VIEW FROM THE TOP
STEPPING STONES TO A REINVIGORATED MARKET ENRIQUE GIMÉNEZ Director General of Fisterra Energy
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Q: What needs to be done to improve Mexico’s Energy
Q: With Blackstone, Ektria and Frontera México Generación,
Reform?
what is Fisterra’s strategy to avoid diluting your brand?
A: The reform is a positive step forward for Mexico.
A: A brand is important for consumers. In our line of
Considerable effort was invested in it and there is an
business, this is significant for the spot market. The
undeniable sense of quality in its provisions. There are two
wholesale electricity market is not so adamant about
basic areas for improvement. Firstly, the reform is being
branding and is more concerned about financial statements
implemented and regulated simultaneously, causing some
and loan guarantees. Ektria oversees the spot market, while
inefficiencies in market operations, generating unease with
the rest of our branches focus on the wholesale market,
potential operators and delays. Secondly, in Mexico the
where there are fewer players.
long-term and short-term electricity markets were launched concurrently. In our view, the long-term market has been
Q: What is the comparative advantage of Fisterra’s energy
predominantly prioritized because of the long-term auctions.
supplier branch?
Meanwhile, the short-term market lacks liquidity due to the
A: Blackstone, our financial arm, provides the financial
scarcity of players operating in it. The picture of undeniable
solidity our clients look for. Blackstone also provides an
economic success and achievement of competitive prices
important input from the US electricity market that Mexico
does not reflect the day-to-day reality of the market.
also uses. As a result, we can anticipate the evolution of the Mexican energy market because we have seen other
Q: Could you elaborate on Fisterra’s bilateral transaction
markets mature.
with CFE? A: The new regulatory framework stipulates that power
We have pioneered the energy financial trading market in
generators must sell all the electricity produced to CENACE
Mexico in accordance with the tendencies we have observed
and CENACE pays for it all. In turn, qualified suppliers
elsewhere. We regularly release our forward price curve
have to buy all the electricity they need from CENACE
from one week to five years. Fisterra also helps represent
and sell it to qualified users. Plus, qualified suppliers are
small power producers, from 1-15MW power capacity,
obligated by law to purchase an additional 60 percent of
that are unable to take advantage of the opportunities
its electricity consumption from a power producer through
presented by the developing regulations. Our company
an energy-trading contract. Generators sell an additional
takes the power they generate to the market.
60 percent of electricity directly to qualified suppliers. This design flaw can be compensated through a financial
Q: What is Fisterra Energy’s long-term vision for Mexico?
bilateral transaction mechanism that power producers and
A: Mexico is a country with tremendous opportunities in
qualified suppliers have at their disposal to alert CENACE
the energy sector. Mexico is ranked 15th globally in terms
of these additional energy-trading contracts so the
of energy consumption volume, and this consumption is
government agency can adjust the amounts charged and
expected to grow exponentially. Despite its few mishaps,
paid to power generators and qualified suppliers. Fisterra
the Energy Reform is sound. Our new-arrival status in
Energy basically capitalized on this tool designed by the
Mexico gives us an important comparative advantage.
Ministry of Energy for Mexico’s electric market.
Fisterra already provided the stepping stones toward invigorating the market through financial trading and we have high hopes in the development of this segment. Our
infrastructure
company is also motivated by the announced midterm
investments worldwide. Fisterra enjoys technical expertise and
auctions. We will continue devising strategies in client-
extensive experience in M&A, project financing, development,
attraction, power generation and diversifying our product
construction and operation
portfolios.
Fisterra
Energy is
specialized
in
energy
