News |
David Francis Stewart Natusch, Managing Director,Resource Development Ltd,delivers a speech on the 2011 World Emerging Industries Cooperation Conference |
2011/5/20 |
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 |
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