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Miguel Ángel Cuéllar

MEXICO - Energy & Mining

Miguel Ángel Cuéllar

Executive Director, Edecsa Group

Bio

Miguel Cuéllar has been EDECSA’s CEO since 2018. He has expanded the group into the US, Mexico, Guatemala, and Nicaragua. He successfully closed financing deals worth USD15 million for project development as well as working on the financing of USD2.7 million for the EDESOLAR photovoltaic plant in Acajutla.

"Edecsa Group was born in El Salvador and is present in most of Central America in markets such as Guatemala, with plans to expand to other countries as well."
Edecsa Group is targeting another successful year ahead with a key emphasis on recruitment and new credit lines to support its growth goals.
How relevant is the Mexican market for the company, and what are your main goals in the country?

Edecsa Group was born in El Salvador and is present in most of Central America in markets such as Guatemala, with plans to expand to other countries as well. We are focused on Central America in general. In 2017, we decided to enter Mexico because of its reforms caught our attention. Our first strategy was focused on company rights for transmission, which is our specialization in Central America. We found the potential bid for up to three years extremely interesting, with an opportunity to generate solid long-term numbers. The tax regime in Mexico also allows us to invest and recover the VAT. Mexico is efficient in that sense. When our margins are good enough, we invest heavily in buying energy to bring it to Central America and vice versa. Two years after being in Mexico, we opened EDC Power, our subsidiary in the US, and we work with Caiso and ERCOT. We are more active in ERCOT handling company rights, our specialty; however, we are constantly studying the market to see when the margins are sufficiently high for us to bring energy to Mexico or export from Mexico to the US.

What types of project are you looking to collaborate in currently, and are they mostly in the public or private sectors?

We do not have a specific profile. To make a decision, we do the necessary due diligence that tells us where we can participate. When we entered Mexico, we did extensive due diligence for a wind energy project, though due to certain developments we did not pursue it. We have had conversations with companies in Mexico working on solar projects in distribution. We have opened the doors to Central America, because projects for renewable energy distribution can be done here. I believe we can form alliances between Mexico and Central America that can be highly profitable.

How do you explain the company’s performance this year?

2023 was spectacular. Edecsa Group saw revenues of over USD100 million, and in 2022 we scaled USD154 million. Our projections for 2024 are to maintain that value. 2023 was also amazing in terms human talent growth. Edecsa group started as a four-person company that expanded to 10 and later 40 people. We hope to reach 50 people by the end of 2025, not just in El Salvador, but also in Guatemala and Mexico. We want to have staff in the US as well. Edecsa has always believed in Central America. Our work in the last 11 years has been characterized by innovation. We want to do our part to help the energy industry grow.

What are the next steps for the company, and what are your main goals for 2025?

The main step for the company right now is to have the required talent in the countries where we need it, such as Guatemala. Right now, we handle a high amount of business through the office in El Salvador; however, we need staff in Mexico, Guatemala, and the US, namely Texas. That is one of our major priorities, because talent is essential for growth. As well, we want to continue growing in terms of electric energy projects, in this case renewable energy, and not just in El Salvador but elsewhere. Accordingly, we are studying opportunities in Nicaragua, Guatemala, and Mexico. The third key aspect is the financial engineering we are putting in place. We use guarantees for bids, so we want to have all of this on paper and have credit lines in our various countries of operation. I believe these three points are key to continuing Edecsa’s growth. We are also looking for associations with bank and funds. We are looking for local and Central American banks and having conversations with financial institutions in Mexico.

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