Renewable Generation and Battery Storage Offer Stability and Competitive Edge
Hybrid energy self-consumption, combining renewable generation like solar photovoltaic with battery storage systems (BESS), has emerged as a strategy for industrial facilities to achieve operational autonomy.
Facing volatile energy prices, supply bottlenecks, and increasing regulatory pressure for decarbonization, the sector seeks solutions ensuring operational continuity and cost control.
Greening’s Analysis Highlights Benefits of Hybrid Models
According to Greening, a specialized firm, industrial installations adopting these models achieve stable energy flow, resulting in fewer unexpected shutdowns, increased productivity, and a competitive advantage. The International Energy Agency (IEA) reported a 30% growth in global solar generation in 2024.
“In an environment where electric system stability faces challenges, companies require greater energy autonomy. Solar photovoltaic self-consumption installations are an effective response to this need,” said José María Galdón, General Director of Greening Mexico.
This trend aligns with government plans: the National System Strengthening and Expansion Plan (2025-2030) includes over USD 22 billion in investments, including renewable generation projects.
However, the same plan acknowledges that public investment alone won’t be enough. The private sector is estimated to have a potential of integrating between 6,400 and 9,550 MW of clean energy capacity.
Power Purchase Agreements as an Alternative
Hybrid generation systems can be implemented through Power Purchase Agreements (PPA). These schemes provide certified renewable energy sources to companies at a more attractive price than the current market in Mexico.
Under this arrangement, the energy provider takes responsibility for designing, managing permits, financing, installing, and operating a solar generation plant within the beneficiary company’s facilities.
In return, the company commits to purchasing the generated energy for a predefined contractual period, which can extend from 12 to 15 years or more.
“Nearshoring has accelerated the need for reliable energy solutions. Now, we must respond. The Mexican industry faces a critical dilemma: continue with traditional energy models exposed to volatility or bet on energy autonomy as a competitive advantage,” concluded Galdón.
Key Questions and Answers
- What is hybrid energy self-consumption? It combines renewable generation, like solar photovoltaic, with battery storage systems (BESS) to ensure operational autonomy in industrial facilities.
- Why are industrial installations adopting hybrid models? These models offer stable energy flow, fewer unexpected shutdowns, increased productivity, and a competitive edge.
- What role do Power Purchase Agreements (PPA) play? PPAs enable companies to access certified renewable energy sources at a more attractive price, with the provider managing all aspects of generation and operation.
- Why are traditional energy models becoming less viable? Volatile energy prices, supply bottlenecks, and regulatory pressure for decarbonization make traditional models riskier and more costly.
- What are the government’s plans for renewable energy? The National System Strengthening and Expansion Plan (2025-2030) includes significant investments in renewable generation projects, acknowledging the need for both public and private sector involvement.
