How to buy energy in Mexico on the verge of liberalization


The Mexican energy market is currently going through a liberalization process. Electricity consumers currently pay a regulated tariff which is lower than the cost of producing electricity. The government wants to get rid of this deficit by increasing the tariff and opening up the market for competition. It hopes that the liberalization will bring lower prices. In a country that faces huge infrastructure problems, conducting a successful market deregulation will be challenging. Like many other countries, Mexico also hopes extra MWh’s to be produced from renewable energy. Will Mexico see the combination of deregulation and renewable energy boom that caused power prices to fall in other countries? Or will Mexico’s infrastructure issues lead to price increases? 

In the gas market and the market of gas-fired power stations, there are good hopes that opening up the market will lead to lower prices due to imports of shale gas from the US. Will that pass with Donald Trump in the White House? 

Large consumers of energy in Mexico are being approached with long term agreements. Are they a good remedy for the uncertainty? Or is it a bad idea to tie yourself to a contract when markets are opening up? 

In this 30 minute webinar, E&C will update you on: 

  • The supply and demand situation in Mexico, 
  • The status of the market liberalization in Mexico, 
  • The contracts that are currently proposed, 
  • Ideas on what strategies you can adopt. 

Feel free to reach out to our marketing department via Joke Bruneel in case you'd have questions, a request or feedback.