Alejandro Blanco Moreno, TradeOn Energy
View from the Top
Alejandro Blanco-Moreno
Co-Founder
TradeOn Energy
TradeOn Energy's cofounder explains the company's efforts to add liquidity to Mexico's still budding electricity market.
Alejandro Blanco-Moreno
Insight
Alejandro Blanco-Moreno
Co-Founder
Tradeon Energy
With a soaring number of players, diversified product and service options and competitive prices, the ingredients are in place for a successful…
Alan Sakar
Roundtable
Alan Sakar
Alan Sakar
Associate in Project Development and Finance
Clifford Chance

In the first and second auctions, CFE was the sole purchaser and virtually absorbed a measurable off-taker’s risk. Starting with the third auction, the Clearing House will represent a pool of purchasers per auction. Clifford Chance applauds the authorities’ design efforts when structuring the electricity auctions. We understand that some banks were involved in the structuring of the Clearing House, which is a strong sign that the government took into consideration certain bankability issues, which the banks would likely raise during the financing of the projects. We have no doubt this model will be replicated in other countries in the coming years. The success of the upcoming auctions will be largely based on the independent performance of CENACE, which will manage the risk of buyers’ nonpayment, the guarantees and the reserve funds.

Unlocking a country’s entire electricity sector to private initiative is not something done overnight.
Óscar Bernal
Roundtable
Óscar Bernal
Óscar Bernal
Director General Mexico
Eosol Energy

Due to the regulations for CEL requirements from the beginning of 2018, CFE needs to acquire a large amount of CELs to compensate for the energy it still produces using fossil fuels. The CELs are expected to attract tremendous demand when they become available so everyone believes CEL prices will increase dramatically. Eosol’s strategy formed almost in response to the auctions due to the absence of private projects. With our full-equity advantage, clients started knocking on our door. In the last 10 months, we have received more renewable energy development projects than in the six years since our company was established.

The country’s regulatory authorities responded to this necessity with the design of a secondary energy trading market: CELs.
Salvador Alarcón
View from the Top
Salvador Alarcón
Founding Partner and CEO
Tradeon Energy
Tradeon Energy explains its role in creating and developing the Mexican electricity market.
Energy Market
Analysis
Mexico’s energy authorities have gone to great lengths to foster an open electricity market that is enticing enough to attract the private sector.
Salvador Alarcón
View from the Top
Salvador Alarcón
Founding Partner
Tradeon Energy
Trade On is an energy broker with over 50 years of experience in the global electricity market, covering trading, legal counseling and consulting.
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