Energy

Romeu Gaspar's picture
Six suggestions to leverage the growing renewable energy opportunities in emerging markets
Romeu Gaspar
 
Large-scale deployment of renewable energies has so far been concentrated in Europe and in the US, but that is changing. Take wind energy, solar PV and CSP (Concentrated Solar Power), for instance: 44%, 35% and 23%, respectively, of new capacity for the next 5 years will be deployed in emerging markets (Exhibit 1). For North American and European companies that have so far focused on domestic markets, emerging markets can thus represent an opportunity for additional revenue, but also a risk for increased costs and diluted market focus. In this article we explore six suggestions to develop and implement a sensible market entry strategy for emerging markets.
Exhibit 1 – Regional breakdown of cumulative and new capacity for wind energy, solar PV and CSP
Exhibit 2 – Example of a company for which market expansion was a necessity, rather than an option
Exhibit 3 – Example of a market strategy that balances domestic and emerging markets, as well as existing and new clients
Exhibit 4 – The Kingdom of Saudi Arabia’s KA-CARE Program
Exhibit 5 – An example of a niche market opportunity (green telecom towers in emerging countries)
Exhibit 6 – Example of a market entry strategy that combines economies of scale and global key accounts with local partners and local presence
Exhibit 7 – Example of a company benchmark and expert interview process
Exhibit 8 – Example of an expansion plan sanity check
 
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Innovation does not need to be cutting edge, it only needs to solve a problem: three reasons why wind energy is borrowing solutions from the construction sector.
Romeu Gaspar
 
The global onshore wind sector is expected to grow 19% per year till 2015. Not as much as it has grown in the past (28% per year from 2006 to 2011) but still very respectful for a sector that is rapidly approaching market maturity (Exhibit 1). One of the key drivers fueling this growth is LCoE (Levelized Cost of Energy) reduction, either by improving efficiency or by decreasing costs. Concrete towers do not contribute to the former, but can contribute to the latter. Read on.
Exhibit 1 – 2006-2015 global wind power installed capacity (GW)
Exhibit 2 – Cost breakdown and impact on system performance for the main components of an illustrative Wind Turbine Generator (WTG)
Exhibit 3 – Illustrative industry maturity curve for wind towers
Exhibit 4 – 2011-2015 market share forecasts for steel, hybrid and concrete towers
Exhibit 5 – 2005-2010 average new installed turbine capacity per country
Exhibit 6 – Sample of current offering of turbine-tower combinations
Exhibit 7 – Historical evolution of US iron ore and precast concrete prices
Exhibit 8 – 2011-2015 new installed capacity breakdown per region
Exhibit 9 – Enercon’s precast concrete mobile factory in Gujarat, India
Exhibit 10 – 2011 supply vs. demand capacity for major wind park components
 
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The greater good is a worthy motive to address climate change, but it’s not a particularly effective persuasion technique. Routine, reward and social proof work far better.
Romeu Gaspar
 
Simple actions like switching off the lights or turning down the thermostat can lead to substantial savings: studies suggest that behavioral change alone, without any technology update, can result in 5 to 20% carbon emissions savings. The human mind is however far more complex than any machine, and meaningful behavioral changes in this area have proven difficult.
Exhibit 1 – Behavior and technology based carbon emissions savings potential for an illustrative hospital and region
Exhibit 2 – Two examples of leveraging routine - weight loss programs and Durham Water’s social experiment
Exhibit 3 – Two examples of leveraging reward - Gainsharing and RecycleBank
Exhibit 4 – Two examples of leveraging social proof - Yelp and Opower
 
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A personal example of how creating an actual product, instead of merely packaging services into a product, can make a lot of sense.
Romeu Gaspar
 
Productization, or turning services into products, has been a big trend among professional services companies, and for good reason: clients get a more tangible offer and companies get to systematize and reuse their previous work. But what about making an actual, physical product? We did it, and maybe you should too. Read on.
Exhibit 1 - Flowchart for Carbon Analytics, a real-time carbon footprint monitoring tool
Exhibit 2 - Example of the Carbon Analytics interface
Exhibit 3 - Example of the Carbon Analytics interface
 
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More and more, renewable energies are competing against each other, instead of against conventional energy sources
Romeu Gaspar
 
If you read the reports from major energy agencies and industry associations, you might be tempted to conclude there is a bright future where all types of renewable energies will flourish and coexist peacefully. Well, they will not. Much like in any other sector, some technologies will trump others. In this two-part article, we analyze how solar photovoltaic (PV) is beating concentrated solar power (CSP), and how offshore wind is doing the same to wave energy.
Exhibit 1 - Comparison of 2008 and 2010 global wave energy installed capacity forecasts (MW)
Exhibit 2 - Venture Capital, Private Equity and Merger & Acquisition investments in renewable energy (2008)
Exhibit 3 - Typical investor profiles for different renewable energy maturity stages
Exhibit 4 - Sample of reported issued in deployed wave energy devices
Exhibit 5 - Comparison of wave energy and offshore wind installed capacity forecasts (MW)
 
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Romeu Gaspar's picture
More and more, renewable energies are competing against each other, instead of against conventional energy sources
Romeu Gaspar
 
If you read the reports from major energy agencies and industry associations, you might be tempted to conclude there is a bright future where all types of renewable energies will flourish and coexist peacefully. Well, they will not. Much like in any other sector, some technologies will trump others. In this two-part article, we analyze how solar photovoltaic (PV) is beating concentrated solar power (CSP), and how offshore wind is doing the same to wave energy.
Exhibit 1 - The 354MW SEGS CSP plant, built from 1984 to 1990 in California’s Mojave Desert
Exhibit 2 - The 2MW SMUDPV solar PV plant, built in 1984 in Sacramento, the largest at the time
Exhibit 3 - Evolution of PV and CSP global installed capacity (MW)
Exhibit 4 - Venture Capital and Private Equity investment in PV and CSP (2010/2011)
Exhibit 5 - Impact/Probability matrix for CSP technological developments
Exhibit 6 - Impact/Probability matrix for PV technological developments
 
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