16
H ighlights strategies. “We experienced snow and a lack of water and electricity in Texas last month. These unprecedented black swan events need to be included in the risk assessment of every new project,” said Méndez. Cruz reaffirmed investors’ interest in the country but also used the oil and gas sector as an example of the variety of responses that private players could have. “A lot depends
on the risk appetite and long-term vision of investors. We will see which companies consolidate in the market and find new niches and which ones pull out.” Amkie also said that Citi’s strategy is yet to be defined depending on the market’s response. “We will have to look at new opportunities depending on how the government renegotiates its contracts with private players and how it sets the new rules of the game.”
MEXICO’S POWER PRODUCERS READY TO SUPPORT ENERGY TRANSITION The paradigm shift in the Mexican energy sector was the main topic of discussion during the fourth panel of Mexico Business Forum 2021 on Wednesday, Mar. 10, entitled “Power Producers’ Priorities.” Experts agreed on several topics including the legal framework, protecting investments, transmission and distribution, the energy transition and new technologies to help drive the sector forward. Moderated by Patricia Tatto, Vice President America of ATA Renewables, the conversation furthermore included Fernando Tovar, CEO and Country Manager of Engie México; Ramón Moreno, CEO of Mitsui & Co. Power Americas; Gerardo Pérez, Vice President and Country Manager of EDF Renewables México and Bruno Riga, Country Manager of Enel Green Power Mexico. Tovar, spearheading the French energy multinational, acknowledged that there is “tremendous uncertainty” in the sector as a result of numerous regulatory changes and measures in recent years. “This poses a risk for existing investments but also for potential new investment,” he said. Because of this, Engie is could make use of the instruments provided by law to protect its investments. “It is even more important to look forward, however,” Tovar said. “Engie is a multinational company that respects the rules of the country where it operates. If the government wants to change those rules, we will adapt to the new situation and look for new opportunities.”
“Renewable energy is not just the future; they are already very much present.” Bruno Riga
Country Manager at Enel Green Power Mexico
In this regard, natural gas storage offer interesting prospects. Both cogeneration and new thermal power generation CFE plants are among the main opportunities, but it is also necessary to strengthen the electricity system. Tovar sees a possibility in a sector where CFE and private players complement each other. “The environment seems to be us or them; CFE against the private sector. I do not subscribe to this way of thinking because there is space for both. There is no conflict between strengthening CFE and having private participation in the market, after all.” “CFE is a crucial player in the energy market and will continue to be so. Private companies need to operate in the space that is granted to them,” agreed Moreno. “We will always try to grow further here and position ourselves where possible,” he said, noting that combined cycle and other large-scale power plants are key to Mexico’s future. Mitsui would also protect its investment through the tools provided by law. The area of power generation and commercialization would remain as important as ever for the Japanese energy giant’s Mexican arm, as distributed energy generation, lower gas prices and digitalization offer interesting new opportunities for the company. “We maintain our commitment to Mexico’s energy transition. This includes public and private consumers, as well as communities throughout the countries. Our projects should benefit Mexican families first and foremost,” said Pérez. He noted that EDF Renewables adapts quickly to changes in the sector but that it has also learned to be patient. “Of course, rules can change but they should not be applied retro-actively,” he pointed out. Furthermore, he noted that the company’s
