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Insight

Lucrative Bridges Between Canada and Mexico

Wed, 02/24/2016 - 10:08

About seven years ago, Nova Monarca began implementing renewable energy projects in Canada. “Our partners, Monarch Energy and Sunfire Energy, are the largest solar installers in the country, and we figured if we could do it in the snow, we could do it in Mexico,” asserts Brad Donovan, President of Nova Monarca. The company’s typical installation consists of rooftop systems for commercial facilities, and Donovan is eager to capitalize on Mexico’s natural resources. “If you look at California, there are 2,000 solar farms, but just across the border, there are only two. Therefore, we see the opportunity to help Mexico realize its potential.” He believes Mexico’s solar energy industry has not taken off because the market has only recently been deregulated. Now that the legislation has changed, it is up to the industry to capitalize on this market.

In Donovan’s view, the relationship between Canada and Mexico requires communication because the Canadian press and the Canadian government have misinterpreted Mexico in many ways. One way to promote and protect Mexico’s reputation in Canada, according to Donovan, is by building commercial links. “At Nova Monarca, we believe that the proper implementation of the Energy Reform will lead to community development and mechanisms that will improve the wellbeing of millions of people. It is an exercise in building commercial connections, but the end result should also generate an important cultural exchange,” Donovan expresses.

Donovan believes that many Canadian companies are still largely confused by the Mexican renewable energy industry. That is why Nova Monarca is working with ProMéxico, Bancomext, and other trade associations and agencies in order to provide clarity and understanding, and in order to forge a clear path to project implementation and finance in Mexico. By working through Scotia Bank, Nova Monarca is able to provide extremely inexpensive insurance and warranties to Canadian manufacturers and exporters. “The Canadian banks, like the Mexican banks, are strong, and the more collaboration we can foster between these corresponding institutions, the better,” comments Donovan and adds that this is a key element of Nova Monarca’s mandate.