Meet the Speaker
What is your main goal for 2020?
We aim to complete the private auction with a successful assignment of contracts between generators and load serving entities. Additionally, we will continue to strengthen our operational services and market intelligence services.
Can you give a brief overview of Bravos Energia in Mexico?
Bravos Energía helps generators, retailers, power marketers and large users participate and succeed in the Mexican Wholesale Power Market. We provide routine operations services, such as daily offer submission, 24/7 desk staffing, billing conciliation and invoicing, as well as value-added market intelligence through price forecasts and analysis. Additionally, Bravos Energía is organizing the first private auction for long term contracts in the Mexican Power Market.
What are your client’s main challenges in Mexico they come to you for help with?
The participants in our private auctions are driven by the need for a competitive, transparent, and efficient process; their challenge has been the complexity and cost of carrying out an individual search for bilateral contracts. Our operational clients have come to us because they need flawless execution in the wholesale power market, and it is far more cost-effective to work with a specialized team of market operators, than to build and maintain a 24/7 operation with internal resources. And our market intelligence clients have identified that not all price forecasts are built on thorough knowledge and investigation of conditions in Mexico; Bravos Energía has invested significant time and resources into developing the most complete information and understanding of the market, which allows our clients to have confidence in the results we produce.
Do you feel that the cancellation of the energy bid rounds have affected you? If so, how?
Even before the cancellation of the auctions that were dedicated to CFE Basic Supply, a number of our customers had requested help in organizing RFPs for long term power contracts, and we had identified the need for a consolidated process that would allow multiple buyers and sellers to compete in a single process, assuring a diversified portfolio and lower costs of operation. Since the cancellation, market participants have only become more appreciative of those benefits.
What do you feel is the main challenge with regards to investing in power in Mexico?
Since the beginning of the market 4 years ago, investors and market participants have needed more data in order to accurately forecast prices and quantify risks. Additionally, in the current environment a number of policy changes are under consideration. Both of these factors add to uncertainty and raise the difficulty of investing.
What advice would you give to someone thinking of entering Mexico’s energy market?
The Mexican Power Market has a number of complexities, ranging from the factors that contribute to market prices, the requirements for operation, dynamics in the secondary market, and the potential for regulatory changes. It is important, for any future market participant, to find support from experts that are knowledgeable on local conditions, and to carefully evaluate the risks and unknowns before taking the leap.
Jeff Pavlovic will be speaking on the OPPORTUNITIES IN MEXICO´S POWER, RENEWABLES AND INFRASTRUCTURE MARKETS panel at the 2020 Mexico Assembly. The panel will be a discussion with the industry around the government’s plans for the renewables and electricity market.
Director, Bravos Energia
Vice-President, Macquarie Infrastructure and Real Asset
Paul Centeno Lappas
Mexico General Manger, Neoen