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.
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
July 22, 2020
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.
July 11, 2020
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.
June 16, 2020
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.
June 15, 2020
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.
Contact us today
Our mission is to help clients successfully execute on projects in Mexico’s energy sector. We put our client’s interests ahead of our own and we always maintain an independent perspective.
30 Wall Street, New York, NY 10005
+1 212 901 8601
Lago Alberto 319, Col. Anahuac, CDMX, 11520
+52 55 8652 8023
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