Topic: Emerging Business Models for New and Renewable Energy Commercialization

Outlines:

A successful Business Model must take full advantage of the:

Commercial Environment,

Regulatory Framework,

Financial Incentives available.

Financing  NRET is the initial hurdle!

•         Capture maximum value for the business,

•         Strong core capabilities,

•         Strong partner networks,

•         Provide value for all participants,

•         Respond to consumer requirements,

•         Control key elements of the value chain,

•         Ideally, have multiple revenue streams,

•         Hedge against product and other revenue price changes,

•         Seek Sustainability over time.

But!  Any model can fail if its basic drivers fail

Categories and Characteristics

   Heat and Power

•          Primary Energy usually free (Solar, Wind, Hydro),

•          Direct sale of Heat and Power to end user or utility grid,

•          Key focus:  Conversion of primary energy to Heat and Power, financing

   Renewable Fuels (Biofuels)

•          Biomass costly to grow & harvest, low energy density,

•          Biofuels blended into transport fuels – existing infrastructure,

•          Key focus:  Feedstock supply, biofuel production and distribution, financing

   Alternative Transport Fuels

•          Primary Energy feedstock a major cost component,

•          Distribution may involve substantial infrastructure cost,

•          Key focus:  feedstock supply, conversion to fuels, fuel distribution, financing

Capital Cost is a key focus

Heat and Power Models

Community Wind Models

Multi-party Ownership models for Anaerobic Digesters

Third Party Ownership model

Project Aggregation model

Renewables-as-Appliance models

Retailer Sales model

Standardised Configuration model   

New Construction model.

Environmental Credit Market models

There are many variants of these

Corporate Business models

Farmer-Owned Business models

Engineer/Builder-Owned models

Franchise Business models

Alternative Transport Fuels Models

State Management models

State Ownership models

      Third Party Ownership models

      Private-Public partnership models

      Free Market models

Each of these can be successful in the right environment

No Universal model;  models employed depend on:

•         Energy type,

•         Project Size,

•         The Economy involved.

Govts create the Environment: Business Models Accommodate,

Implementation models may differ from Ongoing Business,

All models will fail if unable to adapt to changes in:

•       commercial conditions,

•       pricing or cost structure,

•       customer acceptance,

Success depends on people involved; partnerships established.

Consumer demand overcomes all!

Thank You!