Circutor Shares Grid Code Expertise With Students

Q: How did Circutor reach the Mexican market and what role does the country play within the company's global business strategy?

A: Outside the European market, the subsidiary in Mexico and Central America is the most important for Circutor. We have expanded to serve Mexico’s needs by opening our portfolio of components so that local manufacturers can build their solutions. One of our key solutions is our capacitor bank. Seventy percent of what we offer to the market is provided directly but 30 percent of our business is dedicated to supporting all national designs with our manufacturing. In Mexico, we already have a capacitor factory that serves an important role in this supply of components. 

We access the Mexican market through our master distributors, as well as via engineering, procurement and construction (EPC) players that integrate our solutions into their engineering. Although we generally do not sell to the end user, we have successfully supported end users as well.

Q: How has the Mexican market developed for Circutor? 

A: COVID-19 ushered in a difficult period for Mexico; however, it was not a complete catastrophe. For example, the food and beverages sector grew and became more important for us. In 2021, business went mostly back to normal as Circutor achieved growth. At the end of that year, the automotive sector began to stabilize, along with other sectors. A new challenge arrived, too, in the new Grid Code, which sought to make the grid more secure through enhanced energy efficiency and stability. This code has been mandatory since 2016; however, regulator CRE had not tied any consequences to a lack of compliance. The market reacted and because energy efficiency is our mainspring, our business developed significantly both in Mexico and in Central America. Although the code does not apply in Central America, we have replicated its best practices there to great success. In Mexico, we have become a benchmark for Grid Code solutions.

There are challenges, too, as the economic recession is taking shape and the lack of certainty in regulatory issues is slowing down investment. This causes companies that do not yet understand the importance of energy issues to leave the matter by the wayside. Another problem we knew was coming but not how bad it would be, was the lack of electronic components, mostly microprocessors, which we need to complete our solutions. To tackle the issue and not raise our costs, we invested heavily in building stock, even though component costs soared. By the end of 1Q23, this issue will subside and we can begin delivering our products faster than before.

Q: How can Circtor help foster greater awareness about issues surrounding the Grid Code?

A: Experts agree that part of the problem we have in the energy sector is a lack of professional expertise. Therefore, Circutor has taken on the mission to teach energy efficiency and Grid Code in universities. University curriculums suffered during the pandemic, exacerbating the issue that they at times do not teach what the market needs. Circutor’s University Outreach program aims to remedy this issue. We approach universities and institutes through a participation agreement. In the university courses, Circutor will provide real equipment, not laboratory equipment, so that graduates know how to measure as well as analyze, design and finally implement energy solutions.

There are few fiscal incentives for Circutor but the company wishes to drive the program regardless. We want to see more knowledgeable and professional graduates with stronger resumes. Mexico should also be a country of entrepreneurs, not just employees, so we want to support students in building their own businesses.

Q: What are the main vulnerabilities of the National Electricity System (SEN)?

A: In the SEN, there are two main actors: power producers and consumers at load centers. Both have an important responsibility. The power producers, like CFE, have the biggest responsibility, but larger offtakers must also comply. There are also indirect actors in the SEN, like engineering firms that advise load centers, companies offering Grid Code solutions and manufacturers like Circutor. The main reason to comply is to safeguard the SEN’s health, which ensures the grid stays stable and industrial equipment does not get damaged. The problem is how we enforce the Grid Code. Mexico has reached the point where compliance is mandatory and sanctions are becoming viable.

Q: How can these vulnerabilities be addressed, for example with Circutor’s solutions?

A: Renewable energy, particularly intermittent wind and solar power, has been somewhat unfairly highlighted as the reason why the SEN is struggling. These energy sources are important to increase Mexico’s clean energy capacity, however. The best way to strengthen the grid is by making it a more robust network, which could work via microgrids or on island systems when stability issues call for it. Though Circutor is more focused on the user and not on the SEN, it designs and manufactures demand control systems that automatically regulate loads in an industry, regardless of its load size. This supports the grid’s stability and is a small step toward making the network smarter. For example, our electromobility charger control system has smart technology that prevents energy overloads for chargers or the power network.

Q: What are Circutor's main objectives in the Mexican market for 2023?

A: For Circutor, Mexico is crucial. We have obtained a great deal of support from our parent company in Spain so that we can supply our solutions promptly here. Such short notices are essential if companies are to ward off fines for failing to comply with the Grid Code, which could cost companies dearly. Other companies would be wary to invest heavily in the infrastructure to make this happen but it is Circutor’s goal to invest further in warehouses and other infrastructure to cut down delivery times even more. 

Circutor is a Spanish company founded in 1973. The company is present in more than 100 countries, providing solutions focused on improving energy efficiency through metering equipment, electrical energy control, power quality, industrial electrical protection, reactive power compensation and harmonic filtering, smart charging of electric vehicles and renewable energies.