Why Mexico is 'the sleeping giant' of the solar industry

Chinese photovoltaic company LONGi is betting on Mexico's potential as major energy producer and consumer, while advancing operations in Brazil and Chile, among others.

LONGi is also focusing on green hydrogen, but mostly in countries with favorable legislation.

After participating in a recent forum on green energy hosted by Mexico's senate, LONGi's head of Mexico, Colombia and the Caribbean, Iván Reyes, talked to BNamericas about the biggest markets and favorable legislation.

BNamericas: What are LONGi's main technological clean energy approaches?

Reyes: LONGi is one of the main technology companies that promotes the use of photovoltaic solar energy. LONGi is of Chinese origin listed on the Shanghai stock exchange and a multinational with presence in more than 20 countries.

The company stands out for being a technological leader, especially because we have brought many benefits to the industry with the massive implementation of monocrystalline cell technology, as well as bifacial technology.

LONGi has been a technological leader that has brought many changes to the industry and improved not only efficiency but also productive costs that helped [reduce prices] of technology so it can be used on a massive scale, while useful life of generation in modules is now exceeding the guaranteed 30 years.

In addition to photovoltaic solar, we also venture into the manufacture of hydrogen electrolyzers for the generation of green hydrogen. This combination of both photovoltaic and hydrogen electrolyzers is more than anything because the company firmly believes that solar energy and green hydrogen are really key to decarbonizing the planet.

We are really committed to this and that is why the company has decided to invest billions of dollars in these technologies with the aim that they can be used massively and we can accelerate this decarbonization the planet requires so much.

BNamericas: What role does Latin America play in these plans?

Reyes: The Latin American market is very interesting for LONGi. In fact, the company has not only made hiring efforts in the sales team but also in the technical, marketing, logistics and operational teams, where we have a presence, such as in Mexico, the Dominican Republic, Panama and Colombia, with local people.

BNamericas: Do you also participate in the development, planning and/or installation of your technology for green hydrogen or solar projects?

Reyes: We are focused on what we know how to do, which is manufacturing. So we have quite a few patents and world records for efficiency. Today, our main objective is manufacturing. We are not implementing or developing projects, more than anything, because we leave this to our clients, we do not compete with them but, on the contrary, dedicate our resources to improving our technology and products so that they can be implemented in large-scale projects.

BNamericas: How does the company plan to become a solar and green hydrogen leader, and what role does Latin America play?

Reyes: In countries that are increasingly industrialized, such as the emerging economies of Chile, Brazil and Mexico, there is an ever greater need for energy. So, unlike other already developed countries – where technology was implemented with conventional energy – we now have this advantage that in Latin America this new energy demand is being favored to come from renewable sources, especially solar, green hydrogen and so on.

That is why this market is so interesting. It is a mix of energy demand, renewable energy, together with the technological offer that make a perfect match. It is something that meets both objectives, perfect demand and the best technology.

In fact, since last year we have also been the company that has invested most in research and development in the renewable energy sector, which has allowed us to position ourselves as a technological leader, introducing technologies that are more efficient at very competitive prices.

BNamericas: Which countries offer the best opportunities?

Reyes: It depends on energy demand and renewable energy policy. From that perspective, Brazil has the greatest demand and very good political legislation that favors renewables …  so many projects are being carried out in that country. Chile is also highly developed, especially in the renewable energy sector. Although demand is still important, it has maintained this consistency in the installation of renewable projects for several years.

But now we see new players such as Colombia and the Dominican Republic, where thanks to favorable laws, many projects are also being implemented.

BNamericas: What about Mexico?

Reyes: Mexico is the sleeping giant, since energy demand is gigantic. Right now, with nearshoring, new companies are coming and they need clean energy. We know what these last five or six years have been like [for the sector], with the pause in the policy regarding renewable energies and which we hope will change soon because not only is the need there but also the resource. The country’s solar resource is very interesting, which makes for a perfect match for the implementation of at least photovoltaic solar projects.

BNamericas: What’s the green hydrogen outlook for Mexico?

Reyes: Hydrogen demand has existed for a long time, it has enormous potential. Today there is a lot of gray hydrogen, but to make it green requires government support, at least to have incentives and clear and transparent rules that allow projects to be implemented.

BNamericas: What is LONGi's vision for Mexico in the next five years?

Reyes: LONGi firmly believes in the Mexican market. We don't let anyone from the local team go, quite the contrary. We have not stopped working in these five years despite the current situation, and we have been preparing for the good things that will come.

I think Mexico will be a very interesting market and LONGi is ready to help it grow, especially due to nearshoring and these companies that come to Mexico and need to supply themselves with renewable energy because it makes no sense to continue manufacturing with dirty energy.

At LONGi, we have a concept called Solar for Solar, where we manufacture solar panels using the energy of solar panels, so I think it is something that should be adopted.