Powering Progress: Energy Priorities of Industrial Offtakers

In the ever-changing landscape of Mexico's energy sector, industrial offtakers find themselves at the intersection of priorities and challenges. As they strive to navigate this dynamic environment, understanding key considerations such as price, reliability, quality, availability, and sustainability becomes crucial. 

"There are no prepared spaces to supply the energy required by the new foreign companies, which is becoming an increasingly important priority for clients,” says Ruth Corona, Director, Energy & Sustainability Services, JLL Mexico. Before their implementation, there is a need to raise ESG standards to international levels to address the requirements of foreign companies. Access to renewable energy becomes more important as Mexico becomes more relevant in the global economy. 

Cost efficiency, coupled with availability, is an important consideration of businesses when sourcing renewable energy. “Renewable energy is not against profitability,” says José Francisco Martínez, Deputy Director, Utilities Walmart. “It is now more affordable than in recent years. This affordability has reached a point where it is economically viable to integrate renewable solutions even in small stores located in remote areas; it may not cover the entirety of their energy needs but can cover a substantial portion.” 

However, due to the nature of renewable sources, their availability may fluctuate, warns Susana Cárdenas, Country Manager, Energyby5. The reliability and stability of renewable resources may also vary, depending on location and the nature of the resources. “These are variables that clients need to be aware of when buying cleaner energy; if you want to invest in these sectors, clients need to be aware that there are more risks and more volatility,” says Cárdenas.

To mitigate these concerns, some businesses are implementing a mix of energy resources to ensure a stable energy source. “It is important to talk about the exploration of alternative sources, such as biodiesel,” says Yazmin López, Energy and Environment Manager, Iconn. “This prompts a consideration of the appropriate blend to ensure seamless use without complications in engines or boilers.” 

Another “stopper” is the dependence on the specific energy network, says López. The complexity of implementing distributed generation and the careful consideration required for sustainable and efficient energy solutions needs to be taken into account by clients who look for renewable energy. 

Previously driven by cost reduction, there is now a significant shift towards net-zero initiatives. However, users should develop a comprehensive strategy before embarking on net-zero consumption. “But the clients are not the only ones who need to chip in; we need the government and regulatory institution’s support because without them, the renewable energy industry in Mexico will continue to lag,” says Corona.