The Industrial Resilience Shift: Balam Energy

Q: Two years ago, you mentioned that standardized solutions were no longer viable and that success required a case-by-case approach. Under the new regulatory environment and the increased centralization of planning and oversight, how has your approach evolved to adapt to each client’s specific needs?

A: There is greater regulatory certainty. I might have preferred a different structure, but the reality is that we now have clearly defined rules. That clarity alone is extremely valuable. It gives the sector a stable baseline from which projects can move forward.

What we are seeing across the industry is not necessarily enthusiasm, but a more proactive attitude. Companies are once again willing to evaluate and advance projects because they understand the framework in which they must operate. As a result, we are seeing more interest in our advisory services and a higher volume of inquiries. That, in itself, is a positive signal.

At the same time, we are operating in a highly interconnected global environment. Geopolitical developments, particularly those related to the United States, have a direct impact on Mexico’s energy sector. Trade dynamics, the upcoming USMCA review in 2026, and energy policy alignment with the United States will all be critical factors. This means we must remain cautious, informed, and adaptable.

Despite the uncertainty that still exists in certain areas, we are choosing to approach the market with realism and optimism. We believe the sector is entering a phase where informed decision-making and disciplined planning will make a significant difference. From our perspective, we are prepared for what comes next.

Q: How do you guide clients through the centralization of energy planning, particularly when they must meet requirements similar to those imposed on CFE while still managing their own energy strategies?

A: The most important change is that the market is no longer the primary driver of energy development. Today, CFE and PEMEX define the direction, and private actors must align with that reality. Whether one agrees with this model or not, those are the rules, and our role is to help clients operate effectively within them.

We work with clients of all sizes, from SMEs to large industrial players. The strategy depends entirely on the specific case. For smaller projects, particularly those below certain capacity thresholds, regulatory complexity is significantly reduced, which allows for faster execution. This is an area where our size and flexibility as a company allow us to operate efficiently.

For larger industrial clients, the challenges are different. Many are dealing with interruptions, voltage fluctuations, and micro-outages that directly affect production. In response, we are increasingly developing storage-based solutions, particularly battery systems, that provide backup power and help manage peak demand. In industrial regions such as Monterrey, these solutions have become essential, especially for operations that are highly sensitive to even brief disruptions.

Each solution must be adapted to the client’s operational reality, regulatory constraints, and physical conditions. In some cases, solar generation is viable. In others, storage or hybrid systems are more effective. The key is to align technical feasibility with regulatory compliance and economic sense.

Q: Given the slower pace of permitting and the structural constraints of the grid, how do you advise clients in terms of planning timelines and expectations?

A: Patience is critical. Even under ideal conditions, regulatory processes take time. Today, with institutional restructuring still underway, delays are inevitable. We are very transparent with clients about this. In most cases, we advise planning for approximately one year for engineering, procurement, and construction, and an additional year for regulatory approvals at the federal, state, and local levels. These timelines must be integrated into the financial and operational planning of any project.

When the technical execution moves faster than the regulatory process, projects become misaligned. That creates frustration and financial pressure. Our role is to help clients understand that energy projects must be approached with a medium- to long-term perspective. Doing things correctly from the start ultimately saves time and resources.

Q: In this context of grid constraints and limited new generation permits, how attractive have natural gas, solar, and battery storage solutions become?

A: These solutions have become more critical than ever. The question is no longer whether disruptions might occur, but how prepared a company is for when they do. Energy resilience has become a strategic priority.

We take a holistic approach. We analyze the electrical system, fuel supply, equipment efficiency, grid compliance, and operational sensitivity. From there, we help clients compare the cost of production downtime against the investment required for solutions such as storage or backup generation. While the upfront investment may be significant, the long-term benefits in terms of continuity, savings, and risk mitigation are often decisive.

The objective is to act before problems occur. Once an outage or disruption happens, decision-making becomes reactive and far less effective. Proactive planning is always more valuable.

Q: Natural gas has evolved from a transition fuel to becoming a core element of energy security strategies. How do you see its role today within your project portfolio?

A: Natural gas has become a critical input, particularly for SMEs that are not yet ready to fully electrify their operations. We place strong emphasis on risk management, especially through price hedging and supply strategies, given the volatility of gas markets.

We are seeing increased demand for solutions such as compressed natural gas, liquefied natural gas, and virtual pipelines, particularly in regions without access to existing distribution infrastructure. These options allow companies to access gas in a flexible and cost-effective way. Natural gas for vehicle fleets is also growing as a practical alternative to full electrification. While electric fleets remain a long-term goal for many companies, gas offers an immediate reduction in fuel costs and emissions without requiring massive upfront investment.

There is no competition between technologies. The right solution depends entirely on the client’s needs. Our responsibility is to analyze each case objectively and recommend what makes the most sense operationally, economically, and strategically.

Q: In our previous interview, you mentioned green initiatives within the company. How has that area evolved?

A: We continue to invest heavily in sustainable solutions, particularly in biogas and waste-to-energy technologies. Mexico has enormous potential in this area due to the availability of organic waste. We are active members of the National Biogas Council and work closely with experienced international partners who bring decades of expertise.

Our current focus is on projects that convert organic waste into heat and electricity, which can be used directly by industrial clients. In the medium term, our objective is to upgrade biogas to pipeline-quality gas and inject it into the grid. We are developing projects in regions such as Puebla and Campeche, always on a case-by-case basis.

We are also advancing waste-to-energy projects using pyrolysis technology, particularly for single-use plastics and tires. These are proven technologies with a long track record internationally. Beyond energy generation, they contribute to circular economy objectives by giving value to waste streams that would otherwise end up in landfills.

Q: Looking ahead to 2026, what are your main objectives for Balam Energy and your sustainable initiatives?

A: Our goal is to scale these solutions from small to industrial levels, always tailored to the specific waste streams and needs of each client. Financing and carbon credits are essential components of this strategy. We work with specialized partners to structure financing and manage carbon credit certification, which significantly improves project viability.

Today, lack of capital should no longer be a barrier. There are multiple financing mechanisms available, particularly for sustainable projects, including options for local governments. By combining technology, financing, and carbon markets, we can offer comprehensive solutions.

At the same time, we will continue strengthening our core activities in natural gas, regulatory advisory, and energy systems integration. Our vision is holistic. Energy solutions must be technically sound, financially viable, and aligned with regulatory and environmental realities.

Balam Energy is a consultancy for the Mexican energy market that specializes in oil and gas, electricity, and regulatory procedures.