contract negotiations with the selected supplier, and we facilitate the Qualified User and Assets Registration process. We manage the Request for Proposal (RFP) process and provide each PPA proposal's due diligence and risk analysis reports.

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Renewable Energy Procurement

Step 1: Strategy Development

Every industrial plant has unique energy requirements. We develop a tailored procurement strategy considering your operational schedules, energy consumption patterns, and long-term business goals.

We begin with a thorough analysis of your current energy consumption, costs, and contractual arrangements. This critical first step lays the foundation for developing the procurement strategy.

  • Consumption Analysis: We meticulously analyze your current energy usage, identifying peak demand, load profiles, and potential inefficiencies.
  • Market Assessment: Our consultants stay abreast of the dynamic Mexican energy market, including supplier offerings, regulatory changes, and pricing trends.
  • Energy Bill Analysis: We break down your current energy bill, identifying hidden fees and potential cost reduction opportunities.
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Our legal experts manage the negotiation of the key terms and conditions of the power purchase agreement (PPA).

Step 2: The RFP Process

We identify and evaluate potential energy suppliers by leveraging our in-depth knowledge of the Mexican energy market. We focus on finding reliable suppliers offering competitive rates that align with your plant's energy needs.

Strategic Supplier Selection:

  • Supplier Vetting: We leverage our extensive network and market intelligence to identify the most competitive and reliable energy suppliers based on your needs.
  • RFP Development: Our legal team crafts a targeted Request for Proposal (RFP) to send to potential suppliers outlining your requirements and desired contract terms.
  • Competitive Bidding: We facilitate a transparent bidding process, ensuring you receive the best possible offers from qualified suppliers.

Our clients have experienced savings ranging from 10% to 25%, depending on their location. This significant reduction in energy costs translates to enhanced competitiveness and profitability for your industrial plant.

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Signing the Power Purchase Agreement in Mexico

Step 3: Signing the Power Purchase Agreement

Qualified users can sign PPAs with qualified power suppliers who will manage interactions between the user and the Wholesale Electrical Market (MEM). PPAs can supply energy to all of your plants under one contract, which typically ranges from three to five years in duration.

Our legal experts work on your behalf to secure favorable contract terms.

Expert Contract Negotiation:

  • Clause-by-Clause Analysis: We dissect each supplier offer, negotiating favorable terms on price, fixed/variable rates, escalation mechanisms, and contract duration.
  • Risk Mitigation: Our legal experts safeguard your interests by addressing force majeure events, supply interruptions, and termination clauses.
  • Value Optimization: We go beyond price, securing additional benefits like EV charging stations, flexible billing options, and renewable energy integration opportunities.

Post-signing, we assist in the seamless implementation of your new energy contracts. 

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Frequently Asked Questions About Procurement with Mexico Energy Partners Renewable Energy Company

Frequently Asked Questions

Energy Procurement in Mexico

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Mercado de Balanza de Potencia in Mexico

Understanding Mercado de Balance de Potencia

While the Mercado de Balance de Potencia in Mexico maintains grid stability, industrial energy consumers must navigate inherent risks related to capacity management, market volatility, and regulatory compliance.

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The Role of AI in Energy Procurement

The Role of AI in Energy Procurement

By leveraging AI for predictive analytics, renewable energy integration, real-time trading, and risk management, managers can achieve cost savings, meet sustainability targets, and enhance operational efficiency. 

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Understanding the Usuario Calificado Process

Understanding the Usuario Calificado Process

To become a Qualified User in Mexico a company must meet certain consumption thresholds. Entities consuming more than 1 MW (megawatt) of electricity per year can opt for this status. This threshold makes the option viable primarily for industrial and large commercial users.

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