Mexico Power Market Deregulation: Opportunities and Challenges
By Callie Cady, Marketing Communications Manager
The world continues to watch as the deregulation of Mexico’s energy market unfolds, with the goal being to completely reshape the nation’s infrastructure to meet the needs of its citizens and businesses for the decades ahead.
Prior to the Mexican power reform movement, the nation’s government-run entities, Pemex and the Comisión Federal de Electricidad, were, essentially, the entirety of the country’s energy market. But now, after some eight decades without private enterprise, change is everywhere, and with it, a quest for greater efficiency, new investments and upgraded infrastructure.
The Mexican government’s moves to deregulate the market have encouraged those hopeful about economic growth and a much-needed infrastructure improvement, providing potential opportunities for private investors and companies to capture a part of the market. However, as privatization takes hold where government-operated entities were once in power, the outlook for energy pricing and the effect of the new structure on Mexico’s commercial, industrial and residential consumers are still unknown.
Michael Hinton, Chief Strategy & Customer Officer here at Allegro, recently took to Distributed Energy to discuss his insights on both the opportunities and the C&I customer challenges the reform is presenting. While the enthusiasm for investors seeking involvement in Mexico’s deregulation is high, he anticipates there will be some growing pains as the market evolves. Read on to get his perspective.