Generating value through operational excellence
If you have ever experienced even a brief power outage in your home or business, you know firsthand how disruptive it can be. When an outage is widespread, everything comes to a halt.
For Saavi Energía, one of the largest private power producers in Mexico, downtime is not an option. In Baja California, for example, Saavi generates approximately one-third of all the power in the region. By investing in resilience at every one of its power plants and compression stations, Saavi is showing its commitment to providing reliable power to its customers.
“We take our responsibility very seriously,” said Mauricio Del Valle, chief executive officer at Saavi. “We know we need to be there for the grid, for the people and for our communities.”
Saavi’s mission, vision, culture and business all center on operational excellence. That means peak performance, with a commitment to continuous improvement.
Operational excellence: Lived and breathed, not simply achieved
Operational excellence is always evolving. It must be supported by measurable goals and tangible results, over and over again.
“We see operational excellence not as a fixed target, but as a daily behavior,” said Rafael Miranda, director of operational excellence for Saavi. “The goals reset every day.”
Not only do the goals reset every day; they climb over time. As Saavi grows its portfolio and evolves its solutions, operational excellence doubles as a driver of value. “In addition to being important for safety, efficiency and reliability, it’s a value creation strategy,” Del Valle said.
HPR: A measure of resilience
Since Saavi’s founding in 2018, FM has helped the company define and refine operational excellence. The strong strategic partnership, facilitated by brokerage and consulting firm BKS Partners, led Saavi to earn FM’s Highly Protected Risk (HPR) designation. HPR is essentially an A grade in loss prevention, backed by engineering- and research-based recommendations.
Achieving HPR status at its facilities quickly became a top priority for Saavi, and one that the company has pursued fiercely. Nearly half of Saavi’s assets received the HPR designation by the end of 2023. In addition, a newly acquired asset saw 20 recommendations closed within a year. FM’s local team in Mexico streamlines the communication and collaboration, enabling Saavi to seamlessly execute initiatives.
“By the end of 2024, we expect that all of our assets but one will have the HPR designation,” Del Valle said, adding that the final asset should receive the designation during scheduled maintenance in 2025. “HPR status is extremely important to us because it confirms we have reduced our risk to the minimum tolerable component.”
Andrés Mejía, account manager for FM’s Latin America operations supporting Saavi, recognizes Saavi’s aggressive approach to risk improvement. “[Saavi] chose to secure HPR status in a much shorter timeframe than the original plan,” he said. “Even beyond HPR, they make it a point to reach and maintain zero open recommendations.”
Miranda and the operations team, with full support from the COO and management team at Saavi, admirably take the external recommendations as internal mandates. “We trust the eyes and experience of FM’s engineers because we know they use extensive data that they have gathered from similar facilities around the world,” Miranda said. “If they provide a recommendation, it means there’s a risk that we need to address.”
ESG: A byproduct of excellence
Energy companies inherently play a crucial role in creating a more sustainable future for us all. Saavi’s decarbonization efforts hinge largely on increasing the efficiency of its operations and maintenance. Stable infrastructure gives Saavi the foundation to pursue renewables as part of its decarbonization strategy.
Saavi’s ongoing investment in operational excellence fuels the company forward on a sustainable path, while FM’s unique Resilience credit adds financial incentive and support for climate risk improvements. In 2023, FM issued premium offsets totaling approximately US$350 million to eligible clients, including Saavi, as part of FM’s Resilience credit toward renewals. It’s an example of how the mutual ownership structure can make a large-scale impact.
Interests aligned, value delivered
From ensuring compliance to customizing coverage and building resilience, Saavi and FM are partnering to protect Saavi’s purpose, so Saavi can continue to grow its presence.
“Our partnership is an important part of our growth journey,” Del Valle said. “When we acquire a new asset, we know we have a trusted advisor in the due diligence process. It becomes a competitive advantage on all fronts.”
Meanwhile, each day at Saavi is a new opportunity to achieve operational excellence. It’s how Saavi delivers energy safely, reliably and efficiently to Mexico’s vibrant communities.