Mexico has once again positioned itself among the top commercial priorities for the global photovoltaic industry. Despite the continued weakness of its electricity transmission infrastructure, which remains one of the biggest challenges for the development of new projects, Yingli Solar asserts that the country has once again become one of the most important destinations within its commercial pipeline.
"Among the largest quotes we are currently making, many of them are in Mexico," revealed Luis Contreras, CEO of Yingli Solar for Europe and Latin America, during his participation in the Future Energy Summit (FES) Mexico , where he also maintained that the potential of the Mexican market outweighs the uncertainties that still exist in terms of electrical infrastructure.
"What we are seeing is a direct flight to the Mexican market, especially in large utilities that are going to very large projects and volumes, beyond the uncertainties that may exist or the problems that may exist in transmission," Contreras added.
The executive also warned that the renewed interest no longer comes solely from new entrants, but from players who years ago had decided to withdraw from the Mexican market but are now gradually returning.
The signal takes on even greater significance considering the company's current situation. As Contreras recently revealed in an interview with Energía Estratégica, Yingli Solar is expanding its horizontal integration strategy by entering the energy storage business, adding batteries to its portfolio of solutions to complement its leadership in photovoltaic modules.
"It is clear that the photovoltaic module is the company's core business, but we need to evolve and the clear business line for evolution is the battery," the executive explained when announcing the company's new strategy.
Beyond price: what are major developers looking for today?
During the panel, Contreras also explained what factors currently define the selection of a supplier for utility-scale projects.
"People always start talking about price," he noted. However, he asserted that other factors quickly emerge that are equally or even more important to developers.
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Then there's the manufacturer's financial strength, a key aspect for backing warranties that last for decades. "You have to be able to back a warranty for 30 years," Contreras explained.
Once that stage is overcome, the focus shifts to the technological quality of the module , the accuracy of the PAN file (Photovoltaic Array Network file) , the ability to reduce the levelized cost of energy (LCOE), logistical optimization, and after-sales support.
Mexico faces a historic opportunity
Despite the limitations that the transmission infrastructure still presents, Contreras believes that Mexico has unique conditions to accelerate the development of renewable projects.
"We are in a market situation like never before seen in terms of equipment cost competitiveness, where all manufacturers have reduced costs in a dizzying way in parallel with an overwhelming improvement in technology throughout the supply chain," he argues.
Unlike other markets that went through a learning curve with errors in the design and development of projects, the executive understands that Mexico arrives at a more favorable time to take advantage of that accumulated experience .
"If market players look at what has happened in other markets, especially the mistakes that have been made, here we can bring projects that are designed from the beginning in the smartest and most efficient way possible, that are robust, financeable and bankable, and that will operate in the long term," he says.
The context supports this view. Mexico continues to hold open calls for proposals promoted by the Ministry of Energy (SENER) for renewable energy generation and storage projects , whose schedules were recently adjusted to give developers more time.
These initiatives are in addition to the mixed generation scheme , in which around 7,400 MW were awarded and which is part of a pipeline of more than 11 GW of projects awarded during the last year , consolidating an investment portfolio that is once again attracting the interest of international manufacturers, utilities and developers.
In that context, Contreras concluded the current state of the Mexican market with a resounding statement: " There is a tremendous opportunity here in this market ."