Paolo Romanacci
Director General
Enel Green Power Mexico
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Mon, 02/25/2019 - 16:14

Q: What role does Enel Green Power Mexico play in the regional operations of Enel Group?
A: In Latin America, Enel Green Power (EGP) manages renewable energy plants in Mexico, Costa Rica, Guatemala, Panama, Chile, Brazil, Colombia, Uruguay, Peru and Argentina. In Mexico, EGP is the largest renewable energy player in the country in terms of managed capacity with 2,014MW, of which 873MW are derived from wind, around 1,089MW from solar and approximately 53MW from hydro. Mexico represents one of the fastest growing markets in the region and the world. Our projects here include Villanueva, the largest solar park in the Americas, and Amistad, which will be the country’s biggest wind farm when construction is completed.
Q: What features of the Mexican market are attractive to EGP Mexico and what is behind the company’s results?
A: Mexico has become one of the most attractive countries in the world to invest in renewable energy projects. One feature that has marked the country is the operation of the Wholesale Electricity Market, which has allowed industrial players to choose the energy supplier that suits its energy consumption needs under a legal framework that enables regulators to develop this market in an efficient and competitive way. In terms of PPAs, Mexico and the US are the worldwide pioneers, and EGP’s results in this area are remarkable. Our client contracts are uniquely structured, offering a commercial sophistication and a level of personalization that is a great differentiator. We offer access to the best financial conditions and we have the ability to manage complex contracts that involve servicing hundreds of freight centers spread across the country.
Q: What is your strategy to diversify Enel's project portfolio into technologies like geothermal energy and biomass?
A: We believe that wind and solar energy will allow us to move toward a sustainable world and it is in these sources that we want to focus our business. Mexico, for instance, is among the wealthiest countries in terms of resources for producing energy from the wind and sun. According to data from the Ministry of Energy, the country will build 40 solar and 25 wind power plants in the next three years and, of course, we will play an important role in this.
Q: What role does the company play in the hydro power generation segment?
A: Enel Green Power manages hydro plants in Mexico, Costa Rica, Guatemala, Panama, Chile, Brazil, Colombia and Argentina. Thanks to its hundred years of experience in the field of geothermal energy, Enel Green Power is exploring and developing new opportunities in this sector. In Mexico, however, EGP is primarily focused on solar and wind power generation. We manage 52MW of hydro power in the country, through three plants located in Jalisco, Michoacán and Guerrero.
Q: What is EGP doing differently to achieve successful financing for its projects in the country?
A: Enel employs the BSO model, which allows us to capitalize the portfolio of renewable energy projects more quickly, reducing overall risk and accelerating the creation of value. In September 2018, we announced the sale of an 80 percent share in eight wind and solar plants in Mexico with a total capacity of 1.8GW. This strategy allows us to sell participation in our projects, while continuing their operation and management to generate cash and invest in PPAs, as well as to continue developing new projects with the resources obtained from this operation.
Q: How do Enel Energía and EGP Mexico work together to achieve common goals?
A: Renewable power generation and the sale of energy coexist and nourish each other within our two business units. With our qualified supplier, Enel Energía, we are closing different agreements with different commercial and industrial users under the regulatory framework of the Wholesale Electricity Market. For example, our plant Magdalena II, which we just started constructing, is the result of different contracts with these types of customers.