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Everyone Needs Energy at a Fair Price: Bid Energy

Andrea Lozano - BID Energy
Director General


Perla Velasco By Perla Velasco | Journalist and Industry Analyst - Thu, 03/30/2023 - 09:42

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Q: How is BID Energy different from other energy management solutions providers in the market?

A: We were one of the first qualified suppliers to start Wholesale Electricity Market (WEM) operations. Our offer is tailored to the needs of our clients. More than selling, we provide support and educate our clients on the different alternatives for electricity supply at a fair price. We start by carrying out a preliminary consumption analysis to create a product tailored to their load centers and to be able to offer the most profitable price. BID’s additional value is its specialized service: we are not just an electricity supplier; we also take care of the management of our clients’ electricity portfolio, implementing continuous improvements in energy efficiency.


Q: How do you incorporate technology and innovation into your solutions? 

A: Technology is essential for BID Energy’s operations. We take the experience of countries like the US and Colombia, which have markets operating for more than 20 years and have a clear knowledge of the liberalized electricity market’s management. The company works with a software whose developers we supported to adapt to Mexican regulations. Today, 90% of our processes are automated, including suppliers for billing, analytics, operations, and reports, among many other uses. We have also added different tools for price analysis to our technological platform.


Operating at the forefront of technology means constantly evaluating various providers that are creating new developments. We have an app where users can access to their consumption history, billing, profiles, and more. This offers greater visibility into their electrical power management.


Q: How have you adapted to changing regulations?

A: I wish regulation had developed at the same pace as the industry. To have a much more efficient and transparent market, regulation must be improved. There needs to be a clear visibility of where the market is going. In 2017 and 2018, we worked hand in hand with CENACE because we were one of the first companies that complied with the metrics and definitions established in regulatory manuals. It was a great challenge, but we even detected irregularities in the system.


Even though the regulation changes often, opportunities exist. One of our annual KPIs is to always to carry out an exhaustive analysis of regulatory issues.


Q: What are the biggest challenges organizations face in managing their energy? 

A: First and foremost, they face uncertainty. Yet, there is also a need for more knowledge among end users about what energy management is, perhaps due to the lack of explanations. The users receive their receipt, pay for it, and do not question what else is behind it. This is something we, as an industry, need to work on.


Given the history of energy in Mexico, which has had a monopoly for many years, only a few companies have a specialized team to manage their electrical power. This is interesting because electricity consumption represents between 35 and 45% of the fixed costs for many companies. We want our users to see us as their right hand in energy management. Unfortunately, the WEM is too complex and has several knowledge barriers, so even the industrial or commercial companies themselves need clear knowledge about their consumption. Due to a lack of understanding, they might assume that each of their load centers can have the same price; however, this cost depends on many factors. We start with education and analysis for their load centers and then define specialized strategies.


Q: What industries have the greatest potential to start implementing these new energy management solutions?

A: The best-known companies often do not have the highest energy demand. On the other hand, many companies that create specific products are also very energy intensive and could benefit from energy management solutions.


We have clients of all sorts; for example, in the food industry. Since so many sectors need an energy supply, companies in Mexico must begin to press and work hand in hand with the government to establish clearer policies that will lead to competitive electricity costs.


Every company should have well-defined energy efficiency strategies to comply with decarbonization objectives. For example, Tesla needs renewable energy, but so do all its suppliers.


Q: How do you see the evolution of the energy management industry in the next few years?

A: At the international level, different types of technologies and energy sources are on the rise. Distributed generation (DG) is one of the concepts that will grow the most because demand for on-site power continues to increase. Unfortunately, this sector has been constrained somewhat. In Mexico, the electricity demand is rising, and our national electrical system has many operational barriers. In addition, DG is not optimal because it is capped at a maximum of 0.5MW and does not have a defined investment level in the short term to support the grid.


Q: What are BID Energy's plans for future growth?

A: We will continue to promote the industry as we have always done, both individually and through the Mexican Association of Qualified Suppliers (AMSCA), of which I have the honor of being the president. BID Energy will also promote development within a legal and operational framework. We want to contribute to developing a more transparent and prolific WEM and will work hand in hand with other market participants; we are more like allies than competitors.

BID Energy is an energy management solutions provider that helps organizations to reduce their energy costs and optimize their energy use.

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