CAF, CFE to Develop Energy Storage
CFE and the Development Bank of Latin America (CAF) signed an agreement to cooperate in the development of energy storage. The deal adds to a US$200 billion revolving credit line granted to CFE.
In January 2023, CAF granted CFE a credit line to support the company’s post-pandemic economic recovery efforts and manage its working capital requirements. “This loan is part of the set of tools to support the economic recovery of CAF member countries. It is at the service of Mexico through support to CFE, a leading public electricity supplier in the country, to contribute to its financial sustainability,” said Sergio Díaz-Granados, Executive President, CAF.
On March 3, 2023, CAF and CFE signed an agreement to support the state company with technical assistance, allowing it to develop a technology adoption strategy and construct projects involving energy storage systems. Furthermore, an analysis of the Mexican National Electricity System (SEN) will be carried out in specific regions to model different scenarios and determine the financial viability of energy storage solutions as well as technological alternatives. “This operation is part of CAF’s regional countercyclical facility aimed at companies providing public services, in this case electricity, aimed at addressing the working capital financing needs of borrowers within the framework of the economic recovery of Latin America and the Caribbean,” reads the statement.
CAF underlined that storage systems play a crucial role in adding value to sustainable energy and transforming energy systems by storing electricity and making it available when needed.
Energy storage is considered to be paramount for the energy transition but developing such expensive infrastructure is one of the biggest challenges that Mexico faces, according to experts. “Mexico is going through a very important industrial growth. However, there is an issue regarding energy growth and problems related to it have appeared in certain regions of the country. Batteries and energy storage represent a great opportunity for the country. With the necessary technology and financing instruments already available, regulation must catch up to take advantage of this energy storage opportunity,” said Carla Ortiz, Country Manager, RER Energy Group.
Moreover, the growing demand for renewable energy and energy storage infrastructure is generating new opportunities for companies. The prevailing trends in energy storage include progress in lithium-ion battery technology, exploration of lithium alternatives, development of solid-state batteries, advanced thermal energy storage solutions and the emergence of distributed storage systems.