Electricity crisis: What to expect in the coming years?

by Advance Real Estate 24 de January, 2023 698 Views

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Considering the importance of electric power and the challenges its supply has experienced over the last few years, it is imperative to assess how the scenario will change and what measures can be adopted in the long term.

The ongoing electricity crisis

When talking about how electricity is produced, it is worth noting that the country’s supply is generated by the large power plants—some belong to private institutions, but most electricity is produced by the Federal Electricity Commission’s (CFE) plants.

Unfortunately, the supply chain has faced several obstacles recently. The main one, a massive blackout in February 2021, left a dreadful aftermath:

A power imbalance caused a significant blackout in the country’s northern region, affecting 4.7 million customers from the border states, according to the CFE’s Annual Report for 2021¹.
This incident was detrimental to several companies. In the two consecutive days of outages, it is estimated they lost up to US$2.7 billion².

These power outages also impacted other industries, such as the automotive and transportation industries, as well as several entrepreneurs and businesspeople trying to grow and develop their businesses.

The value of electric power lies here: not only is it the engine of almost every Mexican industry, but its supply interruption has severe implications for a company’s day-to-day operations.

How will it evolve in the years to come?

Unfortunately, experts believe that the trend will continue. Regulo Salinas, president of the Energy Commission, warned that Mexico will keep having blackouts, and there is even the chance that they may no longer be considered isolated incidents. According to Reforma³, there haven’t been investments in the sector in the last few years, and the administrative paperwork to inaugurate new power plants and make them operational takes a long time.

Therefore, it is imperative to adapt to current trends and explore investments favoring renewable energy production and higher use.

Adopt renewable energy in Mexico

When discussing how electrical power is produced in your industry, analyze implementing renewable alternatives such as wind and solar energy.

Choosing a more sustainable energy source will help your industry in the long run. It will help you prevent power supply issues and possible outages that could disrupt your operational performance, so you will achieve a higher level of sustainability for the company.

Acquiring sustainable energy sources is particularly relevant now with the worldwide call to reduce the use of fossil fuels. In fact, the United Nations Environment Programme (UNEP)⁴ has claimed that investing in low-carbon energy and infrastructure will positively affect the economy.If you are interested in expanding your business with these alternatives, evaluate the possibility of locating your company’s operations in an industrial park with the support of Advance Real Estate. We are constantly working to ensure that our available facilities become more compatible with sustainable operations and renewable energies in Mexico. We are implementing strategies aligned with ESG principles, striving to reduce our ecological footprint, and making a more substantial environmental commitment.

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Advance Real Estate

Advance is a leading company in the acquisition, leasing and operation of industrial and logistics assets, with presence in 12 cities within Mexico and a portfolio of 11.5 million sf of industrial space.

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