Mexico has gone from being a latent promise to becoming the biggest technical test of the BESS market in Latin America. The acceleration of private and public-private partnerships, coupled with the new regulatory framework for storage, has pushed manufacturers, developers, and EPC contractors to respond simultaneously to an unprecedented portfolio of projects with differentiated requirements.
In that scenario, Héctor Núñez , commercial director for North America and Latin America at Sungrow , warned that the company is facing an unprecedented volume of work in the country.
“ We are participating in dozens, if not hundreds, of parallel projects with different requirements ,” Núñez stated during his participation in the Future Energy Summit (FES) Mexico.
“ The requirements that Mexico currently demands are the most demanding we see in the region, mainly from the point of view of storage ,” the executive added.
The diagnosis comes at a crucial moment. The mixed scheme promoted by the CFE not only redefines the development of new generation but also opens up unprecedented demand for BESS systems. The 37 projects awarded under this mechanism total around 7,400 MW of capacity and must incorporate 3 hours of storage, equivalent to 30% of their capacity . Some initiatives even exceed that threshold, such as El Chorro , promoted by Teralia , which contemplates an integration of nearly 45% in batteries .
In addition, there is a specific call for storage and a demanding regulatory schedule: during October, the technical alignment of the projects with the binding planning criteria of the electrical system will be evaluated, while that same month the final results of the calls and the permits approved by the CNE Technical Committee will be known.
This new landscape explains why Sungrow interprets the Mexican moment as a regional turning point. After years of low activity in the utility-scale sector, the country has become the focus of accelerated demand, where price is no longer the sole deciding factor.
“ Mexico was a little asleep and this wakes it up like someone who is sleeping and a snake falls into their bed ,” Núñez explained.
The executive maintains that this change took much of the industry by surprise. While some manufacturers had to quickly reorganize their structures to handle the new volume of projects, Sungrow arrived with an advantage: during the period when the Mexican market was growing slowly, the company consolidated its presence in other Latin American markets , experience it is now bringing to the country.
"Mexico has entered a phase with an unprecedented number of projects. Not everyone has been able to adapt to that demand, and few companies have the capacity to respond," he said.
He added: "We are working with countless promoters and countless EPC members to arrive on time and deliver the information they need, because it is key for them."
For Núñez, the goal now is for the majority of that portfolio to actually reach the construction stage. "We hope these projects will come to fruition. If not all of them, then most of them can be developed. I believe it's feasible, and that's why we're here, to help," he stated.
Beyond CAPEX: The race to reduce storage costs
At this point, Sungrow seeks to capitalize on its regional experience. The company claims to have approximately 12 GWh of storage capacity contracted in Chile , a market that Núñez identifies as a pioneer in Latin America and from which the company gained technical expertise to adapt solutions to the Mexican case.
“ Chile was and is undoubtedly the pioneering market in energy storage, ” the executive points out. The difference, he clarifies, is that Mexico requires a specific adaptation. Simply replicating solutions used in other countries is not enough. Local regulations, CFE's needs, and the characteristics of each tender necessitate tailor-made solutions.
Meanwhile, the rising price of lithium is putting pressure on project costs. “ We are suffering from a tremendous increase in the price of lithium, which is double what it was worth in December of last year ,” Nuñez warned.
To mitigate this impact, Sungrow is focusing on higher-density solutions. The company recently launched a 7 MWh battery in a 20-foot footprint , up from the 5 MWh it previously offered in the same space.
This leap allows for the incorporation of an additional 2 MWh without expanding the footprint, which translates into a reduction in the balance of plant and a direct improvement in the economic viability of utility scale projects.
But, for Núñez, the discussion can no longer be limited to the initial acquisition cost . The growth of energy storage has also altered the strategic weight of these systems within the total investment. While historically an inverter manufacturer accounted for only between 5% and 7% of the CAPEX of a photovoltaic plant, the incorporation of BESS raises that share to nearly 30% , making storage one of the most important components of the project.
“ I invite you to look at those other elements and I emphasize OPEX, degradations and what type of product I am offering ,” he remarked.
Long-term operation and maintenance (LTSA) contracts, he explains, will have an increasing impact on profitability. Therefore, Sungrow is committed to flexible arrangements that allow for knowledge transfer to the client's own staff and significantly reduce these costs.
"We can adapt to the client's needs, transfer that knowledge to their operations and maintenance staff, and reduce that cost to practically zero, making the project more viable."
The company also highlights its regional monitoring center, from where it supervises the installed systems in real time, even down to the temperature level of each cell, as part of a strategy aimed at maximizing availability and minimizing operational risks.
Sungrow currently has 1.2 GW of installed photovoltaic projects in Mexico and continues to expand its local structure to support the expected growth of the market.
“ The years between now and 2030 will be quite busy, and almost everyone will undoubtedly have a job ,” he predicted.
In this analysis, Mexico is beginning to shift the center of gravity of Latin American storage. With Brazil affected by curtailment restrictions and Chile already established as a regional testing ground, the Mexican market now appears as the new arena for competition among major BESS manufacturers.
“ I would venture to say that at this moment it is the most relevant market in Latin America ,” Núñez concluded.
The signal for the industry is clear: the Mexican boom not only opens a commercial opportunity, but also raises the technical bar for the entire regional market . In this race, the ability to deliver technology, comply with regulations, and reduce operating costs will be as crucial as the initial price of the batteries.