Energy Trading for EveryoneWed, 02/21/2018 - 12:54
As the Mexican market opens, new business opportunities unfold. Energy consumers want fast and to-the-point answers to their energy requirements, and generators prefer to sell all their energy to one entity instead of dealing with a portfolio of customers, creating the need for a middleman that deals with these demands. Enter the qualified suppliers, whose added value could help determine their success.
The need for qualified suppliers is visible in the number of companies that have entered the market under that business scheme. While on Dec. 31, 2016, six companies had signed contracts with CRE to enter into that modality, by Oct. 10, 2017, there were 23 companies, with five already operating in the Mexican wholesale electricity market.
In such a competitive environment, companies need to clearly show their competitive advantage to potential clients. Juan Guichard, CEO of Ammper Energía, which offers qualified supply services to the industrial and commercial sectors, says the company delivers its clients a threefold advantage. “The first is flexibility. Ammper Energía understands and fully satisfies its clients’ needs by offering the best contract according to the client’s needs. The second is transparency. All our offers are detailed, point by point, and we clearly explain them to our clients. We do not worry that the client might compare our full offer with that from another supplier. Finally, Ammper Energía knows energy is a commodity. As such, we know that there are many other offers in the market to which our offer will be compared, and we are not afraid of that.”
A portfolio of energy generators is vital for a qualified supplier, as the electricity produced is the commodity it offers to its customers, Guichard says. As Mexican law will require that every consumer gets a minimum of 5 percent of the energy it consumes through CELs, renewable generators are a great asset for a qualified supplier. By law, 13.9 percent of the energy consumed must come from CELs by 2022, highlighting the competitive advantage that qualified suppliers will have by integrating renewables into their portfolio. Ammper Energía’s strong focus on renewables makes it a solid competitor, Guichard says. “We have a strong focus on renewable electricity. Ammper has over 800MW of renewable generation developments.”
With INVEX Infraestructura and InfraRed Capital Partners as parent companies, Guichard highlights the expertise both companies offer to Ammper Energía. “The support these companies have provided us as a growing organization is invaluable, offering the kind of institutional and financial expertise that would take most companies years to develop.” Guichard also makes sure that Ammper Energía walks the extra mile with in-depth market and business research and close monitoring of the Mexican market, ensuring that the company always has the best possible supply strategy for each of its clients.
Following the necessity of offering the best service available, Ammper Energía decided in June 2017 to select Power Costs as provider for its energy trading and risks administration platform. The selection of this leading software platform provider is expected to give Ammper Energía the ability to keep offering robust, personalized and affordable solutions to its clients, explains Guichard.
Ammper Energía also noticed the lack of awareness of power producers regarding new market opportunities. Before, generators needed just to worry about producing energy, as all of the energy was sent to CFE. Now, it is better for generators to have a team that efficiently communicates with the market and offers energy to different qualified suppliers. As not all generators are able to do so, Ammper Generación was established to help them venture into these new areas, Guichard says. “Ammper Generación consists of energy operations experts who can represent and take care of the energy sales activities of generators in the market. Ammper Generación sells the energy from the generator without the generator having to gather, train and invest in forming its own energy operations team and systems.” Guichard is confident of the added-value that Ammper Generación can offer its customers. “Ammper Generación offers a cost-competitive alternative, while providing the service through a system platform exclusively developed for the Mexican market.”