| VIEW FROM THE TOP
TRADING ON THE WHOLESALE ELECTRICITY MARKET FRANCISCO SALAZAR Founding Partner of Enix
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Q: What is the most frequently-asked question Enix
to be addressed. As a result, there have been several cases
receives from clients?
where there was no regulation or the existing one was unclear
A: Project developers ask many questions when requesting
or contradictory. Based on our experience in designing
our services, but the prevalent ones are related to project
regulation we were able to help our customers to present
profitability and the best strategy to accomplish objectives
proposals to CRE that eventually became new regulation.
while effectively complying with the regulation in place. We are participating in many projects that are the first of
Q: How would you rate the evolution of the clean
their kind in terms of technology, applicable regulation and
energy industry in Mexico and the diversification of its
business modeling. These projects are very interesting since
energy matrix?
they require a clear understanding of the regulation and
A: The clean energy industry in Mexico is thriving,
a proper ability to interpret it, even though there may be
particularly with wind and solar projects. Nevertheless,
some legal gaps and an understanding of the implications
there are other renewable resources, such as biomass,
of these interpretations and gaps. The Energy Reform
geothermal and hydroelectric, that even if they are mature
certainly brought with it a liberalized business spirit and
in terms of technology will still need some kind of support
creativity in Mexico for companies to venture into new areas
to make their introduction feasible against the aggressive
and we are prepared to help them become successful.
cost structures of wind and solar generation projects.
Q: Why should a company depend on Enix to solve the
So far, these renewable resources can only compete in
regulatory issues they may face?
some market niches. Energy policy and regulation could
A: Every company must always keep in mind all the aspects
become a tool to spread them beyond these market niches.
of the regulation that relates to its activities. But this is
In this regard, some people are calling for specific auctions
not always easy because regulation in the energy industry
for these energies, instead of being completely agnostic
is abundant and complex, and some companies do not
in the technology area. This is open to debate, but in the
have the knowledge or the experience to understand
meantime, since the Ministry of Energy decided to follow
such complexity. At Enix, the long professional career of
a technology-neutral approach for the auctions, we should
the partners and our associates gives us that knowledge:
explore schemes by which these technologies can widen
Enix is capable of fully understanding the regulation and
their presence and have a competitive advantage. These
all its implications, which gives us the ability to offer both
would include fiscal incentives or a certain degree of
conventional and outside-the-box regulatory solutions.
regulatory flexibility.
Q: What success story demonstrates the added value
Q: How does the postponement of the fourth long-term
Enix can offer to the Mexican energy industry and its
electricity auction affect your clients and how do you
participants?
expect the situation to play out in the future?
A: At Enix, we pride ourselves on our proactivity when
A: The postponement of this auction certainly introduces
helping clients. For instance, in a new energy market, the
uncertainty. However, I have hope that the new administration
regulation is still unfolding and there are many questions left
will soon find out that these auctions, although perhaps in need of a little fine tuning, are very beneficial for CFE and for the Mexican electricity market. This ultimately impacts
Enix is a specialized consulting company with a focus on
positively on the end users, who are the Mexican people.
project development and regulatory advisory for the energy sector. Its dynamism and complexity have multiplied with the
Q: What role will CFE play in the future of the Mexican
enactment of the Energy Reform
electricity industry?
