Enel's Growth in Mexico

Published on Monday, 7 April 2014

Mexico is the second largest economy in Latin America, with a strategic position among the emerging economies in South and North America. It is expanding rapidly, and its GDP is expected to increase by 3.5 percent this year.

Foreign investments will account for an important chunk of the country's growth. In the first half of 2013 they were the main source of income for this country with about $23billion, but Mexican authorities believe that a new record of about $35billion could be attained.

The Enel Group has a good relationship with Mexican authorities, as shown by the fact that Enel CEO Fulvio Conti was named chairman of the Green Growth panel at the Los Cabos B20 in June 2012. The Enel Group also took part in the delegation that accompanied former Italian Prime Minister Enrico Letta at the Italian-Mexican Intergovernmental Forum held in Mexico City on 13 January this year.

On that occasion Fulvio Conti and the Executive Director of the Mexican Electricity Research Institute José Luis Fernández Zayas signed a memorandum of understanding for cooperation in the development of geothermal power generation and smart grids.

Enel has had a presence in Mexico since 2007 through Enel Green Power, which has a total capacity of 197MW in the country drawn from six plants. Last year it began the construction of the 100MW Dominica I and 102MW Sureste I-Phase II wind farms.

But Enel is not only focusing on renewable energy in Mexico. The country's energy reform law, which ends the State monopoly on energy resources and opens doors to foreign investment, will enable the Group to also assess opportunities for development in traditional electricity generation, through subsidiaries Endesa and Enersis.

Interesting opportunities could arise in the field of distribution, while the power transmission project between Colombia and Panama and the Central American Siepac line (of which the Group owns 11percent) will connect Mexico and Central America to South American countries, offering remarkable opportunities for energy sales.