Transmission Hurdles Should Be Faced Collaboratively: Luxem

Q: How would you describe Luxem’s role in promoting the use of renewable energy in Mexico?

A: Luxem, as a qualified supplier, has worked with different clients and providers looking at the topic of renewable and clean energies, supporting its clients through certifications or by establishing relationships with solar and wind energy generators. The company was born from a joint venture between GEMEX, which has more than 15 years of experience in the market and wind parks in Tamaulipas, and Factor Energía, which is focused on supply and expanding the installation of solar panels in the residential sector. 

Q: What advice do you have for businesses and individuals looking to become more energy efficient and reduce their environmental impact?

A: Energy consumers should be more open to using different sources of energy and understand that not everything is supplied by CFE. There are alternatives. Companies like Luxem can provide economic and sustainable benefits. Consumers need to inform themselves about clean sources of energy and we can provide them that information as well. 

Q: What are some of the biggest challenges facing the energy sector in Mexico today?

A: It is no secret that there is a lack of investment in transmission networks in the country. No major transmission projects have been undertaken but I think these are necessary. Many of our clients complain about reliability issues and the quality of energy. Not having energy can cost them a great deal. Luxem believes transmission is a priority and it is a challenge we must face together, as a sector.

Regarding generation, the country needs more projects in the short term, especially considering the nearshoring issue. Obviously, Mexico is a country that increasingly is growing and is calling for investment to align with international standards. 

Q: How does Luxem stay up to date with new technologies and trends in the energy industry?

A: We have a specific area that is looking at new trends, including artificial intelligence and how to leverage these tools. One of the operational issues for customers is their energy consumption and how they can manage it more efficiently. That is one area in which Luxem offers a solution. As suppliers, we cannot have our own power plants for renewable energy. Instead, we act as intermediaries between the end-user and the generator. We work hand in hand with good partners who can help us and enable us to deliver the best possible service to end-users.

Q: What is your strategy to handle the expected increase in energy demand? 

A: This is quite a complex issue due to lack of generation permits. Those that have been granted already have the capacity allocated with a specific demand. We have signed contracts with certain solar generators, mainly for distributed generation and exempt generation. The company wants to build alliances so we can offer customers both savings and sustainability. It is about collaborating to ensure the sector’s growth. In the end, all participants must contribute to keep the sector moving and the market functioning.

Q: What are the company’s plans and goals for 2023?

A: The main goal is to increase our number of clients. I think we are on the right track; we have closed some contracts with quite important companies in the country. We want to contribute to make the country better in terms of its energy supply. The goal is to grow as a qualified supplier and to offer companies an added value, apart from savings. Renewable generation is also part of our plans for this year and the next.

Luxem Servicios Calificados is a subsidiary of Luxem Energía, a company dedicated to supplying electricity and natural gas to companies. It offers representation services to renewable energy producers in the Wholesale Electricity Market, relying on its knowledge of the Mexican market, combined with the international experience of its strategic partners.