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created by paper-based and analog construction processes, such as logistical bottlenecks due to outdated communication between onsite and offsite, traceability of documents and materials, lack of efficient standardization and imprecise logging of dig sites and finds. Digital tools can increase the project’s visibility while minimizing the kind of human error that delays projects and ROI timelines.
Locusview’s platform achieves all of this by providing a number of integrated tools for each project. For example, it can generate a digital twin for your project, manage all financial operations and control all transactions, as well as follow up on all aspects of project management and prepare packages and deliverables for a project’s closing process. Shabot explained that the platform can move seamlessly between mobile and web applications and be a part of a project throughout all phases of development. It is also coupled with hardware components that are designed for use in construction environments. Shabot concluded his presentation by clarifying that these types of platforms will prove invaluable to all major players in the market: “Our digital construction platform provides all the project information to monitor it in real time and have automatic report generation.”
CHALLENGES IN THE ENERGY SECTOR CAN BE OPPORTUNITIES
Fermín Pérez Casares, Commercial Manager of ForeFront Power, shared the main challenges and opportunities present within the Mexican energy sector and the importance of having true cooperation between the private sector and the government to boost the development of the country. This, during the panel of Mexico Energy Forum 2021 on Thursday, Mar. 11, titled “Challenges and Opportunities in Small Utility Solar Projects.”
Before going into details regarding industry challenges, Pérez explained the differences between generation projects. Distributed generation projects are installed to generate clean electricity for inhouse consumption but also to sell it to other off-takers. Isolated supply is the generation or importation of electrical energy to satisfy a company’s own needs, while local generation is the production or importation of electrical energy to satisfy the consumption of one or more end users that belong to the same group. Pérez also highlighted the types of interconnection available depending on the type of generation: net metering can be found in 99.8 percent of the PV projects in Mexico, net billing is energy injected into the grid that is taken as a balance in favor for energyconsuming companies, while total sale is all the energy generated by a PV project sold at market prices.
The sector’s main concerns include possible conflicts over some energy policies that are not aligned with international agreements like USMCA, which could lead to reduced investments, compromising the growth and development of the country, and a negative environmental impact, driving Mexico away from international targets. “The changes made to the electricity bill will likely increase energy costs. This will create more demand for on-
Commercial Manager of ForeFront Power
site energy generation, especially if it does not need permitting because it remains behind the meter,” said Pérez.
The main challenges that exist today are in transmission and distribution of energy, as well as in the political uncertainty brought by changing the rules of the sector. “The private initiative only wants to help Mexico to boost its energy development. If the government provides clear and reliable rules, companies will adapt to this new reality.”
Pablo Rivero, Country Manager of ForeFront Power, shared Pérez’s point of view and explained during an interview with MBN that Mexico is dealing with an economic situation that has never been seen before. He emphasized that the country will need to experience greater economic stability before companies feel confident to move ahead with projects regarding their energy use and supply.
Pérez stressed that efforts should be made to inform about the importance and benefits of renewable energy, since there are many misconceptions that have resulted in an increased rejection of green energy. “In the last 10 years, the costs of solar energy have fallen dramatically, making the technology increasingly viable. The storage capacity and flexibility of batteries further increase the potential of solar energy,” said Pérez.
With challenges also come opportunities. Among them is the migration of consumers in the selfsupply scheme to a new market dynamic, the elimination of tariffs that could reduce costs by 15 percent, the improvement in energy storage, the increase in demand for energy that will open space to new participants and the increase of renewable energies that reduce the country’s carbon footprint, according to Pérez.
He concluded that Mexico must continue on its path toward an energy transformation, which can be achieved through cooperation between the public and private sectors. “The future of the sector depends on the actions and decisions we take today. Cooperation between sectors would increase certainty and boost the growth of the sector.”
LOWERING LCOE: ULTIMATE GOAL FOR SOLAR TECHNOLOGY
There are few industries where technology is growing as steadily as in solar energy. The panel, “Innovation is Key: Progress and Opportunity in Solar Technology,” featured key leaders from some of the sector’s most important companies, including HUAWEI, NEXTracker and Jinko Solar. Moderated by RER Energy’s Country Manager Carla Ortiz, the panelists expressed their views, agreeing that bringing down costs for operations remains the most important aspect in the industry.
In Mexico, the solar sector is going through significant changes. With governmental policy changes dominating the environment, the trend of developing large utility-scale projects is fading away. Nevertheless, distributed generation (DG) does not suffer as much from regulatory changes because below the 0.5MW threshold, no permits are needed. Taking into account this developing trend, Ortiz posed asked panelists what this shift toward DG meant for solar technology in the country.
Alberto Cuter, General Manager LATAM & Italy of Jinko Solar, explained that photovoltaic technology trends have already changed. Now, bifacial panels dominate the utility-scale environment but they are unlikely to be applied in C&I-focused DG projects. “Because of spatial limitations, optimizing panels on a slightly smaller scale makes more sense in this area.” Cuter said that mono perc panels with P-type or N-type cells would likely become the most popular. In general, efficiency of photovoltaic panels is increasing sharply. “It is now normal to see panels with above 21 percent of efficiency,” said Cuter.
Inverters are the core business of HUAWEI, said Kevin Gutiérrez, Sales Vice President of the company’s Inverter Business. One of the main developments the Chinese technology giant has been focusing on for the past few years is AI. “We have implemented AI in all
RER Energy’s Country Manager
our products for a few years now,” Gutiérrez explained. Through AI, operations and maintenance (O&M) become much easier and safer to boot. Especially in smaller, scattered C&I installations, this provides advantages. “Here, we often see many small installations. Therefore, monitoring becomes crucial toward efficient operations,” he said, highlighting that AI can detect faults, which in turn reduces costs and improves overall efficiency.
For Alejo López, Vice President Latin America of NEXTracker, the trend to move away from the utility scale poses a challenge for the company’s solar trackers. “Our product is designed for larger scale projects,” he acknowledges, “although smaller projects have also found its characteristics attractive and beneficial.” NEXTracker focuses more on adapting its solution to the higher output that bifacial modules offer. Achieving optimal safety during challenging wind and climate conditions is another core element to address. “Improving software is also crucial,” said López, as it facilitates maintenance. Vertical panels are also quickly gaining ground in the market. Nevertheless, López points out, with the current situation this is not developing as fast in Mexico.
Cuter concurs that Mexico’s solar utility-scale landscape is facing challenges. “Mexico used to be the most important market but now it is slowing down.” Regardless, bifacial modules will remain a staple for the fewer large projects being developed. Bifacial panels are a little bit more costly than monofacial panels but offer a much higher efficiency. High demand created a bit of a shortage in the glass needed to manufacture the product. But whatever technology is used, Cuter said that at the end of the day, it needs to work optimally to reduce the levelized cost of electricity (LCOE).
In this regard, all panelists agreed, pointing out that all factors in a power plant need to work together to lower LCOE as much as possible: “The interaction of the components of a project is key to its efficiency,” Ortiz said. “It is of the highest importance,” concurred Gutiérrez. This is why HUAWEI focuses only on string invertors, which can control the voltage panels transmit efficiently, among other benefits: “We can now send energy at higher voltages with fewer cables and equipment. This reduces project CAPEX without affecting the quality of the technology,” he said. Due to the key role LCOE plays, participants pointed out that their respective R&D efforts are aimed at lowering these costs even further. Cuter highlighter how far solar costs have dropped in recent years. “This has been a benefit for the world´s solar industry, but there is still work to be done,” he continued, adding that a race to the bottom for solar panel prices does make operations for OEMs in that area somewhat unstable.
“A project’s success indeed depends on how low its LCOE can go,” López agrees. Therefore, other stages in the project, such as O&M play, an important role, too. To deal with difficult climate conditions, remote and real-time diagnostics are important to enhance uptime and reduce downtime for solar plants. “Getting the tracker to move modules in the most secure position as fast as possible is therefore important,” he concluded.
Despite disruptions in technology, not every shift occurs via intense changes. A lot of solar technology is applied because it resembles the “low-hanging fruit.” Cuter and Gutiérrez both see storage as a great opportunity due to the possibilities to inject power into the grid for stability and save costs during peak demand. Gutiérrez considers battery storage beneficial, whereas Cuter points out that green hydrogen or hydropower can be used to enhance the penetration of solar, as well. López agreed but pointed out that solar companies had a great opportunity to add value by making their products compatible with others. “This is difficult because the offer in the market is large. Nonetheless, this can prove a major benefit for clients,” said López.
