Adrián Morales
Director General
Grupo MD
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View from the Top

From Tech Provider to Energy Trader

Wed, 02/22/2017 - 14:14

Q: What challenges do Grupo MD’s clients face in terms of energy quality and how does the company help them?

A: In many aspects, the main challenge faced by our clients is the lack of knowledge regarding energy solutions applicability. Even though there is information available, most of our customers are not aware of the technologies and products that can improve their energy usage. A “one-size-fits-all” solution does not exist because energy requirements vary from company to company. A minimal variation can have a great impact on a company’s energy usage, thus enhancing the importance of tailor-made solutions.

The main challenge for us is finding what our clients’ real energy needs are, which we solve by performing an indepth analysis of all the different aspects that could have an impact on energy. The wide range of options we offer to our clients gives us an advantage over companies that focus on one energy source. For instance, PV solar can be suitable for certain industries but it might not be the optimal choice for others. With our portfolio and in-depth analysis, we can provide the best solution.

Q: In which sectors will there be an increasing demand for the company’s products and services and why?

A: Distributed generation definitely is one of the applications for which we expect to see a greater demand. With our solar partner companies we expect an increasing number of solar hybrid projects because this technology is likely to improve a project’s ROI to three years from seven, which will boost its attractiveness.

Another important area in which we see great relevance for our business is the commercialization of energy given our status as an energy trader. We established an alliance with a qualified supplier to work as a bridge between our clients and them, offering an additional option to our customers. We are always looking for options to add to our portfolio. Having a wide portfolio allows us to suit the needs of a variety of industries, giving our company a great competitive advantage.

Q: How will energy trading fit into Grupo MD’s current strategy?

A: We established an alliance with a qualified supplier to become a proper energy trader because we want to provide companies looking to reduce their energy-related costs a better alternative to CFE’s services. We will continue providing our regular services but we want to have the additional option for projects where distributed generation is not a possibility or when companies want to remain connected to the grid.

This year we expect to see this idea come to fruition. We are already in the process of obtaining the relevant permits from CRE. Considering we have access to a wide network of potential clients and we have an alliance with a recognized supplier, we expect this segment to become relevant for our company in the coming years. The electricity market today is not particularly buoyant since it just started under the new terms but it is ready to bloom.

Q: What are the company’s next steps in the short term?

A: We are aligning our operations in other regions of the country, putting the administration of all offices under one matrix. We opened a new facility that includes an engineering area, a sales office, a spare parts warehouse and a workshop. Moreover, the company re-equipped its maintenance department to provide repair services for the equipment we distribute and to maintain ours in optimal condition to be used for rentals. We are also working on strengthening our engineering team to enhance our participation in the new areas into which we are entering. The company is not looking to become a specialist in every aspect of a project. We have worked hard to build up a network of top-level partners to perform those activities in which we are not experts so we can focus on those to which we can bring more added value.