Six Challenges to Prepare for When Navigating the Mexico Energy Market

As energy reform in Mexico shifts the market from public to private, providers will have an opportunity to expand and grow their business like never before. While the shift from a public to private market is exciting, it isn’t without its obstacles. If you’re thinking about entering the Mexico Energy Market, make sure you are prepared to tackle these six challenges:

1. Participating in the Market
All market participants need to be able to properly prepare, review, approve, and submit bids to the Mexico market before the market submission deadlines. In addition, receiving corresponding awards from the market and viewing the market position of your trade portfolio is essential to maintaining control of your activities within the market.

2. Conducting Market Settlements
Market participants must reconcile business performed in the market and identify potential discrepancies in a timely fashion. Currently, millions of dollars in discrepancies are missed by customers who are navigating newly formed markets without sufficient shadow settlement processes.

3. Optimizing Market Bidding for Maximum Profitability
Minimizing potential revenue losses can be challenging without data driven analytics. Energy markets are ever changing, and market participants need easy access to detailed data to help them obtain awards and achieve the best possible revenue outcome for their bidding assets.
4. Supporting Legacy Contracts
As the market transitions from public to private, the importance of supporting both legacy and non-legacy contracts cannot be overstated. Without the ability to track all types of business, companies can put themselves at risk for overselling or being too conservative in the market.

5. Protecting Your Assets
Many businesses navigating the new Mexico Energy Market are not prepared to protect themselves from unexpected market shifts. Without the ability to properly represent and protect their business portfolio, and quickly adjust their company’s business strategy due to unforeseen market changes or actions, they expose the value of their portfolio in a significant way.
6. Managing Clean Energy Certificates
Mexico Energy Market participants will be accountable for making sure their company meets the required load obligation percentage to be provided by generation from clean energy sources. It is important they are able to track and manage their portfolio of renewable energy certificates year-round to avoid high penalties for non-compliance obligations.

If you’re looking to enter the Mexico Energy Market, I encourage you to visit to learn about the tools we have in place to tackle these challenges and to support your future market efforts.

About the Author:
Dr. Manuel Santos has more than 30 years of experience developing and implementing power system applications and managing projects. As Senior Vice President of Sales and Product Strategy at OATI, Santos oversees strategy for new and existing sales accounts, as well as coordinating all existing OATI product roadmaps and identifying of new applications needed in the energy industry. His experience includes 13 years with Siemens Power Systems Control and three years with the Mexican Electrical Research Institute.