Containerized BESS project financing options in Mexico 2030

Is blended financing a viable financial model for Bess projects?

As per McKinsey & Company, the market size of the BESS ecosystem is expected to reach $150 billion by 2030. Thus, blended financing as a financial model should be considered, where public capital can be used as a first-loss capital for BESS projects. This offers private financers the comfort of providing capital at a competitive rate.

What is the global Bess capacity in 2023?

As per the International Energy Agency (IEA), global BESS capacity was 85 GW (approximately 190 GWh) at the end of 2023 and is expected to reach 400 GW (over 1,200 GWh) by 2030 to enable the seamless grid integration of renewable energy, with the net zero 2050 emissions scenario as a target.

Does Bess in BCS reduce total systems costs?

Our results indicate that BESS in BCS reduce total systems costs and support the development of higher shares of renewable energy technologies across all modeled scenarios, but does not eliminate curtailment in the optimization of the operational strategies.

Who formulated Mexico's grid expansion plans?

Despite its recently liberalized market, Mexico's grid expansion plans are formulated by its independent systems operator (CENACE) , and approved by the Energy Secretariat (SENER), before being published as the official national grid-planning guiding document, PRODESEN .

Where are the capital flows for Bess concentrated?

The IEA states that capital flows for BESS are concentrated in China and other developed countries due to the high cost of capital for clean energy projects in emerging economies.

Can a Bess project be issued as a green bond?

Independent BESS projects can be bundled together and issued as green bonds to potential large investors. A partial credit guarantee can be provided by public capital providers to improve the credit ratings of green bonds, which is necessary to attract these low-risk-seeking investors.