Innovating Technologies for a Sustainable, Reliable Grid: Prolec

Q: How is Prolec addressing the challenges of aging infrastructure in Mexico, and what innovative solutions are being implemented to modernize the grid?

A: The growing demand for electricity is closely tied to economic development, both globally and within North America. Addressing infrastructure challenges goes beyond launching new products or incorporating innovations—it requires active engagement with industry stakeholders.

We work closely with the National Chamber of Electrical Manufacturers and other associations to stay aligned with government plans, including the recently announced infrastructure initiatives. In Mexico, as in many other countries, modernization efforts are lagging, requiring not only increased generation capacity but also the renewal of aging assets.

To support this, we continuously invest in technological development initiatives to ensure our products remain at the forefront of industry standards. Our focus is not just on compliance but also on adding value through advanced monitoring solutions, such as sensors and analytics that provide real-time data on transformer performance. These developments enhance reliability and efficiency, particularly for key clients like CFE, while keeping us ahead of market trends.

Q: Given the challenges in energy efficiency and grid code adoption in Mexico, what are the main concerns your clients bring to you regarding energy reliability, and how does this impact investment feasibility in Mexico?

A: Ensuring a stable and reliable energy supply is a key concern for industrial clients, as well as for manufacturers like us. Our leadership position in both Mexico and the United States allows us to anticipate industry needs, not only in manufacturing capacity but also in technological developments for the electrical grid transformation.

One of our key recommendations has been the need for better long-term planning to provide visibility into future infrastructure needs. While we actively collaborate with industry and the government, demand fluctuations create uncertainty. A structured, long-term strategy would benefit the entire sector, allowing manufacturers and suppliers throughout the value chain to align their production and innovation efforts accordingly.

Q: In 2023, the company announced an US$85 million investment to meet the growing North American demand for single-phase pad-mount transformers. What have been the main results of this investment? How would you assess investment sentiment in the Mexican market?

A: This investment is focused on the residential market. While Mexico primarily uses pole-mounted transformers, the growing trend in the United States, likely to be adopted in Mexico, is underground connections, which offer not only aesthetic benefits but also greater resilience against extreme weather conditions such as hurricanes and severe heat or cold.

Reliable electrical infrastructure is not a luxury—it is a necessity. The 2021 winter storm in Texas, which left many without power for days, highlighted how essential electricity has become to daily life. Our investment strategy is guided by market trends, ensuring that we anticipate and adapt to evolving needs. 

With manufacturing facilities in Brazil, Mexico, and the United States, we are positioning ourselves as a leader in the generation, transmission and distribution segments alongside top market players.

Q: How do you evaluate the nearshoring trend, considering the challenges in energy infrastructure and Mexico’s current industrial capacity?

A: Nearshoring is a global phenomenon, with regional clusters emerging in Asia, Europe, and North America. In our case, the North American market is particularly attractive, given Mexico’s proximity to the United States, one of the world's strongest economies. This presents a significant opportunity that we must capitalize on.

However, for nearshoring to reach its full potential, it must be supported by robust infrastructure, including reliable electricity supply. While Mexico has a skilled workforce and a strong industrial base, continuous investment in education and technology development is essential. Talent must be equipped with the skills needed to integrate new technologies into manufacturing and business operations to remain competitive.

Beyond electricity, infrastructure must be viewed holistically. Water availability, for example, is another critical factor. In Nuevo Leon, for instance, reliable electricity was necessary to power water pumps supplying cities. Addressing these challenges comprehensively will be key to sustaining Mexico’s industrial growth, and it is encouraging to see the country’s leadership recognizing and prioritizing these issues.

Q: What specific technologies has Prolec developed to address current energy challenges?

A: We prioritize sustainability. Our approach goes beyond incorporating advanced technologies into our products. We are committed to responsible manufacturing that minimizes environmental impact and benefits the communities where we operate. We have set clear sustainability goals for 2030, including reducing our carbon footprint, optimizing energy consumption, increasing the use of renewable energy, and improving water management to ensure its responsible return to the environment.

In terms of technology and innovation, we have a long history of investment in R&D. We actively participate in industry forums and regulatory committees in both Mexico and the United States, staying closely aligned with market trends and customer needs.

In the renewable energy sector, we are leaders in solutions for solar, wind, and, more recently, energy storage. Our products are specifically designed to support new energy technologies, adapting to different voltages, direct current systems, and the unique challenges of modern power electronics.

In Mexico, we have contributed to solar and wind projects and explored high-voltage direct current transmission, although such initiatives have been put on hold. Our expertise allows us to tailor solutions to emerging technological trends and industry requirements.

One notable innovation is our use of biodegradable, high temperature-resistant insulating fluids. Developed in collaboration with a Mexican vegetable oil producer, this soy-based, 100% biodegradable fluid is environmentally-friendly and significantly enhances transformer performance. It extends transformer lifespan, improves insulation durability, and features a high ignition point, making it safer in fire-prone areas. This technology is particularly beneficial for installations near water sources, forests, or sensitive ecosystems, aligning with our commitment to sustainability and reliability in energy infrastructure.

Q: What are Prolec’s objectives for 2025, and which projects are you most excited about this year?

A: In 2025, our focus remains on technological innovation and strengthening our market leadership, particularly in North America, where demand continues to rise. We are making significant investments to expand capacity and anticipate industry needs.

A key priority is advancing digital communication and data acquisition technologies for transformers and power grids. By enhancing remote monitoring and data analytics, we improve operational efficiency, grid stability, and asset management, ultimately extending transformer lifespan and optimizing energy distribution.

Given fluctuating demand patterns, such as peak energy consumption from electric vehicle charging or increased household consumption during extreme weather, real-time data allows utilities like CFE to make informed decisions and prevent excessive demand stress on infrastructure.

Beyond production, we are also reinforcing our supply chain and technical capabilities. Close collaboration with customers helps us align with long-term projections and ensures we meet commitments with the necessary resources, expertise, and workforce.

This year, we are launching new production lines, including single-phase pad mounted transformers and renewable energy transformer solutions in the United States. We are also expanding manufacturing capacity with a third production line to support growing demand in North America. Maximizing these new capabilities will be a central focus for the year ahead.

Prolec, headquartered in Monterrey, Mexico, is a leader in designing, manufacturing, and selling products and solutions for the generation, transmission, and distribution of electrical energy.