China-based CATL, global leader in energy storage, signs on for a major Mexican solar project

CATL, the world’s largest manufacturer of battery energy storage units, is seeking to become a player in Mexico’s energy-storage business.

Headquartered in China, CATL (Contemporary Amperex Technology Co., Limited) has signed an agreement to supply a 313 megawatt (MW)/1,639.45 megawatt-hour (MWh) battery energy storage system (BESS) to the La Alegría Solar project in the state of Campeche. The project is being developed by Copenhagen Infrastructure Partners, a Danish global fund manager and investment firm.

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According to CATL, La Alegría will incorporate Mexico’s first BESS with an energy capacity exceeding 1 gigawatt-hour and will be the largest battery storage system in the country.

BESS units do not produce electricity themselves. Their function is to store energy generated by other sources and release it when needed, allowing for better use of renewable energy production and responsiveness to supply fluctuations, while providing ancillary services to maintain the stability of the electrical system.

CATL’s plans for La Alegría include more than 1.1 million photovoltaic modules of 685 Watt peak (Wp) each, 101 transformer substations and 202 inverters. Wp is the unit that measures the maximum theoretical power output of a photovoltaic (PV) solar panel.

The evacuation infrastructure includes a 34.5/400-kilovolt step-up substation and a 2.85 km, 400-kilovolt transmission line, occupying a total area of ​​1,206.97 hectares.

The design represents a substantial change from the original configuration as the proposed battery energy storage capacity (1,639.45 MWh) is approximately 5.2 times the 314.98 MWh appearing in the approved environmental documentation. 

From auxiliary service to business opportunity 

CATL’s desire to expand its presence in Mexico coincides with plans by the Energy Ministry (Sener) to incorporate 935 megawatts of electrical storage capacity — with systems capable of injecting energy into the grid for at least three continuous hours — to support greater energy generation through renewable sources.

Expansión magazine reported that Sener is preparing a call for proposals to develop power generation and storage plants, promising to expedite permits and interconnection studies.

Sener is looking to the BESS market, which would help integrate more solar and wind power plants while helping to maintain the stability of the electrical grid.

These new market conditions open the possibility for CATL to supply equipment and solutions to new projects and move toward long-term operation and maintenance in Mexico’s power system. 

Still, CATL’s chief technology officer Amanda Xu told Expansión that market development depends on investors finding conditions that justify allocating capital to storage systems.