Ramón Basanta
CEO
ATCO Energía
/
View from the Top

Better Conditions, Prices, Risk-Reduction

Tue, 03/10/2020 - 17:39

Q: Given the new energy scenario under the present administration, how has ATCO become more competitive?

A: ATCO Energía participates in the Wholesale Electricity Market (WEM) and focuses on the commercial and industrial sectors with energy requirements that exceed 1MW. The auctions were a mechanism for CFE Basic supply to engage and procure electricity and other products, therefore its suspension doesn’t not impact the Qualified market, at least not directly. ATCO Energía is a competitive company because it provides its customers better terms and prices, while at the same time reducing risk for the consumer through a diversified energy production portfolio. ATCO Energía focuses on having a diverse and strong energy portfolio as well as analyzing its own market position when buying or selling, which endows it with flexibility. 

 

Q: In terms of energy mix, how is ATCO’s energy mix established and what are its targets?

A: The percentage between renewables and firm power in our portfolio depends on the market. The idea is to have a completely diversified portfolio in order to reduce risk. That diversification, in the case of ATCO, is not limited to technology. We must buy electricity from various sources: solar, wind and gas. At the same time, diverse contract terms must be considered. We don’t have a fixed energy mix because we need to adjust our portfolio as we buy. The assets in our portfolio complement each other, which allows us to provide a better electricity price. The production fluctuations of each asset are also considered in order to offer a complete product, no matter which energy source it comes from. 

 

Q: From ATCO’s point of view, what regulatory changes does the electricity market in Mexico need to reach a balance?

A:  An important fact is that electricity cannot be stored, it needs to be produced and consumed at the same time, which is why a long-term vision is needed and it must include not only generation but also transmission. Therefore, Mexico will transition to a system capable of handling a good percentage form renewable assets (intermittent) and enough firm and stable plants.  A regulatory framework that promotes investment in both areas will give certainty to Mexican energy ecosystem. In this scenario, we would immediately see a large number of transactions in the market, creating liquidity, a vital requirement for any market to operate efficiently. Hence, the market will provide clear price signals which will guide efficient investments, new players and the growth of the industry. It is important to be aware that the market’s development requires time and investment in infrastructure, and its success depends on stakeholders with realistic and formal proposals. Therefore, efforts in the regulatory side should promote the efficiency of the market in order to evolve accordingly.

 

Q: From ATCO’s point of view, what regulatory changes does the electricity market in Mexico need to reach a balance?

A: ATCO Energía is considered a serious and highly sophisticated qualified supplier in Mexico. So far, we have succeeded in establishing communication channels and cooperation agreements with new customers and other energy suppliers. Customer registration has already begun and is expected to exceed 20 new registrations. In the short term, we must continue to strengthen ATCO Energía’s reputation as a QSS among customers, power generators, competitors and regulatory agencies. It is a priority for us to preserve the long-term vision that from the beginning has set the company apart. Our success strategy is geared toward long-term stability and maintaining a diversified portfolio.

ATCO Energía is a part of ATCO Group. The company has received approval from the CENACE to provide electricity and related services as a Qualified Supplier. Its focus is to meet the needs of qualified users under the new regulatory framework in Mexico.