Smart Energy Management: The Key to Maximizing Efficiency

Q: What are ErgoSolar's key focus areas in Mexico's renewable energy sector? 

A: This year, we will focus on energy generation, distributed generation, and abasto aislado (isolated supply). We already have experience with abasto aislado, and we have provided other sectors with energy storage solutions that use lithium-ion batteries controlled by our proprietary solution ErgoEMS. We will also focus on smart energy management, providing grid code services for energy efficiency. What sets us apart is that we develop technology, not just software. 

We have an electronics factory that serves several industries, including energy. We put energy meters on solar installations and they communicate and learn, allowing us to predict when a waste will occur and when there will be a peak. Measuring a week of consumption, we can tell the customer how much their bill will be in four weeks. The technology we develop is tailored to the Mexicanized market and aligns with CFE’s calculation methods. We also operate some startups including Solar E-Motion, which will install solar charging stations across the country. The goal is to solve all the electromobility problems that users have from the moment they purchase an EV. Solar E-Motion will work with Grupo Excelencia, which sells 2% of cars in Mexico, to advance this goal. 

Q: How is ErgoSolar incorporating AI into its energy products and what use will it have in the market? 

A: AI is the core of the system we developed, ErgoEMS (Energy Management System). The technology has many uses. We cross-reference facility’s machinery consumption profiles and usage times with production to allow for better decision-making and boost profitability. These processes allow us to provide more stability to the distribution network, as nobody has invested in energy distribution and transmission in the country, and this will not happen in the next few years. We need to make consumers smarter, using batteries to limit consumption during peak hours. 

Q: What are some major challenges and opportunities in Mexico's solar energy sector, and how is ErgoSolar working to address them? 

A: Among the challenges are the new general administrative provisions (DACG´S) that will soon be published in the Official Gazette of the Federation (DOF). These provisions have been in the works for about a year and a half and they aim to increase the requirements, supervision and control over solar projects. Some see the change as a risk because it could prolong the management times for distributed generation. We see it as an opportunity because small panel installers often do not focus on the quality of processes and do not have certified personnel. Those who do not have processes in place will not be able to interconnect their projects. This change is an opportunity for us because our engineers are already certified for the new (DACG´S) and our solar panels comply with regulations.

Collective generation projects are also likely to grow. The new contract model is designed for buildings such as shopping centers that share a roof, which can host a single solar project that digitally assigns kilowatt-hours to different floors. 

Currently, one of the challenges the incoming authorities will face after the presidential transition is the reinvigoration of these independent agencies. The upcoming administration has the opportunity to make the country more sustainable, efficient, and competitive, given the demands of globalization. Another critical challenge is the need for increased investment in distribution and transmission. Last year, companies within the Mexican Solar Energy Association (ASOLMEX) barely generated 400MW. The new administration has the opportunity to attract investments. The country needs to develop its electrical infrastructure.

Q: Where does Mexico stand in adopting new technologies such as batteries, and how does ErgoSolar contribute to developing them? 

A: Previously, the adoption of new solar technologies and battery storage systems was viewed with some skepticism by the public, due to a lack of familiarity and confidence in these innovations. However, this perception has been changing as people have become more informed about the benefits and performance of solar energy, although a degree of reluctance remains. Additionally, financing was a significant challenge until commercial banks began to offer support in this sector. In this context, ErgoSolar is leading a significant change with the creation of a US$44.8 million fund, of which US$29.9 million will be earmarked specifically for distributed generation and energy storage projects. This fund is expected to be fully operational in the coming months, marking the end of financing as a major obstacle to the advancement of these technologies.

A key challenge in the energy sector is the need for updated regulations, particularly for batteries, given the slowness and obsolescence of the current regulatory processes. Although new battery regulations are expected to be introduced soon, existing facilities still operate without a clear regulatory framework. Addressing this regulatory gap could catalyze significant opportunities for development and growth in the sector.

Q: What role does ErgoSolar expect to play in the Mexican industry, and how do you plan to expand or strengthen its presence?       

A: We are now ranked 10th nationally in terms of installations and kilowatt-hours installed, according to ASOLMEX. We aim to reach the Top 5 within two years. Our plan involves expanding in the Bajio region. We have numerous projects from Queretaro to Sinaloa, and we aim to expand our footprint further. A significant catalyst for this expansion is the investment fund we have been diligently building. We will have funds for financing generation, storage, and electromobility projects in just a few months. This investment fund is unique in Mexico, as it caters to these three sectors simultaneously. 

Q: What characteristics set ErgoSolar’s financing model apart from others in the market?

A: Often, those with money do not know how to construct, operate, design, or sell a solar system, but they need to deploy it as quickly as possible. They need to find engineering, procurement, and construction (EPC) contractors like us. There are many inefficiencies in these relationships, all of which we aim to eliminate with this fund. As the market stands now, one entity finances, another installs, and another operates. We will provide all three processes under one roof, which gives us more control.

Some projects, especially large ones, sometimes involve lengthy approval processes. By having everything in-house, we offer efficiency and the least expensive solar funding in the country. Our vertical integration also facilitates quality control over the processes.

Q: What are ErgoSolar's plans for the near term? 

A: We plan to become a Great Place to Work and expect to have the certification within the next two months. The investment fund will likely allocate US$14.9 million for off-grid supply in addition to the US$29.9 million I mentioned earlier for distributed generation and storage. Our true goal is to help make the country more competitive and cleaner. We have helped our clients avoid CO2 emissions equivalent to what 1 million trees absorb annually, and plan to reach 3 million trees within the next two years. 

In terms of growth, our priority is storage and we have projects for about 20MWh. Ultimately, we believe in integrating technologies: generating power with solar for off-grid supply, distributed generation, large-scale storage, and energy management. All components must work together.

Q: What sets ErgoSolar apart from other companies offering similar services?

A: With 14 years of presence in the market, we distinguish ourselves as the company with the greatest experience and trajectory in the solar sector. We have installed over 1,000 projects for our clients. Four pillars set us apart. The first is profitability, because we do not require an initial investment and our vertical integration makes us more efficient. The second pillar is service. Our management oversees the projects we have installed and takes asset management seriously. The third pillar is safety. We have liability insurance, which instills confidence in our clients. The fourth pillar is sustainability, which encompasses both the environment and social impact. Through initiatives like Energy with a Cause, we install solar panels in nursing homes, orphanages, and schools in marginalized areas. We also collect rainwater in our office. Sustainability is a way of life for us.

ErgoSolar is a Mexican company leading in solar energy generation with experience in the industry since 2010, producing and managing intelligent, profitable, and secure energy. It has installed more than 1,000 projects throughout the country.