Architecture of economic business model in the wind power service industry

Resumen

Abstract In the world of Renewable Energies and in particular in the Wind Energy Sector, one can find a tremendous amount of power installed thought wind turbines all over the world. This market has been developing in a very small amount of time, and it clearly lacks of a solid theoretical structure to be served. The objective of this analysis is to develop a business model that can be applied to any country or region in the world. As examples, the markets of Spain, Italy and Brazil have been taken. The reason is that, these three countries represent the three types of markets that one can find. A mature market like it is Spain, which occupies a very significant position. Its installed Power exceeds 23 GW. Only Germany, USA and China go beyond this figure. However, the Spanish wind farms are those who reach the highest performance in terms of electricity or potential served to the general electric network. Concerning the service of maintenance for wind farms Spain holds the second place turnover wise since the American and Chinese market are younger in this area and require less maintenance at the moment. And last but not least an intermediate market like Italy and a strong emerging market like Brazil. Moreover, within the wind turbines one can find two types which are clearly distinguishable in respect of the applied technology for generating the electricity which afterwards is delivered to the network. The multipolar type (with about 10% of the market) or through gearboxes and generators (=Power train) (with about 90% of the market). The aim of this document is only the Power train type. In addition, my doctoral thesis will deal with the investigation of the Corporate Strategic Business Model for the introduction and development of the gearbox service in the wind sector. With a sole focus on ¿On-Shore¿ Services (services on the ground, not at sea shore). Until two years ago approximately, the world leading manufacturers within the wind turbine sector were European manufacturers. Nowadays one can find also Chinese brands which are still having some difficulties to fully enter in the business. Generally speaking, the manufacturers of the turbines acquire the gearboxes from manufacturer specialists when manufacturing the turbine. This is the case of MOVENTAS, my company (www.moventas.com). On European level, Moventas holds the third place in manufacturing and the fifth place at global level. It¿s present in the ten most important countries for Renewable Energies. Its turnover in 2009 was 237 million Euros. Abstract XXVI It has to be emphasized that until two years ago, when the wind crisis started, the wind market was characterized by a quasi-exponential growth, where the manufacturing companies, such as those of turbines as well as those of any other specialist components, didn¿t paid attention to service and maintenance of wind farms in general and of wind turbines in particular. The waiting times for the delivery of a wind turbine exceeded two years and almost in no case they were repaired. With the arrival of the Global 2008 financial crisis the companies weren¿t fabricating any longer the same quantities as usual, since there was a significant reduction in the installation of wind farms. This macroeconomic phenomenon obliged the companies to focus more on the direct service. The battle of introducing those companies in the service of wind turbines started about two years ago. The servicemarket is slow, where transactions vary between 30.000 euros and 300.000 euros. It¿s a very specialized field where it wins who disposes of the best corporate and commercial model. Moventas expects a turnover of about 100 million euros this year, a 30% more than last year. The thesis will have an introductive part where the product and the market would be presented. I would investigate what has been done in the past, what was requested by the market, how the reaction of the manufacturing companies of wind turbines was and how gearbox specialists reacted. Which is the current situation on the market, which is the actual infrastructure, what are they doing right now, which are the facts which govern this small market at the moment, which variants are there, which alternatives can they offer, which relation have the customers between them, the maintainers of the wind farms, the manufacturers of the turbines and the manufacturers of the components, which alliances are the most advantageous, where are the commercial limits. Which route has to be taken in the future, what consequences has going ahead with new ideas, how they are accepted in the general market and which limitations they will identify. To sum up, the thesis would have two parts. One that shows what is the actual status, and a second one that studies a potential business model to be applied. In my function as General Director of Moventas South Europe and North Africa, these are under my responsibility. Additionally I hold responsibility of Global Account Manager for all Iberian companies in the wind sector. That means I`m responsible for Iberdrola, Acciona Energía, Acciona WindPower, EDP and Gamesa.