Opportunities in Self Generation

Q: How have the recent changes in the regulatory framework in Mexico created opportunities for SEL?

A: With the Energy Reform, more and more companies are either working in Mexico or are looking to expand their businesses into the country from abroad, and that creates opportunities for SEL because we now have a much wider potential customer base. Traditionally, we have served mainly utilities and some industrial companies in Mexico but now several investors are looking at the opportunities afforded by the Energy Reform, particularly within the mining sector, which opens new doors for us. A number of mining companies have now set out plans to generate their own energy, and even to participate in the new market by selling the surplus, and we can offer our expertise and experience to help them through this process. We have been steadily increasing our participation in this segment over the last couple of years.

Q: In what ways can SEL help mining companies make the transition to self-generated power?

A: Mining processes use many electric motors, and we have systems that not only protect people and motors but can also integrate the information from those motors into a single location allowing mine operators to keep track of performance and understand causes of system faults. When a company decides to produce its own power we have applications that can protect its generation station to ensure the generator keeps running, and that it is protected against even the most hard-to-detect failures. We have solutions that integrate all power sources with the loads, and are activated in less than 20 milliseconds when an abnormal condition arises. This keeps the system stable, the generator safe, and ensures the system is continuously in operation.

Q: How do you explain the benefits of your system to mining companies?

A: Some mining companies are more progressive than others, and so the approach to new technology varies significantly. However, we try to find out how many times a certain company has lost power in recent months or years, and to what extent productivity was affected during that period. With those facts we help stakeholders to justify the implementation of our solutions. In terms of ROI, much is dependent on the size and type of system the mine has. However, with many of our remedial systems, after just one problem is prevented the client makes a full ROI. We have a metering solution that allows for internal analysis of energy consumption to understand costs, properly allocate them, and include this as factors into a ROI analysis of new projects.

Q: Which companies represent your target demographic for the mining sector?

A: We serve several larger players in the sector simply because these companies consume more power and therefore have a greater need for our services. We have around 1,000 devices installed at a mine in Sonora, which reveals the complexity of that particular system. Companies with more extensive processes tend to need more advanced and integrated solutions for their operations, whereas smaller companies often require more simplicity.

Q: How do you predict electricity generation within the mining industry will evolve,?

A: There are some companies that see participation in the electricity market as a new revenue stream, while others see it as an opportunity to reduce operating costs through in-house energy generation. The more players enter the electric market, the more pressure on prices there will naturally be. Players are also turning to new generation sources like wind, solar, and others in the renewables sector. Given the increased competition, I would expect to see mining companies and others eventually reevaluating their power generation initiatives. Generation operations will require expertise mining companies may not necessarily have today, which is where I believe that SEL can add significant value.