Consolidation as ‘Green Enabler’ Comes into ViewBy Cas Biekmann | Thu, 03/25/2021 - 14:12
Q: What has allowed the company to break world records in terms of levelized cost of energy?
A: When Enel first arrived in Mexico, the combination of its solar and wind potential, the liberalization of the electricity market, along with our business model based on sustainability, creating shared value and the circular economy, allowed us to offer cost-effective energy and was key to our growth and investment in the region. The cost of renewable energy in Mexico is one of the most competitive in the world, but for it to directly benefit final consumers, regulation must favor its distribution. Electricity from renewable sources is available only to big companies with large consumption while electricity reaching Mexican households is a mix of other nonrenewable sources with other costs, of which the price is reflected in the consumer’s bill. As more renewable energies enter into this mix, electricity prices will improve for people at home.
Innovation is one of Enel’s core values, so we continually seek to develop disruptive technologies in accordance with present and future needs. Power Purchase Agreements (PPAs) enable the construction of new and bigger renewable plants where the energy is sold to different off-takers, reducing the final energy cost thanks to economies of scale.
Q: What are the characteristics of Enel’s Magdalena II and Villanueva solar plants, and what
are their added benefits?
A: Magdalena II is located in the state of Tlaxcala, a territory with large solar resources. It is the first Enel
Green Power plant built with bifacial solar panels, which allows it to take advantage of between 10 and 15 percent more solar radiation. It has an installed capacity of 220MW. Magdalena II is capable of producing 600GWh per year, which is equivalent to the energy consumption of more than 269,000 Mexican households, avoiding the emission of more than 330,000 tons of CO2 into the atmosphere each year.
Villanueva is located in the state of Coahuila. With 2.5 million solar panels, it is one of the five largest solar plants in the world and the largest in Latin America. Villanueva has an installed capacity of 828MW and avoids the emission of more than 950,000 tons of CO2 per year. It can produce more than 1,700GWh per year and is Enel’s largest photovoltaic plant in the world.
Q: Some of your stated goals are “to consolidate projects in operation and expand the commercial portfolio.” What concrete measures will you implement to achieve these objectives?
A: We see opportunities in new businesses such as green hydrogen, electric mobility, grids, and public lighting. In the long term, once regulation is ready and allows it, we see potential in storage as well. We are also working on new solutions for our clients in terms of sustainability, actions in communities, the circular economy, responsible consumption and communication campaigns. Right now, we are focusing on our current projects and those that are about to start commercial operation. Our goal is to consolidate ourselves as a green enabler for our current and future clients.
Enel Green Power is the renewable energy division of Enel Group, present in 30 countries. Enel Group is a global leader in the green energy sector with a managed capacity of around 40GW, including wind, solar, geothermal, biomass and hydropower.