Industrias Peñoles increased its consumption of renewable energy to almost 48% in 2021, with greater own production of wind energy.

In 2021, the demand for electricity decreased 2.7% due to the strike that continues in three mining units.

Its portfolio of power plants generated energy equivalent to 85.0% of its self-sufficiency.

With a full year of operations for Eólica Mesa la Paz, the company was able to increase the share of renewable sources in its consumption from 40.6 to 47.8%.

However, only 6.5% of the energy generated by said plant could be assigned to the Capela unit, and the rest was sold to the Wholesale Electricity Market (MEM) due to the fact that the Energy Regulatory Commission (CRE) continues with the procedures to migrate loads to the MEM.

As a result of the above, Peñoles stated that it was necessary to purchase energy from the CFE for 15.0% of its consumption.

In this way, the unit cost was 14.8% higher than last year (US¢7.87 per kWh), also affected by the increase in transmission rates of legacy contracts since mid-2020, whose constitutionality continues to be challenged.

Peñoles

As part of its strategy to ensure the supply of electricity for its operations at competitive costs, the company has the following energy purchase commitments.

Termoeléctrica Peñoles

Contract signed to acquire, through its subsidiaries, the production of electrical energy from a plant with a production capacity of 230 megawatts of power.

In addition to the supply contract, an agreement was signed to create a trust for business activities for the operation and maintenance of an electric power generation plant under the self-supply permit granted to Termoeléctrica Peñoles (TEP). The term of the agreement is valid until 2027.

To guarantee the commitments to purchase electricity, the owners/operators of the project were granted a put option so that, in the event of default by their subsidiaries, they may require Peñoles to purchase the shares that make up TEP’s capital stock at a price equivalent to the present value of the remaining scheduled payments that its subsidiaries are required to pay under the contract.

The estimated cost for electricity consumption for the year 2022 for the 2,014.8 million kWh is US$133.0.

Eólica de Coahuila

Electricity supply contract entered into on April 25, 2014, under a self-supply regime with Eólica de Coahuila (EDC) for a term of 25 years, for which the Peñoles subsidiaries adhering to this contract will acquire the entire production of energy that EDC generates in the contracted term, in an estimated average of 700 million kWh per year, payable monthly at a fixed price that can be determined for each kWh that EDC delivers to the CFE at the interconnection point stipulated in the contract.

The commercial operation began in April 2017. Simultaneously with this contract, a purchase and sale option agreement (“Put option”) was entered into for the assignment of the social shares of EDC in certain circumstances of default.

The approximate cost for electricity consumption for the year 2022, estimated at 728.4 million kWh, is US$64.1.

Eólica Mesa la Paz y Peñoles

On January 25, 2018, Peñoles entered into an electricity coverage contract under the Law of the Electricity Industry with Eólica Mesa La Paz (MLP) for a term of 25 years.

To this end, the subsidiaries of Peñoles, through the Supplier of Qualified Services, will acquire during the first seven years 67.8% of the net energy production of MLP, which is estimated at an average of 782.3 million kWh per year, of the year 8 until the term of the contract, they will acquire 100% of the net energy production of MLP, which is estimated to average 1,170.0 million kWh per year, payable monthly at a fixed price that can be determined for each kWh that MLP delivers to the National Electric System. at the interconnection point established in the contract.

The commercial operation began on April 1, 2020, as part of the contract, a purchase and sale option agreement (Put option) was stipulated for the transfer of the MLP social shares in certain circumstances of default. The approximate cost for electricity consumption for the year 2022, estimated at 805.0 million kWh, is US$34.7.