Last year’s international context showcased the importance of energy security. Challenges in sourcing fossil fuels linger due to the ongoing conflict between Russia and Ukraine. Meanwhile, energy demands keep on growing as the nearshoring trend fosters further investment in Mexico, thanks to its favorable conditions as a member of USMCA and other international trade agreements. However, stakeholders understand the pressure to secure this energy from clean sources. With daily solar irradiance levels between 4.4kWh/m2 and 6.3kWh/m2 and around 2,190 hours of sunshine a year, Mexico has a unique opportunity to increase the adoption of this fastgrowing renewable energy.
While this type of energy has been identified as the key to success for clean energy development, boosted by its availability and economic viability, Mexico must implement strong strategies for the attraction of large solar projects. Complications are still present in the form of permit stagnation and constant changes in regulation and rhetoric regarding clean energy. This has created tensions between Mexico and its trade partners, who have requested consultations to avoid going to an energy arbitration panel, which, according to experts, Mexico would likely lose.
The Mexican government has opened up to dialogue and cooperation with the private sector. Still, the latter looks to push for more participation to contribute to Mexico’s energy sufficiency and respond to the increasing demand for renewable energy. At Mexico Solar Summit 2023, key leaders of the energy and solar industry tackled the foreseeable opportunities and challenges for the future. Experts shared perspectives on how to enhance public and private cooperation, in favor of Mexico’s energy transition.
67 companies 91 conference participants
Breakdown by job title
17 speakers
68 in-person attendance
3 sponsors
1,973 visitors to the conference website
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74 participants
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• AES
• Agencia de Energía del Estado de puebla
• Alltech
• Asolmex
• Astronergy
• ATA Renewables
• AXA Seguros
• Balam Energy
• BMW SLp
• Capwatt
• Carbon Trust
• CEnACE
• CfE
• Chint Solar México
• Co MISIÓ n ESTATAL DE En ERGÍA
• Consultora HMonroy
• Consultoría Sustentable G2H
• Costco
• ECo VALUE SA DE CV
• En EL
• Energia Real
• Engie
• Enlight
• farmacias del Ahorro
• finsolar
• GCL
• Green power Monitor
• Grupo México
• Helios
• Holcim México o peraciones
• H o LLAn D & K n IGHT LLp
• Huawei Technologies Engineering
• Iberdrola
• Iconn
• Internovum Solar
• K pMG
• Lon Gi
• MAn En ERGy So LUTIonS S DE RL DE CV
• Mexico City Secretary of Economic Development
• Michelin
• MitigaCo2
• Mitsui & Co. Infrastructure Solutions
• n exus Energía
• oCA Global
• owens Corning
• pTC
• RER Energy Group
• Saavi Energía
• Saint Gobain
• Sánchez Devanny
• SECRETARÍA DE DESARRo LLo ECon ÓMICo SUSTEnTABLE
• Shams Energía
• SIEMEn S En ERGy
• SIGMA
• Sinia Renovables
• SMA Mexico
• Solarever Tecnología de América, S.A. de C.V.
• Solargis
• Solfium
• SU n ECo
• Tecnoden
• The Excellence Collection
• TM f Group
• Walmart
• Walworth
• Wood Mackenzie
• X-Elio
08:55
WELCOME TO MEXICO SOLAR SUMMIT 2023
09:00 STATE OF THE SOLAR INDUSTRY
Speaker: Carla Medina, ASo LMEX
09:30
PROMOTING THE ENERGY TRANSITION WITHIN CITIES: CENTRAL DE ABASTOS SOLAR PLANT
Speaker: Fadlala Akabani, Mexico City Ministry of Economic Development
09:45 DG AS A DECARBONIZATION DRIVER FOR C&I VALUE CHAINS
Moderator: Iván Islas, Carbon Trust
Panelists: Fernando del Cueto, Solfium
Luis Miguel Aguilar, Lon Gi Solar
Ricardo Zúñiga, CapWatt
10:30
11:30
NETWORKING COFFEE BREAK - AI-POWERED 1:1 MEETINGS
NEW TECHNOLOGIES FOR THE REGION’S PV INDUSTRY
Speaker: Antonio Morales, Lon Gi Solar
12:00 ESG: FROM STRATEGY TO IMPLEMENTATION
Speaker: Carlos Fuentes, Mitsui & Co. Infrastructure Solutions
12:30 SHORT AND MEDIUM-TERM UTILITY SCALE SOLAR OPPORTUNITIES
Moderator: Rafael Sánchez, oCA Global
Panelists: Armando Gómez, X-ELIo
Sylvia Levya, Wood Mackenzie
Francisco Alcalde, Astronergy
13:30
NETWORKING LUNCH - AI-POWERED 1:1 MEETINGS
15:00 AN ENERGY WELL-BEING MODEL FOR THE STATE OF PUEBLA
Speaker: Rodrigo Grimaldo, puebla Energy Agency
15:15
RELIABILITY: ENHANCING SOLAR’S VALUE PROPOSITION THROUGH ENERGY STORAGE
Moderator: Patricia Tatto, ATA Renewables
Panelists: Carla Ortiz, RER Energy Group
Óscar García, Enlight
Ian de la Garza, finsolar
16:00
NETWORKING COCKTAIL - AI-POWERED 1:1 MEETINGS
MEXICO'S SOLAR ENERGY DEPLOYMENT FACES CHALLENGES
Mexico has one of the most attractive solar irradiation profiles in the world with daily solar irradiance levels between 4.4kWh/m2 and 6.3kWh/m2. The country enjoys around 2,190 hours of sunshine a year. The hotspots for the solar energy market in the country are Baja California, Coahuila, Chihuahua and Sonora, although pretty much any other area is viable, too. However, some challenges limit the country’s potential to meet the clean energy goals set by 2030.
Carla Medina, p resident, AS o LMEX, says industry insiders believe Mexico nearly has the double installed capacity of what is necessary to meet the country’s energy demand. nevertheless, regional transmission capacity must be accounted for to ensure a clean and sufficient power supply.
Boosted Mexico’s huge solar potential, rapid growth in renewable energy deployment could enable the country to achieve its 35% clean energy generation goal by 2024, said Jennifer Granholm, the US Secretary of Energy. Despite Mexico’s changes in energy legislation, it has made important steps toward its energy transition by allowing companies to invest in photovoltaic solar systems and generate their own energy to use within their facilities if these systems do not exceed the 0.5MW threshold.
“The private sector constructed 11.3GW of renewables in contrast to 0.2GW from CFE between 2016 and 2022. According to ASOLMEX, 3.8GW of new energy capacity should be deployed every year, which will require US$50 billion in the next seven years to develop generation, transmission and distribution capacity”
Carla Medina President | ASOLMEX
However, fulfilling goals may be complicated by the actual capacity to develop proper clean energy infrastructure. “Mexico does not have enough clean energy and its renewable energy development has
decreased in comparison to previous years. The effective generation of clean energy is forecasted to decline, even after considering the energy generated by the Sonora plan if it materializes. This will result in a widening gap between the country’s energy generation goals. Mexico will only generate 28% of the 35% clean energy target it set for 2024 if the Sonora plan is fully deployed. Without the Sonora plan and other planned projects, this figure could drop down further to 26.6%,” Medina said.
Mexico must deploy 2.5GW of solar energy and 1.3GW of wind energy per year between 2023 and 2030 if it is to become a clean energy powerhouse. Medina stressed that the government and private sector must therefore work together because no one can achieve such ambitious goals by themselves.
Medina highlighted that Mexico’s deployment of clean energy infrastructure was mainly driven by the private sector but no company or government can lead the energy transition alone. “The private sector constructed 11.3GW of renewables in contrast to 0.2GW from CfE between 2016 and 2022. According to ASo LMEX, 3.8GW of new energy capacity should be deployed every year, which will require US$50 billion in the next seven years to develop generation, transmission and distribution capacity,” Medina added.
Although solar energy has been identified as the key to success for clean energy development, boosted by the technology’s availability and economic viability, Mexico must implement strong strategies for the attraction of large solar projects, enable institutional finance mechanisms for development and avoid delays in permitting.
According to Medina, to establish a strong framework for the growth of Solar p V generation, three fundamental aspects must be addressed. f irstly, reliability, which can be achieved by dividing grid investment projects into smaller segments,
using bidding mechanisms to select private players for local reinforcement, easing congestion between regions with excess green energy and high-demand centers and developing proper regulations for energy storage systems. Secondly, political concerns should be addressed by creating
collaboration opportunities between private players and C f E. Lastly, Mexico has to ensure certainty in the regulatory environment by guaranteeing the autonomy of energy regulatory agencies and promoting transparency as well as the independence of CEn ACE.
CENTRAL DE ABASTO: AN EMBLEMATIC SOL AR PROJECT
The solar project at the Central de Abasto, Mexico City’s massive Central Market, was designed as the most emblematic renewable energy program in Mexico City. The 18MW solar plant is fundamental to the climate action program led by Mexico City’s Mayor Claudia Sheinbaum.
Last year, Mexico City’s government announced that it began the works for the construction of the photovoltaic (pV) Solar plant at the Mexico City Central Market in March 2022. The allocated resources for this project come from the Energy Transition fund and Sustainable Exploitation of Energy ( foTEASE) of the country’s Ministry of Energy (SEnER).
According to fadlala Akabani, Minister of Economic Development, Mexico City’s Ministry of Economic Development (SEDECo), this project is part of the capital city’s government commitment to the clean energy transition. Moreover, the project is part of the Solar City concept, whose goal is to provide Mexico City with the possibility of growing as
a power producer by implementing clean and renewable sources of energy.
Akabani reported that the cost of the project amounted to MX$600 million (US$27.25 million), including making the market’s roofs waterproof, which was necessary for the installation of the solar system. He further explained that panels were designed individually due to the differences between each rooftop and can withstand extreme climate conditions.
According to the Ministry of Economic Development (SEDECo), the project overseen by CfE was implemented in two stages.The first consists of two Distributed Generation (DG) solar systems on the roof of storage units and is set to start operating in 1H23. The second phase corresponds to the 18MW pV project that will produce 25GWh of clean energy for the market. Its installation began in May 2022 to be completed by the end of 2023.
This emblematic project is set to save up to 12,404 tons of Co2 with the deployment of
36,000 pV modules. According to Akabani, the Central de Abastos contributes 1% of the national GD p, and this project can contribute MX$73.5 million (US$4 million) in annual energy savings for the market. During the project’s development, SEDECo certified 1,000 specialized technicians to install p V panels on homes and small businesses. “SEDEC o dedicated itself to closing the circle of buying and selling solar panels because there were no specialized technicians who could enter homes to install them and, above all, we found there were insufficient reliable technicians. Therefore, we certified close to 1,000 people to install these products in homes and businesses. This way, we encourage the consumption of solar power in homes,” said Akabani.
Mexico City’s climate change action program drives sustainable mobility, improves air quality, provides value for the environment and is set to generate no waste at all. Solar City is based on four benchmarks, including enhancing electricity generation from DG projects, solar energy for SMEs,
training technicians and workers as well as boosting the adoption and development of electromobility technologies.
Akabani also highlighted the importance of promoting Mexican-made products for the value chains close to the city’s green projects. “We continue working on the installation of solar panels on top of public buildings and have collaborated with many companies for the installation of pB panels. We boosted close to 100 companies in the field of electromobility. We also recently inaugurated a Metrobus line running a fully electric fleet,” he added.
Akabani also discussed the opportunities that nearshoring represents for the country and underlined the government’s commitment to take advantage of this development. He recognized the need to further develop an industry for lithium batteries and energy storage, highlighting the government’s decision to boost this industry through the new state company, LitioMx.
DG INFRASTRUCTURE DRIVEN BY NEED TO ENHANCE C&I VALUE CHAINS.
Distributed Generation (DG) continues to be a big part of the energy transition toward renewable and cleaner power sources. A future where solar panels are ubiquitous in every home or business lies ahead. All efforts to accelerate this will help reduce Co2 emissions and mitigate climate change. In Mexico, much of the DG infrastructure is developed by private companies, although a restrictive regulatory framework holds back an industry boom
f or Ricardo Zúñiga, Country Manager, CapWatt, the opportunity for DG is clear and urgent. Zúñiga states that it is paramount to ensure these projects are successful, now more than ever before due to the urgency of climate change. He highlights that DG’s value chain is more developed and the technology costs are more accessible than they used to be, ensuring short times for Ro Is. “Today, solutions for all types of demands are present because the market has developed and created different business models that work very well. However, optimal market conditions must be ensured to develop DG. We do not know what will happen once subsidies go down and if we do not move the transition forward today, we will have a problem in the future,” said Zúñiga.
DG is a term used when electricity is generated from distributed power sources, often clean energy, near the point of
“However, optimal market conditions must be ensured to develop DG. We do not know what will happen once subsidies go down and if we do not move the transition forward today, we will have a problem in the future”
Ricardo Zúñiga
Country Manager | CapWatt
consumption instead of centralized power plants, whose electricity is then transmitted. DG is not necessarily isolated from the public grid but can be linked to it, capable of injecting energy surpluses when required. DG can help support the delivery of clean, reliable power to more customers and reduce electricity losses along transmission and distribution lines.
In Mexico, current regulation limits DG to 0.5MW. Companies that are investing in DG consume much more energy than this limit and are left without alternatives to continue expanding their energy decarbonization strategies. Experts recognize the impediment these regulations often pose to making DG more attractive for clients that need more power.
According to Ivan Islas, Associate Director, Carbon Trust, while the conditions in other countries certainly vary, there are examples of success abroad. “We want to generate more, and more importantly, this also opens the door for innovation and can further drive down the prices along the value chain of the industry,” he po inted out.
furthermore, experts identify secondary benefits of enhancing the DG industry. “The development of DG can also drive innovation. Information Technologies (ITs) represent a huge opportunity that will definitely grow further. ITs allow users to gather information, which provides valuable insights regarding the state of operations. This translates to financial and decarbonization benefits,” concurs fernando del Cueto, Coo, Solfium.
Mexico has up to 300,000 DG interconnection points and more companies are emerging in the market, tightening margins and complicating the sector’s growth due to the lack of professionalization or added value from participants. Luis Miguel Aguilar, Sr. Sales Manager DG Mexico, Lon Gi Solar, sees the importance of regulation as a crucial factor for further professionalization and standardization in the sector. “ from the point of view of technology developers, what we have to do is adapt to the environment, including regulation. Having personnel trained to respond to regulations is extremely important to also have systems that comply with all regulations for the benefit of all members of the sector,” said del Cueto.
LONGI: AT THE EDGE OF PV TECHNOLOGY INNOVATION.
According to the International Energy Agency (IEA), the worldwide energy capacity is expected to expand by 56 % over the next few years, reaching 270GW by 2026. This growth is expected to be largely boosted by solar energy and utilityscale batteries, with tax incentives driving the expansion via wide-scale adoption. The increased demand for renewable power and energy storage infrastructure is creating
new opportunities for companies in the solar power production and technology distribution supply chain, which must respond to the growing demand.
As the demand for industrial, commercial and residential photovoltaic (pV) solutions with higher conversion efficiency, longterm reliability and aesthetically pleasing systems continues to develop at a rapid
pace, Lon Gi has introduced Hi-M o 6, its first module with Hybrid p assivated Back Contact (H p BC) technology, designed exclusively for the globally distributed consum er market.
“Longi has always been a pioneer in the development of technologies,” said Antonio Morales, Sr. Sales Manager Mexico, L on Gi Green Energy Technology. The company is committed to be the leader in the creation of value by boosting the global energy transition. In 2021, Lon Gi became the first solar technological company to ship over 30GW of p V modules to clients in one year.
H pBC technology is considered a milestone in the development of solar cell technology since its unique design allows it to achieve a maximum efficiency of 25.3% in mass production. In addition, the new product is designed to fulfill the needs of various scenarios and extreme weather conditions, making the offer superior in efficiency, safety and a esthetics.
Lon Gi’s Hi-M o 6 has become one of the most reliable photovoltaic modules on the market because it uses a revolutionary technological design and employs a back contact one-line welding structure instead of the traditional structure, improving the module’s resistance to cracking while delivering a higher level of safety and re liability.
Moreover, the new line of products has improved light absorption capacity, a higher module output efficiency and greater power generation in different environments such as low radiation, high temperature and oblique light. H p BC technology has improved resistance to module microcracking, maximizing product reliability.
The Hi-M o 6 Series includes four product lines that are adhered to the 182mm standard. The HI-M o 6 Explorer improves performance, while the Hi-M o 6 Scientist delivers the maximum module efficiency. Meanwhile, the Hi-M o 6 Guardian is a preinstalled optimizer. What is more, Lon Gi is introducing colored photovoltaic modules with the Hi-M o 6 Artist.
The products offer excellent power production performance as they generate 10% more energy than p ERC modules and boast 6% more installation capacity. Moreover, this technology guarantees stable energy generation in high-temperature conditions. “L on Gi wants to increase the module efficiency, which is the most important issue,” added Morales.
Lon Gi is also introducing Lon Gi Hydrogen in its bid to become a leading hydrogen technology player, too. This solution effectively reduces the levelized cost of hydrogen, which brings a wealth of benefits but remains somewhat costly as an energy solution. “There is a lot of interest in the
implementation of hydrogen solutions in the mining and natural gas sectors, mainly because of the fuel savings this resource represents,” highlighted Morales.
Lon Gi has dedicated itself to technology innovation through five business lines
covering mono-silicon wafers, cells and modules, commercial and industrial (C&I) distributed generation (DG) solar solutions, green energy solutions and hydrogen equipment. Latin America is a strategic region for the company and it has invested in a large marketing, logistics and legal team.
MOVING ESG BENCHMARKS FROM STRATEGY TO IMPLEMENTATION
The performance of environmental, social and governance (ESG) indicators has become a key measure to identify risks and growth opportunities for organizations, particularly in the financial sector. A recent survey stated that 99% of investors consider companies’ ESG disclosures as a part of their investment decision-making, with 74% using a rigorous and structured approach for their analysis. In comparison, only 32% of investors surveyed were using a rigorous approach, according to E y ’s 2018 Global Institutional Investor Survey.
Companies that have specific ESG goals are often also the most profitable and competitive. In addition, companies that commit to sustainable goals generate more confidence in their brand. The trend also shows that investors are increasingly interested in having their capital allocated to business projects with ESG perspectives.
“Sustainability is the capacity to achieve economic prosperity in the long term
while preserving natural resources and safeguarding the next generation’s future,” said Carlos fuentes, Business Development, Mitsui & Co. Infrastructure Solutions.
fuentes highlighted that over 80% of global investors perceive ESG risks as a key factor when evaluating their investment decisions. He also mentioned that all ESG funds increased their income by 100% in 2020 and by 150% in 2021.
ESG has materialized in reporting and strategy definition methodologies, too. It was created from the necessity for certainty, transparency and vision of a company’s impact on its surroundings. Current methodologies are sustainability reports, sustainability-focused financial reporting methodologies like TC f D and specific initiatives for emission reduction and renewable energy reports like Carbon Disclosure p roject (CD p) and the Science Based Target Initiatives (SBTi).
Measuring sustainability information comparably across ESG themes can be difficult, leading to variations in reporting. This is where companies can work with stakeholders to agree on how to achieve uniformity in reporting. By doing so, companies can help ensure that their ESG disclosures are correct, helpful to investors and based on the specific goals, values sector, size, time horizon and location of the company
infrastructure for energy generation and offsite generation, which entails the generation of energy through qualified supply and acquisition of products approved by reporting entities like I-RECs .“All strategies must be in line with the requirements of the clients’ reporting methodologies. We, as solutions providers, must understand what our clients are looking for,” fuentes added.
Mitsui & Co. recently launched Mitsui & Co. Infrastructure Solutions (MITinfra) to deliver water, power and energy solutions in Mexico. MITinfra will provide companies with infrastructure services offered by Mitsui’s two subsidiaries, Atlatec, a waterrelated business, and Mitsui & Co. p ower Development and Management Americas (M pA), focused on power generation.
The path to improving ESG benchmarks can be muddled. It is important to consider that there are different options, such as energy efficiency, which focuses on the reduction of energy consumption and scope 1 emissions; on-site generation, which involves tailored
The company seeks to respond to the current market trend of decentralization, decarbonization and sustainability by providing reliable, competitive and environmentally sustainable water and energy supply to its customers in Mexico. This way, it contributes to the social and economic development of Mexico and its surrounding countries.
SHORT AND MEDIUM-TERM UTILITY SCALE SOLAR OPPORTUNITIES
According to a report by the n ational Renewable Energy Laboratory ( n REL), Mexico’s national technical power potential could satisfy the electricity demand in the country a hundred times over. n onetheless, clean energy infrastructure needs to be developed further, and solar energy remains Mexico’s greatest prospect in terms of potential power and economic viability. Eyeing short and medium-term opportunities is therefore key, though a slew of obstacles makes developing solar projects.
Mexico not only has great potential in terms of radiation resources but also boasts geographic advantages to become a key international actor to lead industrial renewable energy. However, the government has shifted from the 2014 Energy Reform,
which boosted private energy development, back to a state-centered model spearheaded by C f E, which has created hurdles for private energy players. Rafael Sánchez, Division Manager, o CA Global, highlights that opportunities and challenges coexist in any environment and that adapting to this is crucial. “ p layers have to know that the context is part of any development and you have to stick to regulation. In this sense, optimization plays a key role. With better technology, we will gain greater competitive advantages.”
Despite Mexico’s undeniable potential, regulation sends mixed signals to project developers. Sylvia Leyva, Senior Analyst Utility-Scale Solar n orth America, Wood Mackenzie, explains that Mexico’s government finally started to process
“All strategies must be in line with the requirements of the clients’ reporting methodologies. We, as solutions providers, must understand what our clients are looking for”
Carlos Fuentes
Business Development | Mitsui & Co. Infrastructure Solutions
more permits by the end 2022 after a long stagnation from regulator CRE. However, this move was accompanied by ambitious promises regarding publicly funded renewable power projects and other attempts to decrease the number of permits allowed for projects monthly.
Experts concur that this environment puts investors in a difficult position since changes in regulation have also resulted in additional costs for utility-scale project planning. The Mexican energy sector has seen its development obstructed by adverse policy, but companies showed commitment and resilience to further develop clean energy.
Despite problematic regulatory developments, experts expect the sector will continue to grow. Still, Leyva recognizes that developers must have adequate planning to mitigate risks. “Some projects end up spending more than the projected investment and when knowing the transmission problems that may lie ahead, good planning is important from the beginning,” she says.
Leyva added that the need for utility-scale solar development means its development cannot be stopped. When the perfect moment comes for developers to respond to demand once again in Mexico, it will all come down to which players have stayed tuned in to greenfield development and
are therefore prepared to develop the necessary infra structure.
According to francisco Alcalde, Country Manager, Astronergy, Mexico’s opportunities still represent huge benefits. In light of supply chain relocations and an inevitable increase in the energy demand, Mexico’s private sector and offtakers demanding clean energy still have the chance to push for the development of larger solar projects, as well as support the development of other key power infrastructure. “I see that the government is beginning to push the market forward, too. Although regulation often represents obstacles since the risk that the rules will change suddenly is present, our grid does require further development. It is in this environment that the private sector can also cooperate and from there drive the development of the industry,” he explained.
Armando Gómez, Head of LATAM, X-ELIo, concurred that the market will inevitably demand clean energy, opening new opportunities. yet for the time being, project developers in less-developed markets must adapt and face the challenges ahead. “There are issues ahead that cannot be addressed yet in Mexico because the market is in a different developmental stage. Many other countries have gone through a similar process where regulation is developed along the way. We could learn from international experience to accelerate the process,
because our market could evolve and reach a higher level of discussion to bring in new technologies and develop more ways to optimize energy projects.” Despite the high demand for Latin American products, Gómez highlighted that the market still has ways to go regarding development, especially when it comes to regulation.
PUEBLA: A POTENTIAL E NERGY HUB
The government of the state of p uebla recognizes the importance of energy as a lever for development. It therefore developed a model for energy wellbeing, ensuring the state can bring clean, affordable and sustainable electricity to places where it is needed most.
“Currently, puebla is the only Mexican state that uses five different types of renewable energies,” said Rodrigo Grimaldo, Director of Institutional Liaisons, the Energy Agency of the State of puebla (AEEp). Consequently, over half of the generated electricity in the state comes from clean sources. As of December 2021, the state ranks 18th in installed distributed generation installed (DG), placing it in Mexico’s middle field for distributed capacity
Solar has become a reliable, cheap and environmentally friendly renewable power solution globally. In 2021, solar energy accounted for 3.6% of the world’s electricity generation. Its capacity increased 22% from the previous year, reaching 190GW, and this growth trend is expected to rise in the coming years.
development. It focuses on sustainability and coordination to drive energy efficiency, project development and private investment in the marketing, storage, transport and distribution of energ y sources.
The agency’s strategies are based on its well-being model that seeks to combat energy poverty, offer a competitive supply of natural gas to industrial parks, decarbonize the economy, attract investment and promote energy innovation at the local level, explained Grimaldo.
Initially, the agency had identified 1.4 million ha ideal for renewable energy production. o f these, 150,000ha were to be destined for solar energy projects, 620,000ha to detonate wind farms, 250,000ha for biomass projects and 120,000 for geothermal ventures.
Miguel Barbosa, the previous Governor of the state of p uebla, highlighted that the federal government’s energy policy was making it difficult to help private investment projects materialize. Therefore, the state government announced the creation of AEE p, through which the state government planned to attract private investment to develop renewable energy and natural gas projects.
AEE p is a decentralized public organism specializing in the promotion of energy
The AEE p is implementing projects with a great social impact. for example, its Solar Schools project benefits more than 36,000 students by footing the electricity bill through the installation of more than 1,000 photovoltaic ( p V) solar panels. It also has an incentive program that supports the development of SMEs by reducing the cost of electricity or f uel bills.
The state agency is also committed to scientific and technological innovation in the energy sector through intersectional initiatives that integrate sectors such as energy and electromobility. AEE p ’s electromobility hub seeks to position p uebla as a leading state in electric and sustainable mobility.
“Currently, Puebla is the only Mexican state that uses five different types of renewable energies”
Rodrigo Grimaldo Director of Institutional Liaisons | Puebla Energy Agency
AEE p announced a collaboration with the Universidad Tecnológica de p uebla (UT p) to design and manufacture an alkaline electrolyzer to produce green hydrogen. Instituto politécnico nacional (I pn) and the Mexican Hydrogen Association will support this project, too. furthermore, the agency is investing in the development of talent by working on the first academic studies in electromobility in the country.
In 2022, puebla reported it would install 43 EV chargers in 17 cities this year, as reported by MB n . The project is being developed with 80% private investment and 20% public investment, according to Grimaldo. “ p uebla is at the forefront of development by committing to this comprehensive strategy, under the guidance of a policy that promotes mobility and economy in
the state. p uebla aims to reduce polluting emissions, especially in urban centers,” said o livia Salomón, p uebla’s Minister of Economy.
Moreover, multiple o EMs are investing in p uebla to strengthen their electrification strategies. Volkswagen is investing in its plant in p uebla to boost the development of stamps and molds to support upcoming EV production of the brand and other global projects. This will also open the door to new job and education opportunities and will promote innovation and technology development.
“ p uebla seeks to become a national benchmark in innovation and technological development by promoting projects that boost the energy transition,” said Grimaldo.
SOLAR ENERGY STORAGE: ESSENTIAL FOR ENERGY TRANSITION
As the world transitions to cleaner energy sources, solar power has emerged as a popular option for reducing greenhouse gas emissions. However, solar power generation comes with its own set of challenges. o ne of the biggest obstacles is the intermittent nature of solar energy production due to fluctuations in weather conditions. To address this issue, energy storage has become an increasingly important component of solar energy systems, agreed industry experts.
“Mexico is going through a very important industrial growth. However, there is an issue regarding energy growth and problems related to it have appeared in certain regions of the country. Batteries and energy storage represent a great opportunity for the country. With the necessary technology and financing
instruments already available, regulation must catch up to take advantage of this energy storage opportunity,” said Carla ortiz, Country Manager, RER Energy Group.
Energy storage technologies allow solar energy systems to store excess electricity produced during periods of high solar radiation and release it during periods of low radiation. This helps to ensure a more reliable supply of energy, reduce dependence on fossil fuels and stabilize the electricity grid.
Storage can also help smooth out variations in how solar energy flows to the grid since intermittency poses a major challenge for network operators. These variations are attributable to changes in the amount of sunlight that shines onto photovoltaic (pV)
solar panels or concentrated solar-thermal power systems (CS p), according to the US Department of Energy. Storage can be colocated with or placed next to a solar energy system, although sometimes the storage system stands alone. In either configuration, it helps to integrate solar into the energy landscape more effectively.
Mexico’s grid struggles to keep up with the pace of renewable energy growth. The transmission and distribution system faces challenges in certain regions regarding oversaturation, causing interruptions and increasing the need for energy security. “Examining Mexico’s energy mix, energy storage would help to stabilize the grid, reduce the impact of intermittent renewable energy sources, decongest the grid and support the planet itself by significantly reducing greenhouse gas emissions,” said Óscar García, Chief Growth o fficer, Enlight. In recent years, the cost of energy storage technologies has dropped significantly, making them more accessible to businesses. “A sharp drop in prices has materialized. It is estimated that storing 1kWh will cost US$58 by 2030,” add ed García.
As countries and companies strive to meet their decarbonization goals, the integration of solar energy with energy storage will continue to grow in popularity in the coming years. “The combination of solar with energy storage presents a great business opportunity, and one that is poised to make a significant impact on the global energy landscape,” said patricia Tatto, Vice president Americas, ATA Renewables.
The most common type of energy storage in the grid is pumped hydropower, but there are other types of storage available, including electrochemical storage and thermal storage. The latter two are especially efficient in combination with different solar tech. Electrochemical storage, such as batteries, is commonly coupled with pV plants, while thermal storage, using fluids like water or molten salt, is paired with CSp plants. other storage types, such as compressed air and flywheels, offer unique characteristics like a rapid discharge or massive capacity. This makes them attractive to grid operators that need to balance tricky supply and demand curves, according to the US office of Energy Efficiency and Renewable Energy.
While battery storage is one of the most viable options to counteract the intermittency of renewable energy, the current regulatory framework in Mexico does not have a specific regulation for accumulated electrical energy. “The issue of batteries in solar energy depends on regulation, which greatly impacts business projections and funding,” said Ian De la Garza, CEo, finsolar. What is more, incentives to reward those bringing useful backup to the grid are lacking.
n evertheless, using solar and storage as a combination is often viable for offtakers looking to simply cut costs and boost their sustainability. Amid the global energy transition and considering the current growth of Mexico’s industries, companies that invest in energy storage now will be well-positioned to take advantage of this growing market and contribute to Mexico’s clean energy transition, concluded de la Garza.
