MONARCH GLOBAL STRATEGIES

A leading, publicly traded solar energy company sought new business opportunities resulting from Mexico’s historic 2013 Energy Reforms, but it needed assistance to understand and navigate the transitional period between the old electricity regime and the newly competitive market.

We counseled the company on bidding in Mexico’s first electricity power auction in 2016, in which it was awarded power purchase agreements to supply approximately 500 MW generation capacity from two solar facilities. We subsequently guided the company through the many federal, state, and local regulatory and permitting hurdles that were required before construction on the two plants could begin.

Our work included policy analysis and advocacy regarding the new regulatory regime, including pushing for important environmental regulation modifications at the state level. We connected the company with federal and state government officials with oversight over its projects, including with top officials at all four federal agencies with a stake in Mexico’s electricity market. We also helped the company build and lead a robust team of specialists to streamline the process of obtaining its interconnection, generation, environmental and social impact permits.

Our client made a strategic decision to exit generation operations to focus on its core business (solar panel manufacturing and marketing) and sold the projects in 2018 and 2021, respectively. Monarch worked with the client throughout the sales process to make sure that it was able to achieve all closing conditions and successfully close the deals.

A major international insurance company sought guidance in its bid to enter the Mexican insurance market through the privatization of the state-run insurance company. After winning at auction, the company sought additional government relations support to establish its corporate persona in Mexico.

We helped our client to better understand the decision-making process of other bidders, position itself as a serious contender, and obtain the necessary information to craft a competitive bid proposal. We then helped convert the state-run entity into a private company under a transnational umbrella. We went on to provide ongoing government relations support, including political intelligence, policy and business analysis, and served as a liaison between their Washington, D.C., and Mexico offices as needed.

Our client completed the purchase and remains a key player in the Mexican insurance market today. Mexico is one of the company’s most important markets outside the United States. Our support also enabled the company to execute a seamless bilateral engagement and advocacy strategy to effectively resolve challenges that arose at the federal and state levels.