{"id":50627,"date":"2019-08-19T12:48:28","date_gmt":"2019-08-19T12:48:28","guid":{"rendered":"http:\/\/www.alj.com\/?post_type=perspective&#038;p=50627"},"modified":"2022-05-05T06:57:27","modified_gmt":"2022-05-05T06:57:27","slug":"a-cleaner-stronger-energy-future-dawning-for-mexico","status":"publish","type":"perspective","link":"https:\/\/alj.com\/en\/perspective\/a-cleaner-stronger-energy-future-dawning-for-mexico\/","title":{"rendered":"A cleaner, stronger energy future dawning for Mexico"},"content":{"rendered":"<p>The potential for <a href=\"https:\/\/www.alj.com\/en\/energy-and-environmental-services\/energy-overview\/\">renewable energy<\/a> across the Latin American region is clear, with its sunny climate and favorable wind conditions making it an ideal location for solar and <a href=\"https:\/\/alj.com\/en\/energy-and-environmental-services\/wind-power-solutions\/\">wind energy<\/a> projects.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignleft wp-image-50628 size-medium\" src=\"https:\/\/www.alj.com\/app\/uploads\/2019\/08\/Irena-300x112.png\" alt=\"International Renewable Energy Agency\" width=\"300\" height=\"112\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Irena-300x112.png 300w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Irena-150x56.png 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Irena.png 455w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Mexico, in particular, is highlighted as one of the countries with the best solar resources in the world<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>.\u00a0 The International Renewable Energy Agency also recognizes Mexico\u2019s potential<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a>.\u00a0 It says:\u00a0 <em>\u201cMexico has a large and diverse renewable energy resource base. \u00a0Given the right mix of policies, Mexico has the potential to attract large-scale investment in renewables that can help diversify its energy supply. \u00a0Increased renewable energy use would also set Mexico on a pathway toward significantly reducing its greenhouse gas emissions.\u201d<\/em><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-50635 size-full\" src=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-map.png\" alt=\"Mexico Map\" width=\"900\" height=\"725\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-map.png 900w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-map-150x121.png 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-map-300x242.png 300w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-map-768x619.png 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p>\n<p>Since 2015, three long-term auctions have seen around 5GW of solar generation capacity awarded across Mexico<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a>.\u00a0 Abdul Latif Jameel Energy, through its Fotowatio Renewable Ventures (<a href=\"https:\/\/frv.com\">FRV<\/a>), is also making a significant impact through the development of its first two solar photovoltaic developments in the country.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-50642\" src=\"https:\/\/www.alj.com\/app\/uploads\/2019\/08\/Solar-plaza.jpg\" alt=\"Solar Plaza\" width=\"854\" height=\"488\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Solar-plaza.jpg 700w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Solar-plaza-150x86.jpg 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Solar-plaza-300x171.jpg 300w\" sizes=\"(max-width: 854px) 100vw, 854px\" \/><\/p>\n<p>FRV\u2019s Potosi solar plant, in San Luis de Potosi, began operations earlier this year.\u00a0 It will generate 815,000 MWh annually and provide enough energy to supply more than 76,000 homes.\u00a0 It will reduce Mexico\u2019s CO<sub>2<\/sub> emissions by almost 98 million tons per year.\u00a0 FRV\u2019s second plant, the Potrero PV plant in Jalisco, will generate 750,000 MWh per year when it is completed in 2020.\u00a0 It will supply 128,000 homes and reduce CO<sub>2<\/sub> emissions by some 437,000 tons.\u00a0<\/p>\n<p><iframe loading=\"lazy\" title=\"Abdul Latif Jameel Energy: Potrero Solar, Mexico (EN 16:9)\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/L7GGeb1Gj18?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>Both these projects have been accompanied by pioneering social development programs initiated by FRV.<\/p>\n<figure id=\"attachment_50649\" aria-describedby=\"caption-attachment-50649\" style=\"width: 200px\" class=\"wp-caption alignleft\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-50649 size-medium\" src=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Fernando-200x300.jpg\" alt=\"Fernando\" width=\"200\" height=\"300\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Fernando-200x300.jpg 200w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Fernando-100x150.jpg 100w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Fernando-768x1150.jpg 768w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Fernando-684x1024.jpg 684w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Fernando.jpg 1669w\" sizes=\"(max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-50649\" class=\"wp-caption-text\"><span style=\"font-size: 10px;\">Fernando Salinas Loring Managing Director FRV Mexico &amp; Central America<\/span><\/figcaption><\/figure>\n<p>Fernando Salinas Loring, Managing Director of FRV (Mexico and Central America), spoke to Abdul Latif Jameel <strong><em>Insights<\/em><\/strong> to discuss the Mexican energy market, progress on FRV\u2019s latest installations, and his plans for the future as he bids to help lead the transformation of Mexico into a clean energy leader.<\/p>\n<p><strong>How do you assess the current situation and potential of the Mexican energy industry?<\/strong><\/p>\n<p>We had a change of government in December 2018, and with it came a change of many policies as well. \u00a0The new government has confirmed that the renewable energy target of 35% by 2024, remains in place \u2013 which is very important. \u00a0However, it is reviewing the way the prior government was promoting renewables and is reassessing the whole area, looking to promote renewables in another way.<\/p>\n<p>The most important thing is that as of today, 24% of our energy is provided by clean energy. \u00a0We need to get to 35% in the next five years (2024), but how it will be achieved isn\u2019t clear yet.\u00a0 This provides big opportunities for companies such as FRV.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-50656 aligncenter\" src=\"https:\/\/www.alj.com\/app\/uploads\/2019\/08\/Mexico-renewable-energy-installations.jpg\" alt=\"\" width=\"1300\" height=\"903\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-renewable-energy-installations.jpg 1300w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-renewable-energy-installations-150x104.jpg 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-renewable-energy-installations-300x208.jpg 300w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-renewable-energy-installations-768x533.jpg 768w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Mexico-renewable-energy-installations-1024x711.jpg 1024w\" sizes=\"(max-width: 1300px) 100vw, 1300px\" \/><\/p>\n<p><strong>Is 35% renewable energy by 2024, a realistic target? \u00a0Is it a target the industry can get behind?<\/strong><\/p>\n<p>Yes. \u00a0The government has reconfirmed the policy, and developments like our Potrero project are helping to drive forward the industry\u2019s performance. \u00a0Potrero is very innovative in that it is structured on a non-contractual basis, which means we don\u2019t have a contract with the government to sell the energy. \u00a0Instead, we will have the option sell the energy to either private parties or government entities. \u00a0This kind of private investment and innovation will be crucial if we are going to have a realistic chance of achieving the 35% target. \u00a0It\u2019s not going to be easy, but it can be done.<\/p>\n<p><strong>What\u2019s the overall mix between wind and solar within the renewables sector in Mexico? \u00a0<\/strong><\/p>\n<p>Right now, there\u2019s a bigger proportion of wind (12.4 GW) than solar (2.2 GW). \u00a0Solar has been growing faster over the last year, but wind technology arrived here about six years ago. \u00a0It\u2019s been here longer, so there is more of it. \u00a0But solar is now beginning to catch up.<\/p>\n<p><strong>Is there widespread public recognition of the need for renewables?<\/strong><\/p>\n<p>Absolutely. \u00a0The sentiment we\u2019re seeing, not just in Mexico but also across the wider region, is concern about climate change. \u00a0An overarching majority of the population sees climate change as a major issue. \u00a0People are also thinking about the wellbeing of our communities and cities. \u00a0Mobility, and particularly electric vehicles, are creeping up the agenda, so the distribution of <a href=\"https:\/\/www.alj.com\/en\/energy-and-environmental-services\/solar-power-solutions\/\">solar energy<\/a> will also be key. \u00a0People understand that it\u2019s becoming increasingly important to think about how we produce and consume energy on a day-to-day basis. \u00a0Renewable energy is a huge factor within all these considerations.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-50663 size-full\" src=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/World-energy-issues.png\" alt=\"World Energy Issues Chart\" width=\"1053\" height=\"697\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/World-energy-issues.png 1053w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/World-energy-issues-150x99.png 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/World-energy-issues-300x199.png 300w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/World-energy-issues-768x508.png 768w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/World-energy-issues-1024x678.png 1024w\" sizes=\"(max-width: 1053px) 100vw, 1053px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>How are the projects in San Potosi and Potrero progressing?<\/strong><\/p>\n<p>Both projects are on track and performing well. \u00a0The Potosi solar (342 MWdc) planet began operations on May 11, 2019. \u00a0It is currently working at full capacity and successfully generating energy for the Mexican electricity market. \u00a0This has been a very important project for us. \u00a0It\u2019s our first in Mexico, and it\u2019s been a great investment.<\/p>\n<p>On the Potrero plant (296 MWdc), we reached financial close on March 8, 2019. \u00a0We started construction in early May 2019 and we are aiming to have the plant in operation by early July 2020, after just 14 or 15 months of construction work.<\/p>\n<p>With these two projects, we\u2019ve installed a total of 640MW of capacity in a Mexican market currently holding around 73,000 MW. \u00a0We started operations here four years ago and now represent 0.8% of installed capacity in the market, so we have grown to become a relevant player in a very short period of time.<\/p>\n<p><strong>Could the government introduce any initiatives to help move renewables forward even further? <\/strong><\/p>\n<p>The most important thing, not just for Mexico but for every country, is that we need policies that reassure and encourage shareholders and investors. \u00a0There needs to be a stable environment in which investments make sense. \u00a0Beyond that, there are many ways to incentivize the renewables sector. \u00a0But first and foremost, you need a stable environment and long-term government policies that are not up for re-approval every time there is a change of government.\u00a0 This creates confidence that you can bank your assets for the long term.<\/p>\n<p><strong>Beyond energy production at the Potosi and Potrero plants, FRV has also been active in delivering social benefits to local communities. \u00a0Can you tell us more about this? <\/strong><\/p>\n<p>Yes, this is a very important area for us. \u00a0Typically, solar plants are located in remote rural areas, where local communities struggle with under-investment in facilities and infrastructure, like schools, healthcare and community facilities. \u00a0We believe in giving something back to these communities by helping to address these kinds of issues.<\/p>\n<p>In Potosi, for example, we built a fence around the cemetery, we built a baseball area with spectator seats, and we have been painting and providing materials for the school, including repairing windows, doors and the communal eating area. \u00a0This is very important, because the school didn\u2019t have functioning windows and doors, so in winter children were not attending because it was simply too cold. \u00a0We\u2019ve also been holding some workshops for entrepreneurial women and we have helped some of them in starting their own local initiatives. \u00a0<\/p>\n<p>In Potrero, we have just started our social program. \u00a0We\u2019re doing some work with the school there, too, taking the students to see the plant and giving them so know-how about its operations. \u00a0We\u2019re also putting together a medical center that operates 12 hours a day.\u00a0 This means there is a doctor every day for the community, and we also provide the materials for the antibiotics and other medical needs.\u00a0 There is lots more to come in the near future.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-51089 size-full\" src=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/PTR-Medico-5.jpeg\" alt=\"FRV Representative with Antibiotics &amp; Other Medical Needs\" width=\"854\" height=\"640\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/PTR-Medico-5.jpeg 854w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/PTR-Medico-5-150x112.jpeg 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/PTR-Medico-5-300x225.jpeg 300w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/PTR-Medico-5-768x576.jpeg 768w\" sizes=\"(max-width: 854px) 100vw, 854px\" \/><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-51096\" src=\"https:\/\/www.alj.com\/app\/uploads\/2019\/08\/PTR-Escuelas.jpeg\" alt=\"Social Program for Children\" width=\"854\" height=\"641\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/PTR-Escuelas.jpeg 633w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/PTR-Escuelas-150x113.jpeg 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/PTR-Escuelas-300x225.jpeg 300w\" sizes=\"(max-width: 854px) 100vw, 854px\" \/><\/p>\n<p>We have 10-20 initiatives like this that we\u2019re working on, and our plan is to dedicate US$ 50,000 per year to our community actions. \u00a0It might not sound like a big number, but it\u2019s huge for these communities. \u00a0With an investment of that size, we can do many, many things.\u00a0 We are not the government: we cannot do everything.\u00a0 But I think we can assume some responsibility and help them to develop themselves.<\/p>\n<p><strong>What has been the reaction from these communities?<\/strong><\/p>\n<p>It has been very positive.\u00a0 The communities have been very appreciative for the support and investment we\u2019ve provided. \u00a0From their perspective, it is very unjust if they see a world-class solar facility being developed on their doorstep, but their school has no doors or windows.\u00a0 And it makes no sense for us, as we depend on the support of these local communities, too.\u00a0 We are proud to be making a contribution to improving their lives and their opportunities.\u00a0<\/p>\n<p><strong>What are FRV\u2019s hopes and ambitions over the next five to 10 years?<\/strong><\/p>\n<p>We have a progression plan in place.\u00a0 We want to keep developing assets and secure our place as one of the market leaders in Mexico\u2019s renewable energy sector.\u00a0 It is an aggressive growth plan.<\/p>\n<p>Energy demand is growing 3% each year in Mexico and some regions already have difficulty meeting the demand for energy.\u00a0 The country will need to combine renewable energy and conventional energy in order to avoid potential problems in future.\u00a0 But Mexico is a huge country \u2013 there are 130 million people here \u2013 and if you look at the big picture, it\u2019s clear there will certainly be lots of opportunities.\u00a0 We are looking forward to staying here, taking advantage of those opportunities and helping to deliver a cleaner energy mix for Mexico\u2019s future.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-50670\" src=\"https:\/\/www.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-1.png\" alt=\"Potosi Solar Plant\" width=\"1016\" height=\"558\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-1.png 1255w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-1-150x82.png 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-1-300x165.png 300w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-1-768x422.png 768w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-1-1024x562.png 1024w\" sizes=\"(max-width: 1016px) 100vw, 1016px\" \/><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone wp-image-50677\" src=\"https:\/\/www.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-2.png\" alt=\"Potosi Solar Plant\" width=\"1016\" height=\"558\" srcset=\"https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-2.png 1016w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-2-150x82.png 150w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-2-300x165.png 300w, https:\/\/media.alj.com\/app\/uploads\/2019\/08\/Potosi-solar-plant-2-768x422.png 768w\" sizes=\"(max-width: 1016px) 100vw, 1016px\" \/> <span style=\"font-size: 10px;\">FRV\u2019s Potosi solar plant, in San Luis de Potosi, began operations earlier this year. It will generate 815,000 MWh annually and provide enough energy to supply more than 76,000 homes<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> <a href=\"https:\/\/www.greentechmedia.com\/articles\/read\/sunny-mexico-an-energy-opportunity#gs.sgf8hn\">Sunny Mexico: An Energy Opportunity<\/a>, GreenTechMedia, 7 July 2010<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> <a>Renewable Energy Prospects: Mexico<\/a>, IRENA, May 2015<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> <a href=\"https:\/\/www.solarplaza.com\/channels\/markets\/11964\/will-mexicos-new-government-stymie-solar-growth\/\">Will Mexico\u2019s new government stymie solar growth?<\/a> Solar Plaza, 9 January 2019<\/p>\n","protected":false},"author":18,"featured_media":51113,"template":"","tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Cleaner, Stronger Energy Future for 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