BBVA And GIZ Publish New Study On DG In Mexico

In alliance with the German Cooperation for Sustainable Development (GIZ), BBVA Mexico published a study on the development of distributed generation (DG) in Mexico, with which the bank aims to provide prospective users with better financial products to fund the projects.

Through the GIZ program Support for the Implementation of the Energy Transition in Mexico (TrEM), BBVA collaboratively developed the study called Distributed Generation - Introduction and Key Concepts. The study is part of BBVA Mexico's efforts to strengthen its technical knowledge in the energy environment, with the aim to provide better advice to its customers regarding the global sustainable energy transition. The study includes a section on the evolution of the market and its growth projections, providing residential, commercial and industrial customers with a better outlook on its potential adoption.

Irma Acosta Pedregal, Director of Responsible Business and Sustainability, BBVA Mexico, commented that “the path of transition towards sustainability began at BBVA Mexico in 2000, when the bank was one of the first companies to gain the Socially Responsible Company (ESR) distinction. Since then, it has been in line with global trends by becoming part of the change."

Ricardo Duhart Novaro, Director of Strategy and Solutions for Corporate and Government Banking, BBVA Mexico, added that "the alliance with GIZ has helped us to gain a deeper understanding of the distributed solar generation market and in this way allows us to develop comprehensive solutions to support our clients on the road to sustainability."

Adriana Aragón, Director, TrEM Program, pointed out that "the alliance with BBVA Mexico has been key to energizing the DG market in Mexico by offering new specialized products that allow for a greater deployment of sustainable technologies."

Among the relevant data published, the past decade’s increase in the installed capacity of DG power plants and interconnection contracts stands out, with an annual growth rate in installed capacity of 91 percent. From 2019 to 2020 alone, the growth in installed capacity was 43 percent. The study estimated that the cumulative investment needed to meet the DG forecast by 2026 will be between US$3.2 billion and US$5.26 billion.