Energy Security Awareness Drives Investment: Finergreen

Q: How has the availability of financing for renewable energy projects evolved in Mexico, given the country’s regulatory and political landscape?

A: There are high expectations for President Claudia Sheinbaum’s administration. Recently, two key documents were released: a plan to strengthen the electricity sector and secondary laws focused on renewables.

Over the past administration, distributed generation grew exponentially due to a supportive legal framework. By the end of the previous administration, installed capacity reached 4GW, attracting both domestic and foreign investment. This trend is expected to continue, potentially reaching 12GW, with a significant share coming from solar and battery energy storage systems (BESS). Regulatory updates, such as increasing the distributed generation limit from 0.5MW to 0.7MW and allowing self-generation for up to 20MW, will further accelerate expansion.

The recently published sector-strengthening plan sets a target of 30GW of new capacity by 2030. Two-thirds will come from combined-cycle and cogeneration projects led by CFE and joint ventures with PEMEX. The remaining capacity will be renewable, including hydro, solar, solar-plus-storage, wind, and geothermal, an area highlighted in the plan as a strategic opportunity. Mexico has strong geothermal potential, and the country has planned expansions at facilities in Cerro Prieto, Baja California.

Q: What types of projects does the company find most interesting, and what makes them stand out to investors?

A: Finergreen established its presence in Mexico in 2022, at the start of the previous administration to serve the Latin American market. We initially focused on supporting distributed generation clients, mainly Mexican companies and EU firms operating in Mexico. This approach allowed us to expand significantly in Chile and Colombia, where we are financing solar-plus-storage projects. We are also supporting hydropower projects in Chile and distributed generation projects in Colombia. 

A key transaction last year was the refinancing and debt structuring for Terra Energy in Mexico, the country's leading residential solar distributed generation provider. Terra Energy plans to expand from 25MW to 45MW over the next two years, and we secured about US$25 million in financing for them.

We continue to work with clients from Mexico and the European Union, advising them on strategic partnerships and financial structuring to support further growth in distributed generation. The market remains highly dynamic, and we see strong investment opportunities ahead.

Q: What makes Finergreen the ideal investment partner, and how does it help companies navigate complex environments?

A: Finergreen is a specialized boutique investment bank that focuses on renewable energy, with offices across five continents. We are consistently ranked among the top three global advisory firms for debt structuring, including corporate debt, project finance, acquisition financing, and M&A transactions.

We have a strong global presence in the middle market segment, working with companies valued between US$10 million and US$150 million. In Mexico, we have successfully replicated this strategy, supporting both domestic and international clients in their development efforts.

With the growing relevance of nearshoring, we see increasing opportunities to integrate distributed generation and solar-plus-storage solutions into industrial operations. This evolving landscape presents significant investment potential, and we are well-positioned to facilitate strategic partnerships and financing solutions.

Q: What key actions does Mexico need to take to stay competitive and capitalize on incoming technologies while navigating regulatory changes?

A: Energy security is crucial for development and poverty reduction, and there is a growing awareness of this across various sectors in Mexico. Nearshoring has highlighted the importance of energy security, which the government now recognizes as a priority. Mexico’s focus on clean energy is setting it apart from other Latin American countries. The transition to clean energy has become integral to both public and private sectors, and the government’s energy-focused approach, supported by the president's background in climate change policy, is encouraging.

Finergreen is a boutique investment bank dedicated to the energy transition. It has in-depth expertise in M&A and complex financing thanks to over 10 years of experience. With more than 100 people based in 12 offices all over the world, including Mexico,  the company executes an average of over 30 transactions per year.