Navigating Choice, Risk in Mexico’s Energy SectorBy Cas Biekmann | Mon, 03/01/2021 - 12:34
Edison Energy helps large corporate, industrial, and institutional clients better understand and navigate the choices and risks of managing energy. They are a global team of innovative energy experts, having advised on over 6GW of renewable energy deals, optimized over 600M square feet of facilities through energy efficiency efforts, and managed over US$5billion in energy spend for their clients – 15 of whom are among the Fortune 50. Through an integrated portfolio approach, they enable decision-makers in organizations to deliver on their strategic, financial and sustainability goals. Providing a suite of specialized services across sustainability, analytics, renewables, supply, demand, and efficiency, Edison Energy works with clients to help them address the three biggest challenges in energy today: cost, carbon and complex choices.
Edison’s global Supply Advisory practice has been operating since 1997, partnering with some of the world’s largest energy users to strategically procure and manage natural gas, traditional power, renewable energy and various other commodities. Using a client-centric approach to deliver quantifiable value, their team of energy experts helps clients establish customized strategic energy procurement plans, identify opportunities, manage risks, and develop solutions that best meet our clients’ objectives. Edison’s Mexican team, headquartered in Mexico City, averages over 15 years’ experience in the energy sector and has worked for manufacturers, regulatory agencies, utilities, suppliers, and law firms. They are hyper-focused on generating the best outcomes for clients and customizing services to meet each client’s organizational goals.
Advising and partnering with their clients in Mexico, three of which rank in the Fortune 100, through various energy challenges and opportunities, Edison Energy has successfully supported them in achieving their goals, including but not limited to becoming Qualified Users, selecting on-site solar projects, entering off-site PPAs with wind developers, obtaining clean energy certificates, and negotiating natural gas capacity and supply agreements.
In early 2021, Edison Energy announced the addition of Sean McCoy-Cador to their team. He will be leading Mexican operations, putting his energy experience to work for clients. Sean is a clean energy regulatory expert and developer with over 20 years in the power industry. He specializes in business development, regulatory affairs, project finance, real estate, and international transactions. He has drafted, negotiated and executed several PPAs, including successfully advising two out of seven winning companies in the first power auctions carried out in Mexico.
“I am excited to join the Edison Energy team as it continues to serve the evolving market in Mexico,” McCoy said. “At Edison Energy, our greatest strength is our people. By providing a human approach to today’s complex energy challenges, we uniquely empower organizations to transform their greatest energy challenges into their competitive advantage,” he added.
McCoy-Cador is a former Member of the Board of Directors of the Mexican PV Solar Energy Association and a former member of the First Advisory Board for the Mexican Energy Regulatory Commission (CRE). In addition to his role, Director Energy Services Mexico, he is a lecturer at the Diplomado en Derecho Energético at the Escuela Libre de Derecho.
Navigating the Mexican energy sector has never been more difficult than nowadays. In the Mexican electricity industry, the rule of the game was that the least expensive electricity to be used first and the most expensive power last. Those rules have favored less expensive new renewable energy, generally from private generators, over many CFE’s older, more expensive plants running on hydro, natural gas, nuclear, fuel oil, and coal. However, recently, the Mexican Congress approved the bill introduced by President Andres Manuel López Obrador, which aims to protect CFE’s interest by changing the dispatch order; CFE’s power plants will be dispatched first regardless of the costs. Such changes will inevitably modify the power rates in Mexico.
Edison Energy helps their clients evaluate potential regulatory outcomes of these legal, market, and political uncertainties while also working with the most reliable, cost-effective suppliers and make sure their clients enter contracts with the best possible business terms offering the most protection in these circumstances.