Mexico, a country rich in sunlight, lacks solar infrastructure, but one startup has been working diligently to bridge the gap. Now, Niko Energy is taking its solar mission further by building Mexico's first virtual power plant.
As TechCrunch detailed, Niko Energy has been in the solar energy business since 2023. Founders Edoardo Dellepiane and Raffaele Sertorio started the company after realizing that Mexico's solar market was severely underdeveloped, especially given the country's ample sun exposure.
According to clean energy think tank Ember, Mexico generates 23% of its electricity from clean sources. That is well below the 39% global average. Only an estimated 6% of Mexico's clean energy comes from solar.
Solar power is one of the cleanest energy options for homes and businesses. Solar helps reduce reliance on the grid, which is largely fueled by dirty energy sources. The United Nations reports that pollution from gas, oil, and coal is the biggest contributor to rising global temperatures.
Niko Energy offers solar panels to customers through a "fee-for-service" model, similar to traditional electric companies. The subscription-like service can be canceled at any time, with the company removing the panels upon termination. But now, Niko Energy has begun expanding upon that work by building Mexico's first virtual power plant.
A virtual power plant, or VPP, is a system that connects many small energy sources — including solar panels, home batteries, electric cars, and smart devices — using software to control and coordinate them. Together, they act like a single power plant, helping supply energy when needed, storing it when there's extra, and keeping the electricity grid stable and efficient. And in Mexico, that assistance is sorely needed.
As TechCrunch reported, Mexico's power grid is "stretched thin." The problem was highlighted in 2024 when a severe drought downed hydropower, causing widespread blackouts.
"We have seen the new government put a lot of attention to this problem," Dellepiane told TechCrunch. "We want to be the company that manages the biggest portfolio of decentralized energy resources in Mexico."
To build its VPP, Niko Energy is selling battery storage to solar owners and buying resources from clean energy companies looking to sell their assets. The founders tell TechCrunch it's aiming to "amass tens of megawatts of electricity at the outset."
According to the Solar Energy Industries Association, an average of 172 United States homes can be powered by a megawatt of solar power. That number, however, can vary greatly depending on location. In California, about 275 homes can be powered by one megawatt of solar, compared to only 100 in Louisiana.
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Definitely 💯 In addition to the VPP project, Niko Energy told TechCrunch it plans to keep funding new solar installations, focusing on Mexico before potentially expanding across Latin America. The company said the number of projects it has handled has increased by 20% each month.
"We saw that Mexico is a huge untapped opportunity, so [we are] focusing on one country and doing it well before we move on to other parts," Sertorio told TechCrunch.
Niko Energy has raised $8 million in a funding round, with another $15 million in debt financing, to support more installations and develop its VPP.
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