Iago Crespo
Genesal Energy Mexico
View from the Top

Genesal’s New Rental Line Backs up Power Generation

By Cas Biekmann | Tue, 10/13/2020 - 10:31

Q: How has the company evolved and what sets it apart from its competition in Mexico?

A: Genesal was born in 1994. The company specializes in energy generation products with a specific focus on distributed generation. Genesal Energy Mexico was created in 2014 to focus on special energy generation projects, such as integrating solutions to ensure reliability and quality of power. The Mexican market has been important for the company since 2009, when we launched our operations here. Despite COVID-19 and shifts in government policy, Mexico has massive potential and represents around 15 to 20 percent of the company’s income. We employ almost 15 people in our local team, which can increase depending on the projects we are working on. What sets Genesal apart from its competition is its adaptability, flexibility, commitment to technology, reliability and response time.


Q: How does Genesal help Mexico’s renewable energy producers provide stable and reliable energy?

A: Our equipment is able to cover gaps in energy generation, which is a common issue for renewable energy due to its intermittency. By adding a combustion engine, project developers can benefit from power that covers the gap that renewable energy cannot provide. We have implemented our solutions in many wind farms and solar parks, mainly with our power generation sets for substations for interconnection and raising voltage.

Some examples of our applications for renewable energy projects include Iberdrola’s Cuyoaco solar plant. It is one of the most important photovoltaic projects in Puebla, with 200MW of capacity. The project is important to Genesal because we will not only deliver energy generation equipment for its electrical substations, but also deliver rental equipment. Genesal offers equipment both for sale and for rent. The rental line is one we have been implementing in Mexico for the past two and a half years, offering nonstop energy, support for the work onsite and for special tests.

We also support wind farms in Tamaulipas, which are interconnected to CFE’s national grid through our substation solutions. Our equipment there serves as emergency backup to the substation, with which we can guarantee that the renewable energy that has been generated is supplied to the grid in the right way.


Q: Which project does the company consider to be a main success story in the Mexican market?

A: We have mainly worked in three sectors in Mexico: oil and gas, construction and energy. In the construction industry, we worked on the Coatzacoalcos Underwater Tunnel in 2016-2017. We provided a 2,407KVA medium tension generator, which provided emergency backup to all the systems crucial to the operation of the tunnel, including cameras, pumps and vehicle recognition. In the energy sector, we have implemented many solutions. A recent example would be the emergency power system for Topolobampo III, a crucial combined-cycle power plant from Iberdrola that powers the homes of 2.5 million Mexicans in Sinaloa and Sonora. This project was implemented between 2018 and 2019 and helps to stabilize the grid in that area. In the oil and gas sector, we provided energy to the Hokchi oil field, near Dos Bocas, Tabasco, in 2019. This is a specialized emergency power plant, which backs up all the systems that are involved in crude oil production, from the offshore platform to land-based operations.


Q: How has demand for the company’s backup power generation systems shifted recently due to the pandemic and policy changes in the energy sector?

A: The pandemic has impacted the company and the energy sector in general has taken a hit in 2020. Public sector projects from CFE were also affected, especially renewable energy projects. This is due to both the pandemic and the government’s shift in energy policy, among other factors. The conditions for the energy sector were effectively revamped and players in the sector have needed to analyze the situation.

Genesal has adapted itself well to the new environment. Our clients are mostly in the private sector, even though the final user often is the public sector. The company has been able to continue its work, albeit with adaptations, and has continued to deliver equipment, maintenance services and its rental area. Our plans for investment are still standing.


Q: How has the company adapted to the problems of the pandemic?

A: All of our equipment can be monitored remotely. Not all of our clients need extensive monitoring but we can offer the service regardless. When it comes to our day to day work with staff, we have worked to adapt our approach with them. In April and June, we catered to our clients 24/7 from a remote location. Our factory in Spain had been affected strongly during that period but by taking appropriate sanitary measures and following government recommendations, we were able to continue our production. We followed the same line of thinking in Mexico, adapting to local recommendations. After a long period of home office, we are now returning to the office.


Q: How does the company benefit from its Technological Center of Distributed Energy (CETED)?

A: CETED was created in 2011. It serves as an incubator of ideas for the company. Our philosophy and policies regarding innovation originate from there. It provides a physical and organizational structure. New ideas from clients are sent here and we then turn them into real, tangible solutions. For example, CFE and our clients in Mexico asked us to create a range of products to meet CFE norms. We then turned this into functioning solutions.


Q: What are the company’s goals for 2020-21?

A: We will continue with our investment plans and work in Mexico. Our goal is to open our own rental business using our own equipment. This is a project for the longer term. We plan to invest a considerable amount of resources for a period of seven to 10 years. We are in the early stages after getting the green light but we hope to have our business line available for rent in January 2021. We will also continue to increase our work in maintenance, installations and meeting special requests from our clients.

Genesal Energy offers power generation solutions. The company provides extra value in technical ability related to developing specialist solutions, including viability assessments, detailed planning, execution and on-site commissioning.

Cas Biekmann Cas Biekmann Journalist and Industry Analyst