While Mexico seeks to accelerate the development of new electrical capacity to meet growing demand, 360 Energy is betting on a strategy it has already tested in other markets in the region.
After signing a PPA contract to develop the 20 MW Saltillo Complex, the Argentine company seeks to replicate in the country a self-supply model that it has already implemented for Stellantis in Argentina and Brazil, convinced that it can offer a faster solution to the challenges of energy transmission and supply.
“We installed two self-supply projects in Argentina last year and this year. One project with Stellantis is 12 MW, the largest in South America, which will be replaced by our 14 MW project, also with Stellantis, in Brazil. We keep improving,” said Edwin King , commercial manager of 360 Energy, during the Future Energy Summit (FES) Mexico .
"This year we will also enable three more self-supply projects in Brazil. Since we signed the contract, they are already delivering energy in a year and a half, which is why we believe it is a quick, effective and feasible solution that can also be applied to the Mexican market," he added.
The strategy is based on experience gained in the three markets where it operates and on a scheme that, according to the company, allows the plants to start delivering energy in about a year and a half from the signing of the contract.
"We see a very interesting growth in demand in Mexico, a very significant need for energy. Generation sites are far from where the demand is, and self-supply is an interesting solution," he said.
“There are large industries that are looking for that business model: the possibility of having energy to power their factory, supply voltage, improve the node, achieve security of supply, not being tied to the price fluctuations that may exist in the world and trying to capture some of the energy on the site where it is located,” the executive stressed.
Mexico, the next market to scale the self-supply model
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Beyond the development of the Saltillo Complex, 360 Energy affirms that its commitment to Mexico is part of a long-term strategy. The goal is to consolidate a long-term presence, expand its portfolio of industrial clients, and, in a second phase, evaluate opportunities in both the open market and the state-owned sector.
"We are going to have a solid product at the self-supply level that we will be able to replicate," he stated.
However, King acknowledged that the main challenge to expanding this model remains the regulatory framework. Although progress has been made, adapting the self-supply scheme to the specific characteristics of the Mexican market will be key to accelerating its implementation.
"We are doing very precise, very detailed work to be able to replicate this product in other companies and to make this self-supply something replicable in the short term," he said.
Regional experience as a competitive advantage
For 360 Energy, the experience gained in Argentina and Brazil demonstrates that, beyond regulatory differences, the structural challenges of Latin American electricity markets are similar. According to King, the main limitation continues to be transmission capacity, a bottleneck that drives the development of distributed generation and self-supply solutions.
"We realized that the problem is the same for everyone. All three countries have transport capacity problems. The transport infrastructure that the State needs to expand isn't doing so at the speed that projects need to be implemented. The technical and economic problems are the same and are solved in the same way. What needs to be addressed differently is the regulation," he explained.
That experience, the executive affirms, allowed the company to develop a comprehensive model that covers all stages of the project, from acquiring the land and permits to the engineering, construction, and operation of the plants. This support is especially relevant in a market like Mexico, where industries face a complex and ever-changing regulatory environment.
"At 360, we're fully integrated: we handle everything from site selection and design to construction and operation. We do it all, and the permitting process is crucial within that chain. The industry knows how to manufacture bicycles, cars, and refrigerators, but when it comes to regulations, it's difficult to understand. That's where we can provide a great deal of assurance that the project will be successful," King concluded.