Presentation Transcript

1. Competitive Solar Business Models for the GCC Aaron Morrow 4/14/14
2. The Solar Business ModelIf it ain’t Broke?... Declining Module Prices 136 GW through 2013 Imminent Grid Parity
3. Global Solar Business ModelsWhat is the Business Model? Value Proposition Value Creation Value Potential Societal Environmental Job Creation Future Benefit Customer Segments Customer Relationships Project Sales SPSA/PPA/Lease Key Partnerships Finance Institutions Developers EPC Key Activities Financing Project Dev. EPC Construction Management Regulations and Incentives Sales Channels Project Dev. Project purchase Retail Sales RFPs/Tenders Key Resources Capital Market Competitive rates Attractive returns Stable returns Ancillary services
4. GCC Solar Business ModelWhat’s Different? Value Proposition Value Creation Value Potential Societal Resource preservation Energy security Capacity development Environmental Customer Segments Customer Relationships Key Partnerships Key Activities Regulations and Incentives Sales Channels Key Resources Capital Market Opportunity cost of fuel Ancillary services Customer Segments
5. GCC Solar Business ModelThe GCC Value Proposition Energy infrastructure heavily dependent of depletable resources High unemployment Concern of history of PV development Concerns about carbon intensity and global trends towards lower carbon footprint Societal Resource Preservation Energy Security Capacity Development Environmental Market Opportunity cost of fuel Ancillary Services Real value of the energy is not directly experienced by final consumer No market pull from retail side Society as a whole indirectly pays for fuel Opportunity/production cost of consumed fuel Market cost of imported fuel Real benefits for managing grid issues Customer Segments
6. GCC Solar Value PropositionImplications on Value Potential Value Potential Customer Segments Utilities Government or Governmental Agencies Customer Relationships Project Sales/EPC New model for finance Revenue Ownership Sales Channels RFP/Tenders Some project acquisition Limited opportunity for retail sales Customer Segments
7. GCC Solar Value PropositionImplications on Value Creation Value Creation Key Partnerships Regional finance institutions Traditional finance Sharia compliant finance Global OEMs Local manufacturing= Local jobs Next generation technologies Regionally specific advantages Market specific value Differentiable global value Key Activities Capacity development Advisory services Construction Management Finance Key Resources Local experience/content Grid Integration expertise Power marketing expertise
8. GCC Solar Business ModelsModel for Success Value Proposition Value Creation Value Potential Societal Resource Preservation Energy Security Capacity Development Environmental Customer Segments Utilities Governments Government Agencies Customer Relationships Project Sales/EPC EOA Key Partnerships Regional Finance Global OEM Next generation technologies Key Activities Capacity development Construction Management Finance Regulations and Incentives Sales Channels RFP Project acquisition Key Resources Local experience Grid Integration Power marketing Market Opportunity cost of fuel Ancillary services