Ricardo Zuñiga
Country Manager
Expert Contributor

The Bet on Mexico Is Still On …

By Ricardo Zuñiga | Thu, 07/21/2022 - 17:00

The uncertainty of the environment in Mexico’s power sector has significantly affected the market. This is nothing new but it still continues to surprise us almost every day. This was one of the world’s most attractive markets, with great potential for development. Sadly, the word I’m using is “was” but I really hope to soon see an “is” instead.  We cannot qualify it or judge it solely based on what has happened during this last period; we must keep our eyes on the future and think about everything that is to come.

The future of the energy sector in Mexico will be in the hands of those who bet that in the long term, projects will materialize and that the conditions will favor the development of generation projects that help meet the needs of consumers in the country. The country will need people and companies willing to do good things that promote growth in every sector, not just power.

It is easy to say but it requires more than muscle and patience: having a clear and grounded strategy is a priority now more than ever. But it needs to be a strategy that is not written in stone, that can be continuously analyzed and that can adapt to the changes that occur along the way. When the road is difficult, it requires more resources. I'm not just talking about money: we need talent, creativity and to sit down and think about how we can bring new business models, new solutions, new approaches to the table.

Understanding Mexico has its challenges, even for us Mexicans, but if we manage to understand it, there is much to do. Unfortunately, in recent years, there have been changes that have not favored the development of new projects, while the country's demand continues to grow. It is a situation that cannot and should not continue for a long time. In fact, it is coming to an end and soon it will be time to find a way to get back on track.

Local issues added to the global crisis that is impacting energy costs worldwide are having an impact beyond what we thought and that especially affects technologies that consume fossil fuels. That is why now more than ever we must design and operate projects whose efficiencies are as high as possible, promote cogeneration, hybrid projects and obviously renewables.

Despite the fact that the conditions today are not the best, we see a market with a lot of movement, many companies looking for self-supply long-term solutions and bidding projects with the future in mind. As a company that makes solutions to address the energy needs of industrials, we must plant enough seeds so when the story continues we will see our garden green and flourishing.

Photo by:   Ricardo Zuñiga