+52 (867) 7240420, +1 (956) 242 7744 Tracking May 29, 2020

Energy efficiency as a strategy of advance


By: María Jose Treviño

Evolution is inevitable. Change is irrefutable. In order to remain economically sane and competitively stable, we must endure change as individuals and as corporations, adapting to our country’s economics. Mexico has one of the highest electricity rates in the world. Adopting the concept of energy efficiency is our sole clear strategy that can impulse success in the micro and macro worlds. Energy efficiency refers to utilizing less energy while achieving the same output, using equipment that consumes power. This in turn, will reduce the amount of greenhouse gases that disperse into the atmosphere, will evidently deliver cosmic economic benefits. Mexico has established a goal to raise total generation capacity of green technologies to 35% by 2024. 1 The CONUEE2 designed a program to impulse municipalities to integrate this approach by replacing conventional light poles with ones of higher productivity. As a result, modernizing public lighting gives the local governments an opportunity to strengthen their public finances.

There are more and more funds, such as FIDE, destined to provide support for individuals who would like to add solar panels to their homes. As people become more educated of the advantages of acquiring new technologies, construction of homes and buildings are beginning to be green built, implementing LEED concepts. As a consequence of Mexico’s recent Energy Reform, companies such as industrials, who consume significant amount of energy, will now be forced to expend a percentage of clean energy. Some of their options are integrating in a renewable energy project in a self-sufficiency scheme, Power Purchase Agreement or purchasing Clean Energy Certificates. The government is impelling this custom of EE that is currently very popular in most developed countries and offering incentives such as accumulation of energy surpluses, accelerated depreciation of equipment, exemption of tariffs for importing and exporting of equipment and parts. As a cause of elevated oil prices and constantly increasing electricity rates, these dynamics for EE are reshaping the industry, arousing competition in technology, competition in processes, competition in keeping up with the irrefutable and ongoing change, competition for lower prices, competition for clients and a drive to develop new capabilities. The strategy has proven to have a mechanical effect, as it is a motor for innovation, a proclivity for creativity of the human capital in the education for process adjustments, and an impulse for economic growth as a business and as a market. As a country, EE is clearly also being targeted with the creation of the mentioned Reform’s strategy of allowing private foreign corporations to enter the market, contributing capital, bringing in technology, sharing risk and in turn aiding PEMEX in producing hydrocarbons at a lower cost. Mexico currently imports 49% of processed oil that consumers use, 33% of gas due to the underproduction, and 65% of petrochemicals. By inviting third parties to participate in the market, exploring and extracting Mexico’s reserves, incentivizing industrials, and implementing the Energy Reform’s regulations, the country remains competitive worldwide, constantly achieving the Energy Efficiency ideal.

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