Mexico’s Renewables: Expanding Opportunities and Innovation

Q: Why did Prosolia decide to return to Mexico, and what role are you playing in this new phase?
A: Prosolia had a presence in Mexico some years ago, developing certain projects more as a constructor. Now, the decision was made to return, but this time as a player within energy generation. This is derived from regulatory changes, and from the positive outlook we see for the future of the sector in Mexico. 

Prosolia is betting, and betting strongly, on the Mexican market. My role is precisely about having this clear route. I believe we have very capable people who have already been in the sector for quite some time. We are excited, and now we are at the point where we are already meeting clients, already submitting offers. 

Q: What is Prosolia’s main focus in Mexico in the short term?
A: We are focused about 80% on self-consumption distributed generation projects. In Mexico we are entering PPAs exclusively for distributed self-consumption, while at the same time utility-scale projects are being considered to enter the electricity market in the country. However, our main focus is going to be self-consumption, for now.

Q: What opportunities and challenges do you see in the Mexican market for renewables?

A: The appetite of the market is one of the reasons Prosolia is betting on entering Mexico. There is more and more industry in Mexico, and companies are increasingly demanding better prices. An additional benefit is prioritizing renewable sources. 

There is a great business opportunity in Mexico. And just as there are competitors, when it comes to challenges, I think colleagues in the sector and industry know that regulation is one of the main ones. We are all waiting for the publication of the DACS to finally be able to take these self-consumption projects from 0.7 to 20MW, which would greatly benefit industry. 

Talking about hybrid wind-solar projects in Mexico, one of the challenges is logistics. In Spain and Italy, companies have to deal with a much smaller territory than Mexico. So, all the logistics for installing these projects becomes another important challenge for the industry, and even more so for these hybrid projects. Finally, financial and technical models are another challenge.

Q: Can you tell us about the hybrid wind-solar project in Spain, and whether that model can be replicated in Mexico?
A: The hybrid wind-solar project that Prosolia completed at the Stellantis Zaragoza plant in Spain is a project that was built in different phases: 7MW of capacity, then add another eight, then another nine, then photovoltaic testing, reaching 30MW of capacity. 

We added wind power with one turbine and we are currently in the process of installing three more to reach four turbines in total. Then came the question: how can we help this very large client even more? We started thinking about a storage system, with 15MW of storage. In the end, it is 30MW of solar capacity, about 27MW of wind, and 15MW of battery. It is an impressively integrated project that, together with Stellantis, has been made possible. 

Replicating such a model here in Mexico could be quite interesting for everyone. As far as I know, in Mexico there is not a project of this kind, so it will be interesting for us to evaluate and be pioneers in such a project. Obviously certain conditions must be met: the client must be ideal, there must be available space, and the regulation must allow it. Also, the model must be adapted to the needs of the Mexican market. We cannot compare one market with another. Spain practically has no limit on installed capacity, while here we do. We have the advantage of solar and wind resources in parts of the country where this model could be a complete success, but we must proceed with caution to succeed. In the end, what we are seeking with this project is to have generation 24/7. 

Q: What advantages does Prosolia bring to Mexico from its international experience?

A: One of the important parts is the experience we already have at the international level and the backup we have from the team abroad, which has helped us greatly to open the market here in Mexico. The other important aspect is the team we are forming. We are bringing in experts in their field to offer competitive energy prices, which is what a client is looking for. Efficiency in installations and logistics to minimize the types of setbacks that usually happen in projects. 

Q: Which industries and clients are you prioritizing as Prosolia expands in Mexico?

A: We aim to build strategic alliances at the international level that can bring benefits on this continent. In Mexico, without a doubt, the automotive industry is one of the main players with whom we are establishing alliances. We already have some clients there and we are in talks with them to carry out these types of projects. The food industry is also without a doubt an important part. Any company that consumes a certain amount of energy and has available space is our potential client. 

Q: How are clients in Mexico responding to battery storage solutions?

A: I think now we are at the point where clients are interested in how a storage system works. It is an important opportunity, especially with the hourly tariffs here in Mexico. And yes, without a doubt, it is one of the options we are exploring. We are already in talks with companies that can support us in implementing battery systems, so we can offer clients a solution that is solar with storage, and cautiously, also wind.

Q: Do clients value renewable generation primarily for savings, or are other benefits more important?

A: Normally, in a PPA scheme, you offer energy that generates savings for the client. But as the years have gone by, I have realized that this is becoming an additional benefit. The benefit clients have from generating renewable energy is much greater, since their own suppliers and clients are already demanding these goals. Savings, which at first were the main attraction, are now in my view becoming secondary.

Q: What are Prosolia’s growth targets for Mexico within the company’s global plans?

A: At the global level, we are projecting that Prosolia will have 3GW of renewable generation installed. How much of that will be Mexico’s share? Approximately 10%. So we are talking about 300 to 400MW here in Mexico within five or six years, between self-consumption projects and utility-scale.