Building a Bridge Between Suppliers and Users: Regulus

Q: Regulus presents itself as a marketer rather than an energy supplier. How are you positioned in the Mexican market today and how has that position evolved in recent years?

A: Regulus was created in 2018 with the purpose of becoming a distinct participant that could bridge a missing link in the wholesale electricity market. The entity that reaches the final user is the qualified service supplier. Once that supplier represents the end user, it carries a significant workload and responsibility due to the nature of its business. In order to serve that user, it must secure generation or a form of electric coverage. This requirement, coupled with investments in "Class A" metering systems, adds financial pressure to its operations. This is where Regulus plays a role by providing that necessary link. We work with qualified service suppliers to offer the coverage they need in order to remain competitive and deliver a dependable product to the final user. 

As of 2025, the market includes twenty-six marketers that are not suppliers. It is not a large group. It is essentially a financial figure that must rely on financial models that structure sound and balanced portfolios capable of generating and optimizing liquidity in the market. This is the core value that marketers contribute.

During its first three years, Regulus focused on international marketing with Guatemala, engaging in energy imports and exports as opportunities arose. Later, we established counterparts in the CAISO and ERCOT markets in California and Texas. We also began conducting similar transactions with the United States. Few players are able to cover the full range of requirements needed to operate in this manner. Success depends on understanding that there are moments in the year when losses must be absorbed and managed. This requires detailed modeling based on the information available from national and international public systems. Having a highly specialized workforce is the foundation for building the best strategies; one that also understands how to interact with counterparties and structure import and export operations responsibly.

In 2021, we closed our first coverage contracts, mainly supporting renewable energy generators. We then began signing contracts with qualified service suppliers operating in Mexico, initially five of them, four located in the Monterrey region. We continue to maintain very solid relationships with these companies and work to generate competitive opportunities that support their growth strategies. Since they focus on securing final users who are large consumers, it is essential for us to help them expand. It is a complementary relationship that gives greater coherence and strength to the market.

Nowadays, there is also an opportunity to move beyond what is known as the legacy system. Legacy permits were once successful and served their purpose, but they must eventually reach an endpoint. I refer mainly to the self-supply scheme, which became highly controversial in the previous administration. The model included incentives that were intended to encourage early participation, but such incentives cannot remain in place indefinitely. The energy market does not operate on incentives of that nature. The transition must be toward a regulated market where all participants pay regulated tariffs. This was one of the federal government’s main concerns. In the legacy scheme, some users paid extremely low wheeling charges despite operating thousands of load centers, resulting in losses for CFE. That situation is not sustainable. In the market framework, regulated tariffs apply to all.

Q: How have the needs of your clients changed, and how do you see the market evolving? 

A: Many of our clients are qualified service suppliers, and their needs evolve according to emerging development hubs. The federal government’s strategy to promote specific development zones is positive. My clients are preparing to support users in those regions, who will require energy to operate. Many of these companies have headquarters or parent companies in other countries, which means they must comply with environmental commitments abroad. 

We currently have clean energy certificates in Mexico, and internationally there is the I-REC system. Many companies must demonstrate that their headquarters are meeting environmental requirements. At Regulus, we are offering new coverage models with mixed profiles. This is innovative because few companies offer it. We analyze the end user’s needs and provide renewable energy during certain hours of the day and a fixed profile when required. An informed and empowered user will expect higher performance from market participants. That expectation contributes to a healthier and more competitive sector.

Q: Companies must anticipate high costs and identify ways to manage them efficiently. How do you see the future of the sector and, in particular, the future for energy marketers?

A: I see a strengthened electricity market. Since 2025, the federal government has sent clear signals that it wants an energy sector capable of supporting national development. This is evident in the new infrastructure being built and in the official announcements promoting central Mexico as a strategic location for data center development and other modern industries. Mexico’s geography positions the country as an attractive hub for global investment.

This moment also represents an opportunity to generate value across all layers of society. I refer not only to corporate activity, but to education, workforce development, and the inclusion of Indigenous communities, which are now recognized constitutionally as a level of government. These communities play a critical role in enabling responsible development. When they are excluded, projects face opposition. When they are included, informed, and integrated into local development plans, they understand the benefits and contribute meaningfully. This is an approach we want to promote in regions with strong development potential, including central states such as Hidalgo. These opportunities will make the country stronger.

Regarding future sector needs, I am very encouraged by the decisions being made by private companies, both domestic and foreign, that are investing in the electricity sector. Recently, the Ministry of Energy and the National Energy Commission issued a call for priority projects. The level of interest was so high that the authorities had to host three separate briefing sessions. This response shows that market appetite remains strong and that Mexico continues to be an attractive place to invest.

Q: How do you see the regulatory framework evolving as we look toward projects planned for 2026, 2027, and beyond?

A: The current approach reflects the government’s austerity policy, which includes consolidating sector leadership under a single authority with subordinate decentralized bodies. This structure has existed in various forms throughout history, and each administration applies it according to its priorities. What matters for us as users of the system is that the mechanisms for attention and guidance operate clearly and effectively. We need institutions that can outline requirements precisely and that can explain how to move forward. Once they provide that clarity, companies can develop solutions and documentation accordingly.

During the previous administration, the rapid opening of the sector led to a wave of project proposals based on opportunity rather than comprehensive planning. Many individuals obtained permits for projects on private land without fully evaluating technical or grid feasibility. Problems emerged when projects attempted to connect to transmission infrastructure that was located too far away or lacked available capacity. Without a full executive project model that considers long-term operational conditions, many of these developments became unviable, and a secondary market for unused permits emerged. The government now seeks to restore order by linking development to specific regional needs. When authorities indicate where capacity exists and where infrastructure is available, they are providing developers with clearer signals and a more coherent planning approach.

Operationalizing this model will take time, and we all hope it succeeds. Many developers are already moving forward, and once their projects advance, they will require contracts that support financial viability. That is where we can participate. If a company is selected to develop a specific project, we can approach them to explore capacity or volume purchases in regions where we expect growth and where long-term PPAs align with our strategy. For now, we are observing how the process unfolds and preparing to engage as these projects progress.

Regulus Energía is a Non-Supplier Marketer that helps companies buy, sell, and optimize energy transactions in Mexico’s Wholesale Electricity Market. The company focuses on reducing costs, managing risk, and designing smarter, more efficient energy strategies tailored to the operational and financial needs of its clients.