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Competitive Solar Business Models for the GCC. Aaron Morrow 4/14/14. The Solar Business Model If it ain’t Broke?. Declining Module Prices. 136 GW through 2013. Imminent Grid Parity. Global Solar Business Models What is the Business Model?. Value Proposition. Value Creation. - PowerPoint PPT Presentation
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Competitive Solar Business Models for the GCC
Aaron Morrow4/14/14
The Solar Business ModelIf it ain’t Broke?...
136 GW through 2013
Declining Module Prices
Imminent Grid Parity
Value PotentialValue Creation
Value Proposition
Customer Segments
Global Solar Business ModelsWhat is the Business Model?
Regulations and
Incentives
Market• Competitive rates• Attractive returns• Stable returns• Ancillary services
Societal• Environmental• Job Creation• Future Benefit
Key Activities• Financing• Project Dev.• EPC• Construction
Management
Key Resources• Capital
Key Partnerships• Finance
Institutions• Developers• EPC
Customer Relationships• Project Sales• SPSA/PPA/
Lease
Sales Channels
• Project Dev.• Project
purchase• Retail Sales• RFPs/Tenders
Value Creation Value Potential
Value Proposition
GCC Solar Business ModelWhat’s Different?
Market•Opportunity cost
of fuel• Ancillary services
Key Activities
Key ResourcesCapital
Key Partnerships
Customer Relationships
Sales Channels
Societal• Resource
preservation• Energy security• Capacity
development• Environmental
Regulations and
Incentives
Customer Segments
GCC Solar Business ModelThe GCC Value Proposition
Market•Opportunity cost
of fuel• Ancillary
Services
Societal• Resource
Preservation• Energy Security• Capacity
Development• Environmental
• 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
• 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
Value Potential
GCC Solar Value PropositionImplications on Value Potential
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
• Utilities• Government or Governmental
Agencies
Value Creation
GCC Solar Value PropositionImplications on Value Creation
Key Activities• Capacity development• Advisory services• Construction Management• Finance
Key Resources• Local experience/content• Grid Integration expertise• Power marketing expertise
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
Value PotentialValue Creation
Customer Segments
• Utilities• Governments• Government
Agencies
GCC Solar Business ModelsModel for Success
Key Activities• Capacity
development• Construction
Management• Finance
Key Resources• Local experience• Grid Integration
Power marketing
Key Partnerships• Regional
Finance• Global OEM• Next
generation technologies
Customer Relationships• Project
Sales/EPC• EOA
Sales Channels
• RFP• Project
acquisition
Value Proposition
Market•Opportunity cost
of fuel• Ancillary services
Societal• Resource
Preservation• Energy Security• Capacity
Development• Environmental
Regulations and
Incentives
