Electrical Supply, the key to nearshoring development in Mexico
What is the current state of the Mexican energy landscape in the face of nearshoring demands? What challenges and opportunities does the electricity sector offer companies interested in opening operations in Mexico?
We share a perspective on the relationship between the electricity supply and the growth of nearshoring in the country.
Given its proximity to the United States and its logistical advantages for global trade, Mexico is an ideal destination for nearshoring; however, this implies new challenges in the energy field.
With the rise of nearshoring, electricity demand has surged in several areas of the country. Companies seek constant energy, preferably from renewable sources. This need coincides with national objectives to obtain 35% of energy from clean sources by 2024. But is Mexico ready for this challenge? Can it ensure an electrical supply that supports nearshoring and meets its environmental goals?
Energy supply and its relevance in nearshoring
Nearshoring has become a highly profitable strategy for companies that aspire to expand their operations while minimizing costs by moving specific processes to nearby nations. Thanks to its strategic location, specialized talent, and advantageous costs, Mexico is a focal point for nearshoring in the Northern Economic Corridor.
The country's 10 main nearshoring investments involve international companies focused on sectors such as the automotive industry, lithium batteries, metals, furniture, and automation. Given its strategic position to supply the US market, most of these investments are in Nuevo León. Other assets are in states such as Coahuila, San Luis Potosí, Jalisco, and Querétaro.
Ternium, a steel company, leads the list with an investment of US$3.2 billion for a new plant in Pesquería, Nuevo León. Solarever Group, a Chinese solar panel company, plans to invest US$1 billion in a battery plant for electric vehicles in Jalisco. BMW announced an investment of US$875 million in San Luis Potosí to produce its line of electric cars from 2027. Finally, Nidec, a Japanese electric motor manufacturer, is in fourth place with an unspecified investment for a new plant in Mexico.
Other listed companies include Citic Dicastal, Man Wah, ZF Group, Cenntro Automotive, and Noah Itech, which invest in car parts, furniture, lithium batteries, and automation.
The success of this strategy cannot be ensured without a stable and efficient energy supply, as any failure or variability can lead to considerable losses, interruptions in the production chain, and delays in operations. Thus, ensuring constant and high-quality energy becomes a primary factor that foreign companies consider before opening new jobs in our country or moving to locations closer to their target audience.
The energy challenge also includes quality and sustainability: Socially responsible organizations seek renewable energies to reduce environmental impact and align with sustainability goals. Although Mexico presents a promising panorama in clean energies, promoting investments and advances that maximize this potential is vital.
According to Forbes, Mexico's electricity consumption currently represents only 83% of its generation, which indicates an energy surplus. Compared to the United States, Mexico produces more energy per dollar of GDP.
When making future projections, it is imperative to prepare for an approximate growth of an annual rate of 3% between 2022 and 2032. This increase is even more significant in areas such as Nuevo León, Tamaulipas, and Coahuila due to their intense industrial activity growth.
Energy efficiency for sustainable nearshoring growth
The challenges facing Mexico and MEM participants are not only to generate more energy but also to use it as intelligently as possible.
Energy efficiency enhances business profitability and competitiveness while minimizing carbon emissions; therefore, it is a key performance pillar for nearshoring operations.
Some of the most effective measures include the following:
Energy audits help companies identify improvement areas—the first step toward sustainability.
Preventive maintenance, ensuring equipment operates optimally and avoids excessive consumption.
Invest in energy-saving technologies, such as LED lighting and automation, which reduce consumption and adjust demand in real time.
Efficient design, minimizing the need for air conditioning.
Energy efficiency combines technology, design, and culture to ensure sustainable and profitable operations.
Investments in energy efficiency usually have a favorable return on investment (ROI). Benefits like operating savings, sustainability, and reputation position energy efficiency as an intelligent strategy for companies in the field of nearshoring.
Integrating renewable energy into the industrial sector
Transitioning to renewable energy sources has become a priority for many countries, and Mexico is no exception. Incorporating them into the industrial sector is essential, not only from an environmental perspective but also from an economic and strategic one.
The industrial sector is one of the country's primary energy consumers and has a crucial role in this transition. Adopting more sustainable sources can offer multiple benefits; for example, renewable energy, often more affordable and predictable than fossil fuels, allows for significant long-term savings.
Mexico has demonstrated its capacity for electricity generation; however, this energy must come from sustainable sources. This is necessary to ensure the granting of government permits for self-generation of energy, allowing large industrial complexes to incorporate sources such as photovoltaic energy.
It is essential to highlight that the transition to renewable energies does not simply imply replacing one energy source with another; it requires a complete restructuring of how energy is produced, distributed, and consumed. That demands investments in technology, infrastructure, training, and adaptation of current regulations and policies.
Selection of energy suppliers for nearshoring
Despite Mexico's benefits, it still faces challenges in its energy infrastructure; therefore, selecting the right energy supplier is a determining factor, directly impacting business sustainability and profitability.
To ensure sustainability, has proposed that 35% of its energy will come from clean sources by 2024. This objective opens doors to investments from both the state and private sectors. In this panorama, we stand as a benchmark in the industry, backed by our commitment to renewable energies and deep market knowledge. Our ability to offer sustainable and efficient energy solutions responds to the challenges of nearshoring.
Are you ready to take your business to the next level and ensure an efficient and sustainable electricity supply? At Enel, we combine experience, innovation, and commitment to offer tailored energy solutions. Connect with us today and discover how we can illuminate the path toward a brighter and more sustainable future for your company!
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