Securing Clean Energy Keeps Businesses Competitive: Vive Energía

Q: Vive Energía has played a key role in Mexico’s renewable energy landscape. What have been the company’s most significant milestones in recent years?

A: Founded in 2012, Vive Energía is now in its 13th year of operations. The company’s founders had already developed, financed, and built over 2,000MW of renewable energy projects in Mexico before establishing the company.

One of our major achievements has been the successful development, construction, and operation of over 200MW of renewable energy in Mexico. While we started as project developers, we have expanded into long-term asset management and operations. Today, we not only operate our own wind and solar farms but also manage renewable energy plants for third parties.

Additionally, we have diversified our portfolio by launching with our strategic partners ELEIA México, our energy supply company, and Vive Energía Solar, focused on distributed photovoltaic generation. Our continuous growth has positioned us as a key player in Mexico’s energy sector, now employing over 100 people.

Q: How has Vive Energía adapted to the challenges of the past six years?

A: As a highly active player in Mexico’s electricity market, we identified industry restrictions and adapted accordingly. Recognizing the slowdown in large-scale projects, we focused on areas where we could continue to make an impact.

This led us to establish Vive Energía Solar, expanding into distributed generation, and Vive Energía Suministro which operates under the commercial name of ELEIA Mexico, enabling participation in the wholesale electricity market. We also optimized project operations, offering low-cost and efficient management services, eventually extending this expertise to third-party renewable plants.

Our strong sustainability division, which integrates social and environmental management systems, became a valuable asset as well. Having successfully implemented these frameworks in our own projects, we began providing ESG advisory services to clients, including those outside the energy sector.

Ultimately, the challenges of recent years have driven us to innovate and explore new business lines. This adaptability has strengthened Vive Energía, allowing us to continue growing and contributing to Mexico’s renewable energy landscape.

Q: What are the key technological opportunities developing in the sector, and how does Vive Energía support offtakers in navigating energy market uncertainty?

A: Mexico has a clear need for increased power generation, particularly renewable energy, as well as for significant expansion in transmission capacity. While distribution constraints are less severe, the country faces major challenges in generation and transmission infrastructure.

The growing demand for renewable energy is driven by multiple factors. Many multinational corporations relocating to Mexico as part of the nearshoring trend require clean energy, not only as a cost-effective input but also due to corporate sustainability mandates. Additionally, regulatory frameworks such as the EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes tariffs on products manufactured with high-carbon energy, are further incentivizing businesses to secure renewable power.

However, the current Mexican energy market cannot fully meet this rising demand, as existing renewable generation is already allocated. This creates a significant opportunity for investment in new renewable capacity, a trend that will likely accelerate in the coming years.

Q: How would you assess investment sentiment given the new guidelines supporting CFE in deploying utility-scale projects?

A: The market outlook for Mexico is cautiously optimistic. While recently published regulations provide greater clarity, key details will emerge in the coming months through additional rules and guidelines.

New regulatory frameworks often lead to a temporary slowdown as the market adjusts, but once this transition period settles, we anticipate strong growth in Mexico’s renewable energy sector.

Q: With ongoing grid infrastructure challenges and energy storage gaining traction, is Vive Energía considering investments in battery storage or other technologies?

A: Integrating battery storage into renewable generation is essential for stabilizing variable energy sources like wind and solar. However, the cost of storage must be considered in the final electricity price.

Fortunately, Mexico’s current market conditions, including high energy prices, make storage investments more viable. While adapting to this shift will require time, it does not present a barrier to renewable energy development. On the contrary, it is an opportunity to enhance grid stability while accelerating Mexico’s energy transition.

Q: How would you assess end users’ ability to adopt new technologies and alternative energy solutions? Additionally, how would you gauge their current level of maturity in the market?

A: The market has become significantly more sophisticated. Twenty years ago, the conversation around energy was entirely different. Today, companies outside the energy sector, whether in manufacturing or commerce, have specialized energy teams, recognizing it as a strategic asset that directly impacts their financial performance.

This growing expertise has led to more demanding and creative market dynamics, benefiting the sector overall. It is encouraging to see new players entering the industry, reflecting its expansion and increasing resilience. Moreover, the collaboration between authorities and the private sector has played a crucial role in shaping the current regulatory framework, aligning official discourse with new policies. This progress will undoubtedly drive substantial development in renewable energy during this administration.

Q: What is your strategic roadmap for the next five years, and how do you envision closing 2025?

A: We are advancing a portfolio of wind and solar projects across Mexico, ranging from small-scale initiatives to large industrial developments. Currently, we are evaluating which projects to pursue independently and which to develop through strategic partnerships.

Our priority is to ensure that these projects move beyond the development phase and reach financial closure, construction, and ultimately, operation, just as we have successfully done in the past. I am confident that by the end of this administration, Vive Energía will at least double its generation capacity and triple its operational capacity.

Vive Energía specializes in the assessment, development, financing, commissioning, and operation of renewable energy projects. The company is 100% Mexican, and its directors have been responsible for the implementation of more than 2,000MW in the country.