ECEE - Mexico ESCO Workshop Trip Report

Mexico ESCO Mission Seminar
February 14 - 17, 2000

ECEE and NAESCO organized a mission seminar in Mexico City during the week of February 14-17. The purpose of the trip was to 1) provide an opportunity for U.S. ESCOs to learn more about the Mexican market, 2) introduce U.S. and Mexican companies interested in doing business together, 3) help educate Mexican end-users about performance contracting, and 4) share information about the U.S. ESCO experience that may be useful in Mexico’s efforts to develop an ESCO industry. Participating U.S. ESCOs included: CMS Viron Energy Services, ONSITE SYCOM Energy Corporation, and Sempra Energy Services.

February 14 and 15 were devoted to a workshop on ESCOs and Energy Performance Contracting in Mexico, organized by NAESCO and CONAE. In addition, FIDE was a co-sponsor. Over 100 people attended the workshops, representing a wide range of companies and organizations. The first day focused on the U.S. experience, with presentations on the basics of energy performance contracting; the status of ESCOs worldwide; the importance of measurement and verification; ESCOs in a restructured marketplace; NAESCO’s accreditation program; ESCO case studies in the federal, institutional, and industrial/commercial sectors; and TCAPP activities in Mexico. The second day focused on Mexican activities, with presentations on CONAE, FIDE, ATPAE, the energy conservation programs of PEMEX and Resistol (two large industrial companies), ESCO projects being implemented in Mexico, and financing of municipal projects through BANOBRAS. The primary barriers to ESCO project development in Mexico are difficulty in obtaining financing and legal/contractual issues. A number of workshop speakers and audience members talked about the need for a model contract.

On February 16 and 17 the U.S. group had meetings with the Mexican Center for Cleaner Production, the Mexican Hotel and Motel Association, and Jorge Nevarez, a consultant involved in developing and financing energy efficiency projects in Mexico.

Since the workshop, there has been some follow up contact between U.S. and Mexican ESCOs. ECEE, NAESCO, and CONAE have also discussed follow up activities. NAESCO has offered to provide input on efforts to develop a model contract and has forwarded two documents to CONAE that may be useful in these efforts. One is an annotated list of the common elements in a performance contract; the other is model state legislation, developed by NAESCO with NASEO and the National Council of State Legislators, which enables (U.S.) state facilities to enter into performance contracts.

There were also some preliminary discussions of how NAESCO and CONAE might facilitate partnerships between U.S. and Mexican firms. On the Mexican side, for example, ATPAE can help U.S. firms access local consultants, while CONAE can provide a pre-screening process for potential projects. CONAE has already conducted preliminary audits for a number of industrial and public sector facilities. NAESCO and ECEE can publicize these opportunities through e-mails and their respective web sites.

Also discussed were the possibilities of developing a Mexican ESCO association and a second workshop in Monterey.

Updated: 03/29/02