VIEW FROM THE TOP
THE STATE OF MEXICAN WIND POWER ANGÉLICA RUIZ Vice President and Managing Director Mexico and Latin America of Vestas
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Q: What is needed for wind power in Mexico to reach the
of government, CFE and PEMEX. The increased number
level of importance it has in countries like Denmark?
of private players in the game, as well as the diverse
A: It all comes with time. The Energy Reform is still new,
institutions overlooking the sector, heighten the intricacies
having been implemented in 2014. If we look at where
of the private-public interaction. From the public sector, we
we are now, a lot has been done. We find ourselves in
need guidelines on how to assess communities, for instance.
a transitional phase: the starting point of the Energy
Decision-makers need to be able to coordinate with and
Reform in terms of power generation has been extremely
advise companies on the viability and social impact
successful. The results can be seen in the power auctions.
studies of their projects. Private companies have business
We should highlight the fact that we come from a
plans they must adhere to, encompassing the companies’
monopolistic sector, with CFE and PEMEX at the center
obligations, targets and the government’s guidelines and
for decades. We have just started a learning curve that
regulations. It has to be a joint effort.
is reflected in how the auctions have evolved. We have a good conceptual design but we are still lagging behind in
Q: Do you consider Mexico’s current rules and regulations
the implementation component, such as project financing
sufficient to help the energy sector reach its full potential?
and warranties for the sector. There is one issue that
A: Mexico has set some very aggressive targets pertaining
needs to be addressed, which revolves around non-
to its 35 percent clean energy production goal by 2024.
technical risks: security and communities, and everything
Having defined these objectives and being part of COP21
surrounding the topic of corporate responsibility. The
makes an important difference. It is something quite new for
authorities need to define the proper legal framework to
Latin America; we do not see many other countries being
address these issues and provide the private sphere with
so direct and straightforward with such goals. We believe
the tools to tackle them. Also, the available infrastructure
in an intricate system in which you can plug in renewable
has to respond to the growing energy demand, the grid
energy and address your risks by ensuring you have a
has to be ready to deal with our goal of a diversified
reliable backup plan to address potential issues. In Mexico’s
energy matrix. These are the challenges we will be facing
case, we believe in a step-by-step approach, redefining the
in the coming years.
new targets as we advance.
Q: How can private and public players work together to
Q: What are wind power’s strengths in Mexico compared
address nontechnical risks?
to other renewable energies?
A: Both are necessary. We have three levels of government:
A: Wind power has proven to be competitive enough to
federal, state and municipal. Each level already has some
win in competition with other technologies. Technically
policies in place. We have to ensure that all those policies
speaking, it takes longer to develop a wind farm than a
are coherent and in line with the goals of the reform. The
solar park, but the generation capacity is better in the
interaction between these three levels of government and
former. Wind blows 24 hours a day. There is a 7:1 ratio
the private energy sector has reached an increased level of
of land usage when you compare wind to solar energy.
complexity, considering the previous scheme was a direct
You can find great resources in Mexico, such as in the
and centralized communication between these three levels
states of Tamaulipas, Oaxaca and the northern part of Baja California, with capacity factors of 40 percent on average. It is a matter of finding the right place and the
Vestas is now a global company and an energy leader for the
right resources, which does not necessarily mean that
manufacturing, operation and maintenance of wind turbines.
you will find yourself competing against other renewable
It has over 75GW of wind capacity installed, representing
resources. At the end of the day, we are looking to
around 20 percent of the global installed base
have local, diversified energy matrices that assist local
