Cox Energy seeking to making significant inroads in Mexico

Despite signals to the contrary, Cox Energy believes the time could be ripe to invest in Mexico.

Mexican President Andres Manuel Lopez Obrador has taken steps to give the Federal Electricity Commission, the national power utility, more control over the industry. Obrador believes private-sector contracts are “predatory” and result in higher prices for the country’s residents, Reuters reported.

Many in the industry have criticized Obrador’s moves, citing it as a threat to their ambitions. Cox Energy, a Spanish solar energy firm, has a different opinion. Its president, Enrique Riquelme, feels the issue may be a failure to communicate.

“I think there is a problem of communication rather than content,” Riquelme told Reuters. “In the content, there are many things that I agree with.”

Cox is making a strong effort to establish a strong presence in Mexico. That includes being listed on the nation’s second largest stock exchange, the Bolsa Institucional de Valores. The company's goal is to raise $46 million. Cox is waiting on a regulatory nod from the banking commission, Reuters reported.

The company has upgraded its investment in Mexico with five solar-energy projects in different stages of development. It was founded in 2014 with the purpose of selling power and gas in Europe and Latin America prior to expansion in Mexico.

Cox believes there is a future for renewable energy in Mexico based on its results to date.

“Mexico will not only meet its goals that it has set up for itself but surpass them.” Riquelme said, The Business Year  reported. “The country just has to ensure the future of the energy reform and allow it to mature. I trust a lot in the new government and its intent of lowering the costs of energy. This benefits us as solar energy is the most competitive.”

Riquelme offered a statement of confidence in Cox's ability to establish itself despite the commission’s increased control on the industry, calling in the “perfect” time to invest in the nation.

“If we had even the slightest fear of investing in Mexico in the short, medium or long term, I can assure you that we would not have announced that we are going public,” Riquelme said, according to Reuters.