Caliza: Scaling Solar, Storage with Quality and Trust

Q: How has Caliza’s strategy adapted and evolved in recent years in response to changes in Mexico’s regulatory energy framework?

A: Caliza’s strategy focused on the segment of the energy sector where we saw the highest degree of regulatory certainty: distributed generation. Large-scale projects were, and to some extent still are, subject to significant uncertainty, although there is now a bit more clarity.

Even when proposed regulatory changes emerged, such as the draft regulation published by COFEMER around two years ago that suggested removing net metering, we sought to understand what the government intended and how to position ourselves accordingly. That regulation, for instance, emphasized the importance of generating and consuming energy on-site, a principle that was reinforced in subsequent updates.

Q: How challenging has it been to maintain flexibility in these circumstances?

A: It has been very challenging. Regulatory uncertainty always introduces delays, which complicates the sales process. You must wait and see whether a new law will be enacted, when it will be published, what the feedback period will look like.

Our task has been to convince clients that acting now makes more sense, especially given the cost savings and current benefits, such as subsidized permitting and net metering equipment, which CFE often provides at no charge. Today’s regulatory framework remains highly favorable to solar energy, particularly for on-site generation.

We advise clients that although they could wait for greater regulatory clarity, they would be doing so at the risk of losing one of the most advantageous regulatory environments in the world. Even if changes occur, solar generation in Mexico will remain a sound investment because of our abundant solar resources and the current affordability of technology, considering panel and component costs have dropped significantly. Our role is not just to install solar panels,  it is also to guide companies through uncertainty with clarity and confidence.

Ultimately, it comes down to building trust and demonstrating that distributed generation carries very low risk. Despite the challenges, we have continued to grow and to secure high-profile industrial clients through clear and innovative solutions. That speaks of the work we and other companies in the sector have done to build confidence and cultivate the market.

Q: How have your current and prospective clients evolved? Are they asking for different types of solutions now?

A: The evolution has come in phases. With the latest regulatory shift, we are seeing renewed interest in opportunities like isolated supply. Clients are now asking, for instance, how much a 10MW system would cost or how complex such a project would be. These conversations were rare in the past because of major permitting hurdles.

If I look back one or two years, particularly around the peak of the nearshoring wave, the primary motivation for many clients was emissions reduction, even over economic savings. Some industrial clients prioritized emissions goals when weighing whether to greenlight solar projects or other competing investments. That was a marked change. These clients had dedicated budgets for sustainability initiatives, so solar was not competing directly with core business investments. The inclusion of emissions as a key performance metric often gave solar projects a competitive edge. That was particularly true for companies relocating manufacturing to Mexico, as many had to meet international sustainability targets.

As we transition into isolated supply and mid-sized projects of 5, 10, or even 20MW, there is growing pressure to ensure quality and safety in execution. Clients are asking who is responsible for construction, what commissioning tests will be done, and how quality and safety will be guaranteed. That is where Caliza shines, bridging technical excellence with strategic value.

Q: What are some of the common challenges you foresee in energy storage implementation? And to what extent do you believe it can deliver the promised benefits, such as congestion relief and system support?

A: Secondary regulations for storage were published around a month and a half ago in the Official Gazette. However, further clarification is still needed in some areas. For example, in the context of DG or isolated supply, the regulations mention that there may be minimum battery capacity requirements, but it remains unclear regarding how these will be defined and enforced.

That said, the publication of these rules has already created more certainty for companies that had previously installed batteries. The law states that if you already have batteries installed, you only need to submit a notice to CRE, and now the National Energy Commission (CNE) to report them. For companies that want to install batteries strictly for backup purposes without integrating solar, the current rules are relatively clear—and arguably underregulated—in a way that supports the sector's growth.

Previously, one only needed to notify CRE/CNE or CENACE of the system's storage capacity, without the need for a formal permit. The situation becomes more complex when discussing storage integrated with renewable energy.

For backup, grid disconnection, or peak shaving purposes, the benefits are clear. Storage allows energy to be shifted from peak periods to base load, which should facilitate the shutdown of less efficient, high-emission power plants. However, accurately measuring the environmental impact of batteries, particularly in terms of CO2 emissions, is very challenging. Many of our clients struggle with this when evaluating battery projects. They often need to justify the investment within traditional project evaluation frameworks, where batteries may not compete favorably with production lines or expansion projects.

It will be important to frame battery projects in terms of their contribution to energy transition goals or carbon footprint reduction and in energy resilience , rather than evaluating them solely through traditional investment metrics. That’s why we help them reframe storage as a strategic asset, critical for resilience, emissions reduction and future-proofing their operations.

The second major benefit is reducing congestion. When batteries are combined with renewables, they should theoretically help expand the hosting capacity of grids that are already nearing saturation. CFE publishes grid saturation levels by region on a semiannual basis, and many of these areas are approaching their limits. If properly integrated, storage systems should help the grid absorb more clean energy rather than constrain it.

However, a key challenge lies in how the government chooses to distinguish between different energy storage use cases. In previous DACGs for distributed generation, there were stipulations that limited inverter capacity based on the interconnection capacity, an approach that does not necessarily make sense. If batteries are being used for self-consumption, why should their power capacity be limited to the interconnection agreement?

There will need to be more flexibility and nuance in how solar and storage systems are regulated, depending on whether they are used for isolated supply, with or without grid sales, or DG. For example, a battery might never inject electricity into the grid, while solar does. Yet, the regulations may not currently reflect this distinction.

If a battery is being installed purely for emergency backup, it might require high capacity but should not be restricted by grid injection limits. Conversely, if a solar system with batteries is designed for peak shaving, grid-related limitations on the solar component could unintentionally undermine the backup function.

Caliza builds trust amid shifting rules, backing distributed solar and driving storage solutions as regulations and client needs evolve in the energy sector.