Tackling Queretaro's Electricity Shortage: AEEQ

Q: What is the main objective of the Energy Agency of Queretaro (AEEQ)?

A: AEEQ was established three years ago with the goal of addressing the country's electricity shortage. Queretaro is a rapidly developing industrial state with high energy demand, with nearly 70% of consumption originating from the industrial sector. Data reveals a 3% growth in energy demand across the country, while Queretaro has experienced nearly 6% growth. This trend has only increased, particularly due to the arrival of data centers. These facilities have substantial energy needs, necessitating an expansion of the infrastructure to support their continued growth. In addition to addressing the electricity shortage, AEEQ aims to influence public policies that promote renewable energy and improve energy efficiency.

Q: What are the main challenges industrial consumers face in the state and how does AEEQ address these issues?

A: The main challenge is that the Federal Electricity Commission (CFE), responsible for operating the national electrical system, has not made the necessary investments to ensure an adequate energy supply for the industrial sector. As a result, there is insufficient infrastructure in CFE’s transmission and distribution networks. To address these issues, AEEQ collaborates with various stakeholders to facilitate processes with federal entities, manages all necessary paperwork, and liaises with the Energy Regulatory Commission (CRE).

We keep in close communication with Queretaro’s Ministry of Economic Development (SEDESU), which serves as the first point of contact for companies interested in establishing operations in the state. Once a company expresses interest, we conduct an in-depth analysis of its existing and forecasted energy needs.

Q: What are AEEQ’s objectives for 2024?

A: We are focusing on addressing the electricity shortage and developing the needed infrastructure, whether through stakeholder collaboration or in coordination with CFE.

As Gov. Mauricio Kuri’s administration enters its third year, it aims to shift the focus toward social initiatives. A significant goal for 2024 is to provide electricity to communities in Queretaro that lack access. Many residents live in dispersed and remote areas, making traditional energy delivery via cables and transformers impractical. As a result, the government is working on using solar panels and batteries to deliver renewable energy to these communities. Many companies, particularly large and reputable businesses that prioritize social responsibility, have expressed interest in participating in this initiative. They want to contribute, whether as manufacturers or installers, to help provide electricity to those communities.

We are also focusing on students. Part of the energy shortage issue stems from improper usage, so we aim to raise awareness among future professionals who will lead the country in the near future. Queretaro has well-organized automotive and energy clusters, which serve as platforms to engage the industry, inform it about our policies, and promote awareness.

Q: What goals has AEEQ established for 2025, and how does it envision the future of renewable energy in Mexico?

A: AEEQ promotes energy independence, which involves generating and managing energy through solutions such as the use of renewable and clean sources like natural gas, ensuring a stable, reliable, safe, and sustainable supply. This way, companies can gain greater control, avoid risks linked to federal government decisions, and achieve greater operational efficiency, reducing costs and improving their competitiveness.

Our goals for 2025 include achieving significant renewable energy generation across the industry, implementing our "Energy at 100" program to ensure electricity provision throughout Queretaro, and promoting energy efficiency. We want to encourage not only the adoption of renewable energy but also the responsible use of energy through cogeneration and established networks.

While we work on developing the electrical infrastructure necessary for renewable energy, it is essential to promote natural gas. While it is not as renewable as other sources, it is a clean energy source. Queretaro faces challenges in adopting more renewable energy projects due to limited land availability and high land costs, which can make solar projects economically challenging. However, we will continue to pursue small-scale solar initiatives as well as natural gas projects to meet immediate energy needs in the short term.

In addition to infrastructure challenges and land limitations, people are hesitant to embrace renewable energies despite the availability of technology. Consequently, it will be crucial to use all available resources effectively, including natural gas, during this transition.

The Energy Agency of Queretaro (AEEQ) is a decentralized entity under the government of Queretaro that focuses on driving sustainable and efficient energy development in the state.