On August 29, Mexico Energy Review along with Mexico Business Review and Mexico Business Events had the pleasure to welcome their exclusive guests to a special evening sponsored by Thermion. The theme of the night was Preparing for the Future of Energy… Right Now. The networking cocktail gave the intensive energy consumers that attended the networking cocktail the opportunity to fully understand the importance of having grid stability and competitive electricity prices through the input of renewable energy sources to comply with their current and future energy requirements in a sustainable way.
Just before our sponsor’s introduction, expert guest speaker, Lisa Henneberry, Chair of Energy and Natural Resources at Squire Patton Boggs, shared some relevant aspects of Mexico’s electricity market. During her presentation, Henneberry offered the attendees details on the most important elements to consider when selecting an electricity provider in the Mexican market. After an explanation of the Mexican electricity market’s evolution and operability, the attorney highlighted the costs involved in the tariff formula. She said that, considering that 70 percent of Mexico’s power generation is through conventional technologies that use oil-derived fuels, which are affected by price fluctuations related to international oil and gas prices, the need for using renewable energy sources to secure long-term stability in prices is quite clear.
“Oil-based technologies will become obsolete in Mexico as they have in the rest of the liberalized markets, and over time renewables will play a more important role in the market,” she continued. As she continued explaining other factors influencing electricity costs such as nodal congestion and the transmission and distribution infrastructure required to send the energy to where it is needed, it then becomes clear that intensive energy consumers must seek and compare different options of renewable energy sources so they can find the best one to complement their energy needs.
After our guest speaker’s opening speech, Michael Bax, CEO of Thermion, took the opportunity to thank all the exclusive guests for being part of the networking cocktail, and also took the time to share some insights on the Mexican electricity market. During his presentation, Bax explained how the mix of conventional and renewable energy sources are influencing electricity costs and highlighted the certainty that Mexico’s electricity supply could offer. “Be very careful when signing long-term contracts,” was his main recommendation.
After a wide explanation of upcoming technologies such as EVs and digitalization, Bax explained how new trends would impact the electricity market worldwide. After the Thermion CEO’s intervention, Mexico Energy Review took the opportunity to ask Bax what key factors intensive energy consumers should consider when selecting an energy provider. “Reliability to fulfill its promises, seriousness shown through its financial capacity, as well as its ability to offer competitive renewable projects are the key factors to consider,” he said. “Overall, the capacity of preventing uncertainties in the market affecting the client.” He then explained that “entering into a long-term agreement requires deep and thorough thought on both sides, and what Thermion provides as company is the capacity of creating an open and honest dialogue with the client to present what is best for its business.”
To close the evening on a high note, the exclusive guests had the opportunity to mingle and share their thoughts and build business relationships.
Once again, we take the opportunity to thank everyone for coming and hope to see our exclusive guests in our next networking cocktail, with the theme of Market Vision in the Energy Industry and Possible Scenarios in the New Political Environment, to be held on Sept. 12.
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