VIEW FROM THE TOP
COGENERATION CONGLOMERATE SEES OPPORTUNITY IN DISTRIBUTED GENERATION GEORGE OPOCENSKY Director General of ATCO
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Q: What is missing from Mexico’s wholesale electricity
has the advantage of being able to provide a wide variety
market to make it more attractive for investment?
of products and services from logistics, modular structures,
A: Mexico’s wholesale electricity market is armed with all
gas pipelines and liquids, power generation, distribution and
the key components it requires to generate competition and
transmission to provision of water treatment and conveying
foster new projects. From a regulatory standpoint, however,
systems, all under an innovative solution benchmark. Our
the accelerated pace of the Energy Reform seems to often
diversified portfolio gives us the flexibility to provide and
get ahead of the required regulatory policies, causing
adapt to all of our customers’ needs under one umbrella.
confusion and inconsistent interpretation and application by the various energy-focused government bodies. In our
Q: Considering your experience in retail energy, what are
particular case, given the distributed generation portfolio
your plans for this particular business line in Mexico?
we set out to develop in Mexico, our understanding of the
A: We are pursuing all forms of gas fired and renewable
rules was often met with differing views of the various
generation, with a focus on distributed and solar energy.
government bodies, causing extended delays and additional
A flexible generation portfolio does not tie us to a single
costs in completing projects.
generation source that can be impacted with technological advances or changing market conditions. Flexible
Another hurdle to overcome for new generators is the
generation also provides customers' choices to meet their
continued dominance of CFE in the market, whereby many
business needs. The reason we are pursuing gas fired
customers continue to compare and link the price of non-
generation in addition to renewables is that stable baseload
CFE delivered energy to the existing and fluctuating CFE
generation that comes from gas fired units becomes
tariffs. Rather, we try to focus our client’s attention on its
increasingly important for grid stability while bridging
own business needs and competitive energy pricing to help
old and fuel-oil fired generation with renewables. Energy
it achieve the optimum business results.
storage solutions are also of interest and we are pursuing several technologies in other operating jurisdictions.
Q: How did ATCO adapt its market expansion strategy for Mexico?
Q: What was the added value of your Grupo Hermes
A: ATCO’s footprint in Canada and Australia was developed
partnership for the Hidalgo cogeneration project?
over a long period of time, while our presence in Mexico
A: ATCO considers it vital to work with Mexican partners
is relatively new. For the first two markets, ATCO built
because of their expertise in dealing with land owners,
customer-centered business strategies. Identifying
facilitating permitting processes and understanding how
potential customers, pinpointing their needs and providing
to deal with government agencies, among others. They
tailored solutions laid the groundwork for our success in
bring specific knowledge of the Mexican market to the
those locations. This is the approach that we are looking to
equation.
duplicate in Mexico. While differences in market conditions, regulatory landscape and culture have to be taken into
Q: How is ATCO capitalizing on its cogeneration expertise
consideration in our strategy, we are confident we will
in Mexico?
replicate the success we have had in other markets. ATCO
A: We are the largest cogeneration provider in Western Canada and also own several cogeneration facilities in Australia, a direct result of our ability to design tailor-
ATCO is a Canadian conglomerate that entered Mexico in 2014,
made cogeneration plants for our customers. Our
engaged in logistics, electricity production, pipelines and retail
experience is not only in designing and building tailored
of energy. Its services range from natural gas delivery to provide
cogeneration plants, but also in the operation and
modular housing and water infrastructure solutions
maintenance of these plants.
