Self-Consumption, Natural Gas: Navigating the Energy Transition

Q: What changes have you observed this year in the qualified supplier model? What adjustments has Luxem made to remain competitive under this new framework?

A: There has been extensive discussion around regulation. One development that has been particularly positive for the sector is the evolution of self consumption. This is an area that we are actively entering  because our clients began asking how else we could support them in improving and optimizing their overall energy consumption, especially from a cost perspective.

The self-consumption framework now includes mechanisms that allow users to access more competitive pricing while also helping to relieve pressure on the grid. From our perspective, this was a relevant step taken by the government to address grid congestion and enable additional demand.

Another important factor this year has been the call for clean energy projects. Authorities are expected to publish the projects that have been granted permits, some of which have already received notifications. This process reinforces the role of the qualified supplier as the offtaker of clean energy, enabling its delivery to qualified users, especially those with clear sustainability commitments.

Q: At the beginning of 2025, self consumption was widely discussed as a promising opportunity, but still largely conceptual. Entering 2026, are you seeing projects materialize and clients becoming more convinced that this is a viable option?

A: Throughout the year, secondary regulation has continued to be issued, further clarifying the self-consumption framework. Most recently, the government published the latest secondary provisions related to self consumption, known as the DACGs.

These rules make it clear that the government will not allow excess energy to be injected into the grid under self-consumption schemes. The essence of self consumption is to supply the energy needs of the load center or load centers involved. This clarification has helped clients better understand the model and has contributed to greater confidence in moving forward with projects.

Q: In a previous interview you mentioned Luxem’s renewed consideration of natural gas. How do you communicate to clients that natural gas remains part of a broader transition strategy?

A: As we became more active in that segment, it became clear that gas truly is a transition fuel. In addition, it plays a meaningful role in helping industrial clients achieve their operational and energy objectives.

Many clients approached us seeking solutions related to natural gas. However, not all regions of the country have direct access to pipeline infrastructure, particularly at the last mile distribution level. In many cases, gas supply relies on trucked gas or alternative logistics solutions. This has highlighted the importance of last mile infrastructure.

In response, we have focused on offering clients not only commercialization services, but also added value beyond pure supply. Regulation now requires gas marketers to play a more active role in supporting end users. This can take the form of pipeline capacity, distribution infrastructure, or other logistical solutions.

We have worked closely with industrial clients to deliver these solutions, but we have also seen growing interest from generators. This does not refer exclusively to large scale generation projects. For example, some industrial park operators are exploring the installation of gas fired generation plants on site. In these cases, there is a clear opportunity to integrate electricity generation and natural gas infrastructure into a single, coordinated solution.

Another relevant factor has been price behavior. This year, gas prices were relatively stable overall. While there were some seasonal peaks toward November and early December, driven by temperature and demand, volatility remained limited. However, there are projections suggesting that next year could bring greater uncertainty, particularly due to climate related factors, which could result in price increases.

This is where our role becomes especially important. For several years now, we have worked with clients on financial hedging strategies. We have established partnerships with counterparties in the United States to mitigate the risk associated with gas price volatility. Since most gas purchased in Mexico is indexed to US benchmarks, managing this exposure is critical. Our objective is to offer clients price certainty and protection against unexpected fluctuations, translating into more predictable gas invoices.

Q: From your perspective, how are your clients envisioning industrial growth today? What are they telling you about their confidence in continuing their industrial activity, and how do you assess the outlook across the different sectors you serve?

A: We see very different scenarios. One sector that was clearly affected was automotive, particularly due to tariffs and the broader implications that followed. In some cases, we encountered clients who decided to reduce consumption, and this year there were companies that adjusted or scaled back certain production levels.

At the same time, other industries showed the opposite behavior. Sectors such as plastics and bottling experienced growth, driven by sustained or increased demand for specific products. These companies expanded rather than contracted their operations throughout the year.

This is why self consumption will be highly relevant in the coming years, and particularly in the near term. Transmission capacity remains limited, and major projects to relieve congestion are still under development. Self-consumption schemes offer companies a way to continue growing without being constrained by grid limitations, allowing them to create their own solutions while broader infrastructure catches up.

Q: How do certifications and the trading of clean energy certificates contribute to the competitiveness of Mexican players, especially those with exposure to international markets?

A: Environmental commitments remain a core priority, both locally and at the corporate level. This year there was strong demand for international energy certificates such as I-RECs. Many companies need to comply with corporate or customer requirements, and these certificates remain one of the most straightforward ways to demonstrate that part of their energy consumption comes from clean sources.

In Mexico, clean energy certificates also continue to play an important role. Beyond being a regulatory requirement, many companies use them voluntarily to identify and recognize the clean portion of their consumption. We have seen a situation of high demand and limited supply. In the case of clean energy certificates, the previous administration was marked by very few generation permits, particularly for clean energy projects. This administration is showing a very different approach. Regulatory changes are underway, and early next year there will be greater clarity regarding clean energy certificate requirements. At the same time, new clean energy project calls are helping restore supply by providing certainty around the development and operation of these plants.

At Luxem, we have been planning to take this a step further. Looking toward 2026, we aim to develop a more specialized sustainability focus, not limited to certificates alone.

Q: What are your objectives and priorities looking ahead to 2026, particularly in terms of advisory services and continued client support?

A: 2025 was a year of significant challenges. For much of the market, 2025 was a period of speculation about what was coming next. From our perspective, the outlook for qualified users is relatively positive. The market structure remains intact, and there is a clear understanding that industrial users require solutions beyond basic supply. While there are still pending documents and areas for improvement, there has been greater openness from authorities to listen to market participants, which was an important development this year.

Looking ahead to 2026, our strategy includes expanding our portfolio well beyond qualified electricity supply and natural gas commercialization. This includes financial hedging for gas, gas infrastructure solutions, and tools to optimize gas consumption. Sustainability will be a central pillar. Luxem will establish a new legal entity dedicated exclusively to sustainability, covering certificates, advisory services, and emissions trading participation.

Self consumption is another major focus. We aim to act as a strategic partner for our clients by working alongside project developers to deliver integrated solutions. In parallel, we are preparing to expand into distributed generation, battery storage, and gas infrastructure projects.

These initiatives are planned to move forward early in 2026, starting in the first half of the year. Our team has continued to grow in response to these needs, and we have incorporated highly experienced professionals who strengthen our ability to support clients in an increasingly complex energy environment.

Luxem is a Mexican company dedicated to supplying electricity and natural gas to companies. It offers representation services to renewable energy producers in the Wholesale Electricity Market, relying on its knowledge of the Mexican market, combined with the international experience of its strategic partners.