Houston, October 27, 2023. Grupo Merelec started operations in the ERCOT market as of August 2023 as part of an expansion process initiated in 2022, which to date has successfully consolidated operations in 7 countries in North, Central, and South America.
Merelec is an energy trading company that originated in the Central American Regional Electricity Market (Mercado Eléctrico Regional Centroamericano) with a clear vision to promote the energy wholesale market. By 2018, the company had already established operations in Guatemala and Mexico, after the launch of the new Mexican market in 2016. Since then, it has maintained commercial operations with various participants in the electricity market affiliated with ERCOT.
The expansion towards the United States is a natural progression following the consolidation of their operations in Mexico. This was achieved by establishing Merelec USA, a subsidiary located at 3000 Wilcrest Drive in Houston, Texas.
The United States is divided into three major electrical grids: the Eastern Interconnection, the Western Interconnection, and the ERCOT (Electric Reliability Council of Texas) grid, which operates under its regulations and is independent of other states.
With over 30 million residents, including large industries, Texas is the state that consumes the most energy in the country. The ERCOT market has demonstrated its ability to operate sustainably, and its nature allows users the freedom to choose their energy supplier, fostering competitive rates and driving innovation, thus promoting a diversified energy matrix.
To enter this new market, Merelec Grupo relies upon a strong trading and business intelligence team. Along with local strategic advisors in the legal, financial, and operational aspects of the Texas market, who successfully conducted the first transactions within this market in August 2023.
In a highly competitive market like ERCOT, with major multinational firms like Shell and Morgan Stanley operating in the commercial landscape, the entry of a Latin American group is not an easy feat. However, it was facilitated by the determination and commitment of the entire corporate team, which successfully overcame the barriers.
Grupo Merelec opens its operations in this exciting yet challenging energy market with an efficient operational platform that has demonstrated the ability to conduct transactions in international markets from Central America.
Furthermore, the group plans to venture into environmental markets with I-REC Certificates to expand the scope of the renewable generation technology portfolio, which is currently being traded from Mexico to Argentina.
With over 22 years of experience in energy markets, Merelec Group once again demonstrates its leadership in the energy trading sector, thanks to the potential of its local talent pool, financial strength, risk management, IT infrastructure, and advanced data management. These factors have enabled the company strongly in the region to date.
The Texas market expects significant growth in renewable generation assets over the next few years, which brings with it a process of transformation and market challenges in terms of price stability. The market itself anticipates changes in the availability of reliable reserves, as well as the co-optimization of real-time operations and performance-based credit mechanisms.
This is a scenario in which the launch of operations by Merelec USA arrives with high expectations for growth in the coming years, remaining committed to its vision of Connecting the Americas.
On October 27th, part of the trading and business intelligence team, along with our Director of Operations, participated in the Energy Trading Week Americas, strengthening business relationships in the North American market and promoting Merelec USA.
Contact our team and connect the Americas with us:
Trading: Gustavo E. Chávez – CFO – Email: firstname.lastname@example.org
PR: Sofía Leiva – Head of Marketing – Email: email@example.com