Solar, Geothermal ... What Is Next?

Q: What are TSK’s main activities in the Mexican energy market?
A: TSK is an EPC that is headquartered in Spain, although 98 percent of its total operations are outside Spain. Our portfolio encompasses various energy industry segments, such as oil and gas infrastructure, water and waste-management plants and material handling amongst others, but our main activity lies in power generation plants, which represent more than 50 percent of our total annual billing. Globally, we have operated in more than 50 countries. About 10 years ago, we identified Mexico as a priority market as part of our internationalization strategy and decided to enter the market. In other countries, our established business model is to develop a project and then leave once it is completed. In Mexico, we have a permanent structure, with sales and logistics departments that support our constant business development.
Q: What added value does TSK offer to the national energy industry?
A: This is a family-owned company. The family also participates on the management side, which shows that our human capital is really committed to TSK’s mission. Additionally, a percentage of the company’s utilities has been reinvested to maintain a healthy equity balance, which is why we manage to secure the necessary financing of our projects. In the power generation segment, we are known for working with various technologies, such as solar PV, thermo solar, biomass, wind, geothermal and simple and combined cycles. We also have integrated companies that can provide additional know-how to our technologies and complement our offer. For instance, we acquired the German company Flagsol that develops cylinder parabolic thermo solar collectors. This let us grow in that area and today we are one of the major references for this technology. Similar acquisitions that provide substantial benefits include PHB Weserhütte, Ingeteam and former Intecsa Oil & Gas, which today is TSK Oil & Gas. Finally, we have been working in the Mexican market since 2012, when we connected our first plant. As a result, we have good relationships with local contractors and providers.
Q: What has been your role in the development of renewable energy projects in the region?
A: We are constructing the second phase of the Azufres III geothermal plant which was awarded in a public tender published by CFE at the end of 2015. Due to its novelty and complexity, not many developers participated in the bidding process. As we developed a similar project in the Philippines, TSK was greatly interested in the plant, although mostly in working hand in hand with CFE. The productive enterprise of the state has high-quality standards and really good human capital resources. It was a complicated project in many aspects but the most challenging part was the geotechnical studies, as a mistake in this area can lead to a huge operational failure. We dedicated all the company’s resources to the completion of this project, which was connected at the beginning of 2019. Regarding solar PV, we have various developments in the state of Durango. We began the construction of TAI I in 2013, TAI II, III IV and V in 2015 and in 1Q18, we started the development of Tai Durango VI, Trinidad Solar I and Trinidad Solar II. Together, these will provide 176MW of installed capacity in the region.
Q: What are the two main goals the company aims to achieve by the end of 2019?
A: In terms of revenues in Mexico, we closed 2018 with US$350 million and, ideally, by the end of 2019 we will get this figure to US$500 million. We have been active in the solar PV sector and we believe there are more opportunities coming regarding utility-scale projects. At the moment, we are building a 340MW plant in San Luis Potosi for one of the winners of the second long-term electricity auction. TSK has collaborated in the development of wind energy projects globally but not in Mexico yet. Part of our strategy for 2019 is to start executing wind energy projects here. We also expect to gain more participation in the construction of cogeneration and combined cycle plants, which are very much in demand.