Juan Rojas
Vice President and Partnet
Goldman and Berkeley
Sidney Lebaron
Director General
Goldman and Berkeley
View from the Top

Law, Capital, Energy Projects to Boost Number of Participants

Wed, 02/21/2018 - 16:12

Q: What makes Goldman and Berkeley an indispensable legal ally for Mexico’s energy players?

JR: Goldman and Berkeley is a legal and financial consulting firm with three main business lines. First, market insertion advisory services for foreign companies and their operations. Second, business optimization for companies that already have a footprint in the market. In this area we help generate new business opportunities within Mexico’s wholesale electricity market, as well as in the oil and gas industry. Third, energy trading. Both as our own business line and advising our clients on obtaining better electricity coverage contracts or healthier yields within their energy-trading business. 

Q: What major challenges do your clients face and how does Goldman and Berkeley provide the best solution for them?

JR: Mexico’s Energy Reform is a major structural change, which implies a series of transformations and new market models that the country is not yet accustomed to. These new models are generating an uneasiness that is rooted in the market’s unfamiliarity with them and in the new operations and responsibilities of regulatory authorities. We offer clarity relating to these new dynamics and present optimal ways to generate new business models. Some of our clients are developing solar parks in the northern region of Mexico, for which we specified the most valuable locations to develop this technology and provided a comparative chart of electricity node prices per location, outlined CENACE’s directives concerning the amount of new installed capacity it could allow per node and pointed out the transmission lines available for efficient energy evacuation, among other key elements that enabled an optimal PV system. Our advisory service crafts an integral strategy from all legal, financial and commercial viewpoints so our clients can seamlessly and efficiently integrate these new business models into their own portfolios.   

SL: Many companies that consume electricity do not realize the extent of the implications and opportunities brought about by the reform. Goldman and Berkeley has accumulated a database of companies that consume more than 1MW of electricity per year, which we are helping to register as qualified users and subsequently helping to find new and  better electricity-coverage contracts, focusing on optimal solutions that reduce electricity costs that may translate into better electricity tariffs for the final user. To help our clients capitalize on the new market, we are relying on Big Data solutions to compile the price variations of all electricity nodes nationwide since Jan. 29, 2016. Our clients will have access to these price changes either for a particular node in the last 24 hours or as an overall average. 

Q: What energy project best showcases Goldman and Berkeley’s added value?

SL: We are developing our own ambitious 1GW solar park project, for which we are collecting seed capital and undergoing the technical feasibility studies and permitting process. We already have the land for it, a 4,000ha lot in Chihuahua. The location is strategic in three ways: excellent irradiation levels, proximity to the US border to allow for energy export and the electricity infrastructure available as it is traversed by three transmission lines of 115kV, 230kV and 400kV, respectively. The project will be compartmentalized into 100MW blocks per year. Goldman and Berkeley has a business alliance with companies that have developed energy projects in US and Mexico. The consortium gives us access to an extended network of companies and contacts that are vital to the successful development of such sizable projects.

Q: What service within your portfolio is most in demand at the moment?

JR: Mexico’s wholesale market is burgeoning with activity. Many companies want to enter as qualified users to obtain all the benefits offered by qualified suppliers and a diversified matrix of private power producers. Goldman and Berkeley has been focused from the outset on assisting these companies in getting familiarized with each other, what they offer and how they can thrive under the new market settings.