Polaris Renewable Energy was awarded three photovoltaic projects in the first call for bids under the mixed scheme with the Federal Electricity Commission (CFE), for approximately 200 MW in alternating current, and is already preparing its participation in the next rounds in Mexico.
Polaris Renewable Energy in Mexico told Energía Estratégica that the company will seek to significantly expand its presence in the country. " We have high confidence in our additional pipeline of mixed-use, priority, and stand-alone BESS projects that may significantly increase our pipeline ," they stated.
The projects awarded under the mixed scheme are Girasoles, Tres Hermanos, and Don Umberto. According to Polaris, Girasoles will have 110 MW of alternating current (AC) and 132.6 MW of direct current (DC) capacity and will be located in the Peninsular region. Tres Hermanos will have 75 MW of AC and 92.4 MW of DC capacity, in the Eastern region. Meanwhile, Don Umberto will reach 19 MW of AC and 25 MW of DC capacity, in the Northwest region.
All projects will incorporate BESS storage equivalent to 30% of the power and three hours of duration, a condition that allowed standardization of the bids within the process.
Polaris explained that it developed its proposal based on its internal financial and competitiveness evaluation criteria. The company sought to present an offer consistent with market conditions and its profitability objectives.
The economic component was an important factor in a competitive process. Polaris structured its proposal seeking to maintain a balance between competitiveness and financial discipline.
For the company, one of the most important aspects was defining the contractual framework for the mixed investment scheme. Polaris explained that the clarity regarding the terms of the model allowed for a more accurate evaluation of the project and confirmed that suitable conditions existed for the participation of private investors.
“ They really created an attractive and bankable structure ,” the company stated, adding that the entity built a fiscal, financial, and legal architecture capable of attracting international investment.
This bankability became the main incentive for expanding the company's presence in Mexico. " Having the assurance that it's a long-term PPA with an offtaker, which is CFE, in a scheme that is already bankable ," the company representative emphasized.
“It’s rapid growth. We’ve observed, along with various industry stakeholders, that the available capacity of EPC contractors will be a key aspect to manage as projects progress,” the company representative stated. He added that the availability of certain components will also require careful planning given the simultaneous execution of multiple projects.
The next focus for new calls for proposals: additional growth among mixed, private and BESS projects
The awarding of these three solar projects represents the first step in Polaris' strategy in Mexico. The company is already working on its participation in the second round of the mixed-use scheme , while maintaining projects in the priority generation tender and preparing stand-alone energy storage (BESS) initiatives, a segment it considers to have high potential for the Mexican electricity system.
Beyond photovoltaic generation, Polaris identifies growing opportunities in energy storage according to the administrative provisions (DACG) of the CNE for the integration of storage systems (SAEE) , the executive said, referring to the storage categories being prepared by the Mexican Government.
Headquartered in Toronto and listed on the Toronto Stock Exchange, Polaris Renewable Energy aims to solidify Mexico as its primary growth market in the coming years. The Canadian company, which specializes exclusively in developing renewable energy projects in Latin America, asserts that it has access to capital, experience in the region, and a strong environmental and social track record to support its expansion in the country.
" Mexico is going to be our biggest growth pillar for the company for the next 5 to 10 years ," the executive concluded.