Isolated Self-Consumption, Storage: An Energy Deficit Solution

In the face of Mexico’s ongoing energy deficit and rising electricity costs, a solution is emerging that promises to offer immediate relief: isolated self-consumption and energy storage. This can help businesses to better manage their energy consumption, controlling costs and improving energy resilience.

As nearshoring continues to gain momentum in Mexico, many industrial consumers face significant challenges in scaling their operations efficiently. Mario Benitez, Wholesale Energy Director, Quartux, highlights that "when an industrial consumer already has a plant or is planning to set one up, they will undoubtedly face two challenges: electricity infrastructure and compliance with all the necessary regulations." These obstacles are particularly important in the context of the nearshoring trend, where businesses are increasingly relocating manufacturing processes closer to North America.

In the context of Mexico's evolving energy landscape and the growth of nearshoring, businesses are increasingly confronted with the limitations of existing infrastructure. Benitez points out the critical needs companies face, stating that "the capacity of the electricity infrastructure is limited: substation overloads are common in industrial parks and the reliability of the supply is compromised." These challenges are especially evident as companies scale up operations to meet the demands of the nearshoring trend. Beyond addressing these infrastructure issues, businesses also bear significant responsibilities in ensuring a sustainable and reliable energy future.

Companies must "advance toward decarbonization through sustainable solutions," states Benitez, while also "guaranteeing security and reliability in the electrical supply and optimizing costs to achieve greater competitiveness and profitability." The new regulatory environment and the rise of isolated self-consumption and storage systems provides a viable path forward, helping companies balance these critical needs and responsibilities while positioning themselves for long-term success.

One of the key points Benitez raises is the rising cost of electricity during peak hours, typically in the evening, when consumption spikes. These peak hours represent a significant portion of energy expenses for businesses, with costs climbing to 30-40% of a company's total energy bill. As Mexico continues to rely on traditional energy sources, the pricing during these high-demand periods remains volatile. This leaves businesses vulnerable to unpredictable cost surges that can significantly affect their bottom lines. “With new regulations providing clearer guidelines, the implementation of isolated self-consumption and storage systems offers a potential solution to these challenges, enabling businesses to not only reduce energy costs but also comply with regulations while enhancing sustainability efforts,” shares Benitez.

The adoption of isolated self-consumption, along with energy storage systems, presents a clear solution to this issue, adds Benitez. Isolated self-consumption allows businesses to generate their own electricity, reducing reliance on the national grid during peak times. By generating energy from renewable sources, such as solar or wind, businesses can tap into clean energy without being subjected to fluctuating grid prices. Energy storage systems further support this model by storing excess energy generated during low-demand periods, which can then be used to cover peak-hour consumption. This not only reduces costs but also stabilizes energy supply, ensuring that businesses can maintain operations without disruption.

The recent regulatory changes in Mexico have made these solutions more feasible than ever. Benitez pointed out that prior to these changes, one of the main barriers to implementing energy storage systems was the lack of clarity in the rules and financing models. However, with updated regulations, the framework for distributed generation and energy storage has become more straightforward, enabling businesses to adopt these technologies with greater ease. Furthermore, regulatory shifts have made financing more accessible, providing companies with the support needed to invest in renewable energy systems and storage infrastructure. The clarity in regulations has also addressed the challenges that companies faced when trying to navigate the complex energy landscape, offering them the opportunity to adopt more sustainable practices without facing significant hurdles.

Benitez emphasizes that the energy storage market is poised for growth, especially given the dramatic decrease in battery prices. As storage solutions become more affordable, businesses are increasingly able to incorporate these systems into their operations, leading to greater energy independence and cost savings.