VIEW FROM THE TOP
ANTICIPATING REGULATORY CHANGES FOR RENEWED COMPETITIVENESS RAMÓN MORENO Chief Technical Officer of Mitsui & Co. Americas
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Q: What is the unique factor in Mitsui’s proposal for
Another problem brought about by an open energy market
Mexico’s renewable energy sector?
is the risk inherent to price signals emitted by the electric
A: Mitsui is not only involved in natural gas power generation.
node market. These short-term signals impact the design
We have a 3GW-strong portfolio of combined-cycle
of PRODESEN’s long-term infrastructure projects, which
power plants, making us the second-largest private power
need to be evenly distributed nationwide, as uneven
generator in the country. But we also jointly participate
infrastructure projects can impact renewable energy
with EDF Énergies Nouvelles México through a 50 percent
penetration across the country.
ownership in the operation of two wind farms in Oaxaca. We are analyzing the possibility of expanding our portfolio
Q: Within your diversification strategy, what are the key
in wind power and integrating PV power projects. Mitsui
requirements that ensure Mitsui’s involvement in a project?
has an undeniable comparative advantage in mastering
A: Mitsui is interested in projects that are sustainable over
combined cycle and natural gas technologies.
the mid to long term, with a solid ROI. We also take social impact seriously. If we are to be involved in a project, it
Q: How is Mitsui’s business contributing to the expansion
must generate added value for the people around it. This
of Mexico’s natural gas and electric infrastructure?
factor is key because any and every project is vulnerable
A: Traditionally, combined-cycle plants entail increasing the
to regulatory changes and political transitions, but social
intake capacity of the available pipeline. In the past, we
acceptance ensures the longevity of the project against
participated in pipeline infrastructure expansion projects.
these factors.
We remain open to that. Grid insufficiency is also an issue. Despite Mexico’s relatively low penetration of intermittent
Q: How is Mitsui facing the challenge of limited specialized
generation, the country urgently needs to deploy or facilitate
human capital in Mexico?
electricity demand-response mechanisms. Combined cycle
A: Electric generation outside of CFE, undertaken by private
helps to increase intermittent generation penetration to
investors, started back in 1999-2000 but that is a relatively
a degree that few other generation technologies allow.
short period of time to develop a highly trained technical
Usually, power supply adapts to power demand but
workforce, especially considering the technological
efficient and innovative power generation requires inverting
dynamism of the sector. The professionals involved in power
the equation. Mexico’s energy authorities and regulators
generation since that time are concentrated among the
need to strengthen the regulatory framework to ensure
few private players that tackled the combined cycle niche:
economically viable energy-storage initiatives.
Mitsui, Iberdrola, Gas Natural Fenosa and Intergen, to name a few. Renewable energy in Mexico is close to a blank slate
Mexico’s electric power scheme is well assembled, with
when it comes to trained professionals.
adequate power and energy-payment mechanisms. If you want to inject a higher portion of renewable energy
Mitsui’s human resource scheme consists of hiring young
into the country’s energy mix, with almost zero variable
professionals and focusing on their growth through quality
cost, combined cycle is the perfect supplement due to the
training programs. This allows us to maintain our working
system stability it provides.
culture, permeating generations. We keep a close eye on what Mexico’s academia is doing, the new educational programs that are being designed and the technical
Mitsui & Co. Americas is a 100 percent Mexican subsidiary of
professionals who are being trained. We would like to
Mitsui & Co. Its purpose is managing and developing power assets
contribute to developing a Mexican human capital pool
in the Americas. Mitsui & Co. is a global service and investment
that is highly specialized in the energy sector, eliminating
company with six business areas and 12 business units
the need to look for them abroad.
