Walmart in Mexico

Walmart de México y Centroamérica has significantly invested in sustainable energy, exemplified by its 15-year Power Purchase Agreement (PPA) with Electrica del Valle de México’s (EVM) wind farm. This arrangement enabled EVM to secure financing, construct turbines, and begin generating electricity by 2010, providing Walmart de México with 18% of its consumed electricity at rates lower than Mexico’s state-controlled utility. This project was foundational in Walmart de México’s broader sustainability goals.

Manuel Gómez Peña, as Director of Sustainability, faced strategic decisions regarding the balance between diversifying into numerous energy types. Beyond wind energy, Walmart de México considered other renewable sources such as solar and mini-hydroelectric projects to meet its target of sourcing 50% of its energy from renewables by 2015. The political and regulatory landscape in Mexico, which lacked special feed-in tariffs and provided limited tax incentives, influenced these considerations. Furthermore, the company’s commitment to sustainability had to align with its core retailing activities, ensuring every project met stringent return on investment criteria. Gómez Peña pondered expanding the program not only within Mexico but also across Central America while potentially involving suppliers in a renewable energy initiative. 

Developed in partnership with CEDAN, Tecnológico de Monterrey, Mexico City