Ricardo Cardiel
CEO
Latin American Rainmakers
/
View from the Top

Bringing Prosperity and Greener Alternatives to the Energy Sector

By Conal Quinn | Thu, 06/16/2022 - 11:15

Q: How has demand for the company’s services developed throughout the recent period? 

A: Our main activity in oil and gas is supplying equipment for pipeline systems and valves 

to integrate new transmission pipelines. During the COVID-19 pandemic, we did not have too many customers looking to increase capacity or to take on new oil and gas projects. This contrasts greatly with the electricity sector, especially our power generation projects, which continued running nonstop over the past two years with round-the-clock demand for our services. 

Despite all the noise caused by reforms, customers are still looking for solutions. We know that major investors still have big plans for Mexico. Uncertainty has slowed the private sector down but customers cannot wait around. They are looking for alternatives to provide more efficient and more profitable solutions. The demand is surpassing what is currently on offer in the market, especially in power generation supply.

Around 70 percent of our business portfolio concerns providing distributed generation (DG) solutions. The diversity of our clients ranges from egg-producing farms and textile manufacturers to the petrochemical and automotive industries.

 

Q: How does Latin American Rainmakers add value to its clients through its expertise?

A: What we do best is understand game theory. Latin American Rainmakers tries to identify the benefits for every stakeholder involved in a project, analyzing the maximum benefit we can provide to each of them. Our work has changed with the pandemic and the logistical challenges that it brought, as well as all the geopolitical tensions in the world but we still look beyond the margins in each of our transactions with an eye on how to maximize the benefits for stakeholders. For some clients, it is just about improving their financial performance after losses accrued during the pandemic but others are looking to revamp their environmental image. If companies want to be successful in oil and gas and electricity generation, they must recognize their potential social benefit and possess a comprehensive understanding of regulation. Ultimately, it is our role to make things happen and make the most of opportunities. As an economic community, we need to be more dynamic and proactive to reduce gaps in the market and put an end to delays and hesitation. Closing business quickly helps everyone, not just our own company.


 

Q: How could regulation be amended to promote the development of the electricity sector?

A: Adjustment periods are natural, especially after the big change we experienced following the 2013 Energy Reform. What we are experiencing, however, is evolution. One of the most important changes we need now is to let all participants compete equally under the same terms and conditions, aligning efforts towards a shared objective: the strengthening of Mexico’s energy infrastructure. There is enough capacity for everyone, since demand is surpassing what is currently on offer and GDP growth depends a great deal on it. 

Another point that must be reviewed relates to power distribution projects. Four million companies in Mexico are SMEs and most of these are suffering through the current power crisis with bad electricity supply and frequent interruptions. Moreover, they are paying higher rates than the big companies even though they constitute the backbone of the economy and employ 35.4 millions people, representing 52% of GDP. A big step forward would be to simply raise the DG cap from 0.5MW to 1.0MW. Such a development would solve so many issues, releasing the capacity to supply more customers, create more jobs, install more projects and move the economy forward. This would also help us meet our international commitments concerning the environment for 2024. 

 

Q: What value add do you bring to the energy industry and how do you see yourself developing the sector?

A: We operate across several axes, depending on the dynamics of the economy and where we see ourselves adapting and fitting into the market. Our flexibility to operate within oil and gas, energy, power generation, business development and project financing is one of our key advantages. Indeed, the financial area has some of our biggest stakeholders. Our clients want to know that every project we structure, no matter how big or small, is accompanied by a rigorous financial analysis. 

We have a commitment to show customers the real ROI on the table. We assess all the alternatives by working with the best partners to provide financial solutions for every project we are involved in. If a client is unwilling to invest their own capital into a project, Latin American Rainmakers can find a solution. The client must be focused on its core business, not on any additional activities. This is where we come in, solving their power generation problems and providing energy of the best quality at the lowest rates.

 

Q: How are you setting yourself apart with the increased competition in the competitive DG market?

A: What sets us apart is our vast experience, having celebrated 15 years in the market this year. Our personal touch attending to a clients’ individual needs differentiates us from our competitors. The company provides tailor-made solutions for specific needs, which could be improving revenue, becoming more efficient, reducing carbon emissions or meeting clean energy commitments. Some are looking for financial solutions, others require technical assistance; whatever it may be, we do not cut corners. We do not want to provide short-term solutions but, instead, offer a long-term vision in line with our slogan: “Let us bring prosperity to your business.” Quite frankly, newcomers in the market disappear as quickly as they come onto the scene. No matter what, Latin American Rainmakers will persist, resist and never desist in its efforts to help others prosper.

 

 

Latin American Rainmakers is a socially-responsible company that offers industrial systems solutions backed by 20 years of experience in supply engineering, design, installation and maintenance of power systems.

Conal Quinn Conal Quinn Journalist & Industry Analyst