Wind Turbine Manufacturer Internationalisation Study
On behalf of a private equity group, Navigator Consulting Group implemented a feasibility study and due diligence for a Ukrainian manufacturer of wind turbines. Based near Kiev, the manufacturer assembles small-scale turbines of 1, 2, 5, 10 and 20 KW output, combining these with storage batteries and other components sourced externally.
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Client:
Ukrainian Wind Turbine Manufacturer
Date of Engagement:
February - April 2010
Countries of Operation:
France, Spain, Italy, Portugal, Greece, Cyprus, Lebanon, Jordan, Egypt
Business Function:
Investment Advisory Services
Business Sector:
Renewable Energy
The objective of the study was to determine the financial potential for expanding international sales. The target markets included France, Greece, Italy, Spain, Cyprus, Portugal and 3 MENA countries: Lebanon, Jordan, Egypt.
The product is intended for household use in rural areas or for small-scale commercial applications in remote areas, e.g. tourism, farming, etc.
The study included the following components:
- Assessment of legal and licensing regimes for micro-power generation of renewable energy using small-scale wind turbines in rural and suburban areas;
- Identification of project financial break-even and return rates taking into account sales of energy to the national grid at prevailing feed-in tariffs, or using the energy generating in place of electricity purchased from power generators;
- Evaluation of market potential per country and development of a sales and financial model with a 5-year time-horizon;
- Planning of start-up and operating costs and additional resources needed for market launch;
- Competitor evaluation, with a particular emphasis on Chinese imports;
- Risk assessment
The project revealed interesting commercial potential; the client has proceeded with strengthening export sales.
