Spanish EPC Providers Stand Tall in MexicoWed, 02/21/2018 - 15:48
Q: What opportunities has the Energy Reform opened for Prodiel?
A: The Reform is offering Prodiel the same opportunities that other international newcomers inserting themselves in the different segments of the liberated market are seeing, backed by the new inflows of foreign and domestic investment from the private sphere. In our particular case, renewable energy is our core business and Latin America is betting strongly on this market. Prodiel’s growth is directly linked to this bet. With a market of 120 million people, we believe we can replicate in Mexico the opportunities and success stories that presented themselves in the rest of the region.
Q: What renewable energy source is the most promising for Mexico?
A: Past auctions revealed important information in that regard. This information can be extrapolated to renewable energy’s tendencies worldwide, which tells us that PV energy is increasingly competitive because it enjoys a favorable technological push and decreased manufacturing costs. In some countries, wind power holds the renewable energy crown. Looking to the future, in the next five to 10 years, renewable energies will oust fossil fuels as the most efficient and cost-effective source of energy globally. Solar and wind power’s position in Mexico is reflected by the numbers obtained in the previous auctions: around 75 percent and 25 percent of awarded projects, respectively. Prodiel offers services for both technologies.
Q: How would you evaluate Mexico’s electric energy distribution and transmission infrastructure?
A: Mexico’s electric energy infrastructure is undergoing a transition toward a new market, opening to local and foreign private investment, enhancing the necessity of an increased network infrastructure. The first jolts of the initial auctions promoted by CENACE are manageable, as they inject the first renewable MW to the grid. A second stage to strengthen infrastructure will be required as projects materialize and future auctions take place. We are confident that the first steps of the renewable energy market will unfold optimally.
Mexico’s energy market is following Latin America’s trend where specific consumption centers are created at different points across the country with all the developing renewable projects. Afterward, the market will reach a stage where distributed generation will have a greater impact, presenting an energy mix between major consumption and distribution centers based on energy demand nationwide.
Q: What major challenges did Prodiel face as a foreign company taking its place in Mexico’s energy market?
A: Our company has very clear objectives. Our 620 strategic plan stipulates reaching €600 million in global turnover by 2020. Each provision is approved by Prodiel’s board of directors and defines primary countries and geographic areas where we want to secure our presence. The first challenge is to launch a meticulous, multidisciplinary and accurate study of the different variables that weigh on our business, such as human resources, the country’s politicaleconomic environment, designing a robust commercial strategy to know which of our clients are already present, obtaining local partners and performing a regulatory analysis, among other fundamental aspects that help us build crucial country knowledge. This work takes over a year to do. All our departments get involved in the targeted country, analyzing all these different aspects to reach a final conclusion and launch the company’s local installation. From there, we make a point of becoming our client’s most competitive partner, highlighting our flexibility and proximity, as a large company with the values that resonate with small companies, offering the solutions they require. This successful approach has translated into 2GW of renewable energy capacity and a solid presence in 10 countries.