Our consultants work alongside energy companies, governmental organizations, and institutional investors
Value creation begins with an on-site consultation where we learn about your needs and assess the size and scope of the project. We seek to optimize the profitability for clients over the full lifecycle of the project.
Our standard consulting services include feasibility assessments, technical consulting, and project management. We also provide management support, property management, property development, and operations and maintenance services.
Mexico’s power grid will have to be expanded and modernized to handle the large amount of renewable projects that will need to be connected to the grid. Mexico’s Minister of Energy said that “over the next 15 years the country aims to build almost 25,000km of new power transmission lines, achieving an investment of at least $13.4 billion.”
We believe the reforming of the Mexican power market will raise efficiency in the power sector in the coming years, as a result of increased investment in T&D, and pricing mechanisms to alleviate power shortages. Iberdrola has committed roughly $5 billion worth of investment into the Mexican power sector between with almost half of the capital targeted at T&D infrastructure.
Pipelines in Mexico have approved tariffs and rates which offer attractive internal rates of return for investors. Most of the contracts that currently underpin the construction and operation of the pipelines in Mexico are long-term, fixed-rate contracts.
Energy Insights
Capacity Prices and the Wholesale Electricity Market
The Status of 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. Some generators under construction were unable to contract all their energy or received overly low prices at previous auctions.
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. Most of the less expensive piped gas goes only to the northern states of Mexico, in part to provide power for factories.
An Overview of Virtual Power Purchase Agreements
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.
