Professional Documents
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TABLE OF CONTENTS
Introduction................................................................................................................................... 2 Renewable energy sources Growth............................................................................................ 2 PESTEL ANALYSIS ...................................................................................................................... 3
Political .................................................................................................................................................... 4 Economic ................................................................................................................................................. 4 Social ........................................................................................................................................................ 5 Environmental ......................................................................................................................................... 5 Technology .............................................................................................................................................. 5 Legal ......................................................................................................................................................... 5
JORDAN ........................................................................................................................................ 5 globalization of solar energy ....................................................................................................... 6 solar energy Barriers and challenges ........................................................................................ 7 Solar Energy opportunities ......................................................................................................... 7 Marketing entry and development .............................................................................................. 8 4PS ANALYSIS.............................................................................................................................. 8 SWOT Analysis ............................................................................................................................. 9 Segmentation:............................................................................................................................. 10 Conclusion .................................................................................................................................. 10 Bibliography................................................................................................................................ 11 Appendix: .................................................................................................................................... 12 Politic actions ............................................................................................................................. 12 Supporting data: ......................................................................................................................... 12 The Advantages of Solar Energy vs. Other Renewable Energy Sources ............................. 15 Marketing Mix to create a marketing plan ................................................................................ 15
Tameem ALZOABI
INTRODUCTION
The future will be shaped not only by competitive economic growth or the potentially disruptive scarcities and the consequences of human induced climate change, but also the question whether the world has enough energy resources to fuel continued economic growth and industrialization. Solar energy has growth in recent years due to both technological improvements, cost reductions and policies supportive of renewable energy development and utilization. The solar energy market can be attributed to a number of supportive policy instruments, the increased volatility of fossil fuel prices and the environmental externalities of fossil fuels, and particularly greenhouse gas (GHG) emissions. Theoretically, solar energy has resource potential that far exceeds the entire global energy demand. This report analyzes marketing of solar energy development; Address the key barriers that prevent deployment of solar energy. There are two ways to generate electricity from solar energy: Photovoltaic (PV) and the Concentrated Solar Power (CSP) technology. PV technology is considered to be the most efficient way to generate electricity in a decentralized manner. Solar systems is also called solar energy system, it mainly consist of solar panels, solar charge controllers and solar inverter. In some other solar systems battery are also used.
Tameem ALZOABI
PESTEL ANALYSIS
This section analyzes the political, economic, social and technological, environmental and legal structure in general, and in some cases will specify Jordan as a focused market. Those factors have profound impact on International Marketing. Each of the factors will be analyzed with respect to solar energy sector and will explore current strengths, current challenges, future prospects and future challenges.
Tameem ALZOABI
Political Political responses to the world energy needs have included new policies, legislature, and tax incentives promoting the growth of and investment in renewable energy in order to reduce green house gas emissions. Tax credit and incentives strengthen the ability of renewable energy companies to be successful by cutting the costs of operations. Governments start driving the renewable energy development forward by providing research funding and creating incentives for the companies to make necessary, capital intense, long-term investments. The government of Jordan now looking in to new energy strategy that will aim to reduce Jordans dependence on imported oil and gas to generate power and electricity. The latest government of Jordan had removal of subsidies on petroleum products, and removed all TAXs on all renewable energy products by Nov. 2012. Econom ic Solar energy has a positive impact in not only the solar economy, but on the national economies of countries as well. This source on energy will decrease the use of imported oil as an energy source Solar energy already has a tremendous effect on the world economy. This sources got benefits on economy, directly and indirectly. It reduce homes use of traditional energy sources, help keep natural ecosystems intact, reduce tax payer and potentially devastating oil spills like the recent BP disaster along the US Gulf Coast. Domestically, the US market for PV is expected to be around $27 billion dollars by 2020 according to the Department of Energy, and directly indirectly create 150,000 new jobs. Practically speaking, solar energy also allows countries without a grid infrastructure to power isolated areas, and individuals to power their own home independently, constantly receiving a free source of energy from the sun, if the photovoltaic solar panels generate more energy than the home users, can be sell back energy to local utility company.
Solar panels manufacturing price has dropped since 1980s, with increasing in efficiency ( Figure 4). Those panels can be considered in countries with large in non-arable land such as deserts, like Pakistan, India, China, Africa, and Middle East.
Tameem ALZOABI
Social Comfort as the user feels more comfort by finding hot water/electricity available all day long. Solar energy is a global energy resource conserved and not wasted. In addition that it is safety to produce energy safer than electricity, burning, fuels, no risk of dangerous hazards. It is has sustainability, will never run out. Health; no dangerous waste dumped to the environment keeping it clear and green. And sure it's a wealth solution for saving money. Environm ental If current trends of burning oil and coal continue, the global temperature could climb so high, with air and water poisoning. Research has shown that with current technology, renewable energy sources like solar can provide almost primary energy demand. On the other hand, solar energy requires only a one-time production of equipment, it rates far lower in environmental damage than other energy production types. Again, solar energy has no by-productions, no substantial raw material consumption aside from initial construction of panels and little waste material. In fact, even after 25 or 50 years, when the solar panels fail, they can still be recycled to another new solar panels. Technology The technological innovation of solar energy enables solar panels to capture the heat of the sun and utilize the energy to generate power and electricity for homes, buildings and cities. Solar panels help maximize the earth's resources and conserve energy. Legal A number of federal laws, regulations, and Executive Orders apply to solar energy development activities worldwide. For the most part, state laws and regulations do not apply to solar energy development. Jordan has taken steps for development of its solar resources, Renewable Energy & Energy Efficiency Law in 2010. This law allows local companies to work directly with the Ministry of Energy to develop new projects. Were the national electric power company will be obligated to purchase any and all electricity produced by renewable energy power plants and cover the cost of connecting renewable energy projects to the national grid. As well as small-scale renewable energy projects are able to sell excess electricity back to the grid at retail value. In addition, many of the laws provisions benefit large-scale renewable energy projects. The government has been in consultation with advisors and the private sector concerning provisions to support small-scale projects.
JORDAN
Jordan faces challenges in the energy sector, Since the Iraq invasion of 2003, Iraq stop providing oil with the preferential prices, now after the Arab spring, Jordan buys the oil from international market at a 60% higher than it was buying. In addition to gas crises with main supplier (Egypt), that led to stop pumping gas to Jordan. The rising demand due to population growth, Jordan imports 96 percent of its oil and gas, which accounts for almost 20 percent of the Countrys Gross Domestic Product (GDP).
Tameem ALZOABI
2008
Imported Electricity, 2%
Renewable
Energy,
2%
Imported
Electricity,
1%
Natural
Gas,
29%
Renewable
Energy,
10%
FIGURE 5 JORDAN ENERGY RESOURCES
Oil, 60%
Oil, 40%
Knowing that energy trade is biggest business, made above reasons significant driver of energy globalization, with a technology developing rapidly, solar energy driven to globalize, as any other source of energy.
There are other barriers as well, including siting and permitting challenges for the solar power plants themselves and for the transmission lines that connect them to the grid, higher perceived technical risk, high ratio of capital to operating costs, and policy uncertainty. However, the barriers noted abovehigher costs, the need for new transmission capacity, and variability of outputare currently the most significant.
Tameem ALZOABI
Manufacturing photovoltaic cells PV invertors to market locally and regionally. Participating in turnkey projects in solar energy farms in Jordan and regional markets. Manufacturing solar water heaters. Developing training programs to facilitate installation of photovoltaic technology in the region because of the strategic location of Jordan. Establishing R&D testing facilities for energy. Establish regional offices in Jordan to offer services in renewable power operation solutions and renewable energy infrastructure such as Independent Power Producer (IPP) projects to serve local and regional markets Services include information, investment opportunities, liaising with public and private sectors, tax exemptions, and investor follow-up.
4PS ANALYSIS
Study and understand the perspective of consumers rational and emotional attitudes towards solar technology. These attitudes affect the desire to purchase. Consumer reaction to solar technology (e.g., price, reliability, quality issues) the concerns and issues that prevent sales. For International marketing, solar power needs to be evaluate the following:
Tameem ALZOABI
Product Solar power solutions are having deferent types depending on the end customer, some installations are small, other are hug setups that will involve inverters, panels, batteries cabling, in addition to services contracts. Price One of the biggest barriers to the solar marketplace is the price; many countries are addressing the financing of solar to help overcome consumer price concerns. Today, financing mechanisms are broadening access to solar power and making it available to new customer. Place Channels through which solar is sold, such as websites, distribution channel, strong supplier network to keep up with rising demand; ensuring that customers can easily find. Prom otion Solar should be a primary focus as Jordan programs seek to increase the visibility of solar installations and broaden the appeal of their solar incentive programs. Using communications and promotional strategies to favorably present solar in the marketplace and ensuring that the right messages are presented to the public will help build a stronger market for solar technologies.
SWOT ANALYSIS
Tameem ALZOABI
SEGMENTATION:
Better understand for customer through market research, focus efforts on specific target customer bases (customer segmentation), and address key messages to reach those audiences effectively and efficiently (communications) G eographic Segm entation: Solar panels are most efficient in areas of no shade and have a southern facing roof. Which is typically for most of householders in Jordan. Dem ographic Segm entation Two types: residential and commercial customers. Residential: small roof, low demand for electricity, less money to spend. Commercial: larger roof space, lots of energy consumption, more money to spend. The total population of Jordan is 5,595,000 and the demographic distribution for Residential area is all over Jordan with high density in major 3 cities. Commercial Customers are only in the capital Amman, Irbid and Aqaba. Psychographic Segm entation People interested in buying solar panels have common values and needs. They want to save money of electricity, help protect the environment. reduce hundreds pounds of C02 emissions that will be saved over the lifetime of the panel, money will save, that they will break even on their investment, and overall rate of return.
CONCLUSION
To conclude, solar energy can be harnessed in different levels around the world. Depending on a geographical location the closer to the equator the more "potential" solar energy is available. Solar power has great potential; the global total of solar PV was roughly 67 GW at the end of 2011, to be compared with just 1.5 GW in 2000 It would also appear that solar, wind or biomass would be sufficient to supply all of our energy needs; however, the increased use of biomass has had a negative effect on global warming and dramatically increased food prices by diverting forests and crops into biofuel production. As seen, solar panels can also face high installation costs and damage easily. Direct subsidies alone cannot lower the cost barrier; the availability of low interest loans is also essential, especially for low-income households. There should be suitable financing mechanisms to help overcome the investment barrier, quality labels or technical standards to ensure high performance levels of installations. More generally, there should of course be complementarity between financial incentives, public information and awareness campaigns. Such campaigns are intended to stimulate public interest in solar power; consumers must still be given the possibility to acquire solar energy solutions installations. The Electricity Law, as well as the Government Energy Policy open the door for private sector to invest in power generation projects. To encourage the private sector to invest in electricity projects, the government has requested proposals from Independent Power Producers (IPPs) for development and implementation of different types of power generation projects on a Build, Own, and Operate (BOO) basis. Solar Energy Is the least site-specific among the renewable energy sources. As sunshine is more or less everywhere, so solar power can be everywhere. Solar energy has two primary applications; thermal and photovoltaic. Solar thermal energy is used either for direct applications such as heating water and drying grain, or for indirect applications such as generating steam for producing electricity. Photovoltaic (PV) energy is used to produce DC (Direct Current) electricity directly from sunlight.
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BIBLIOGRAPHY
(2010). 5 IMPACTS OF SOLAR ENERGY DEVELOPMENT AND 5 IMPACTS OF SOLAR ENERGY DEVELOPMENT AND. BECK, F. a. (2004). Renewable Energy Policies and Barriers. (E. o. Energy., Ed.) BP. (2012). Solar Power. Retrieved from bP: http://www.bp.com/sectiongenericarticle.do?categoryId=9025019&contentId=7046515 Global Energy Statistical Yearbook 2012. (n.d.). Retrieved from http://yearbook.enerdata.net/renewablein-electricity-production-share-by-region.html Jha, e. Trade Flows, Barriers and Market Drivers in Renewable energy supply goods. Maguru Consultants and University of Warwick. International Centre for Trade and Sustainable Development (ICTSD). Komor, P. (2009). Wind and Solar Ectricity challenges and opportunities. USA. Marketing:, K. o. (1999). How to Create, Win, and Dominate Markets. mostafa, M. renewable potential in the arab region. ciro. Tom Lutzenberger. (n.d.). The Impact of Solar Energy. eHow . Tsoutsos, T. (2005). Environmental Impacts from the Solar Energy Technologies. P. V. Kamat, "Meeting the Clean Energy Demand:," J. Phys. Chem. C 111, 2834 (2007).
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SUPPORTING CHARTS:
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There are tow type of products to have a solar energy solution Goods: panels, transformers, inverters, necessary construction equipment. Include all the equipment needed, spec sheets, and warranty info to better inform the customers. Services and ideas: expert and experienced salespeople, engineers, and installers. Perform analysis of the property and financial implications of the purchase. Perform maintenance at no charge if anything breaks. Price The total initial price is usually pretty high. Use marketing to get the client to think of the purchase as an investment, rather than a huge expense. Place Salespeople need to be available to travel to the individual sites to perform the analysis, and go wherever they need to close the sale. Prom otion Advertising: newspaper, TV, radio, billboards, social media. Personal Selling: very important. Solar Panels are complex and customized. Meet face to face with the potential buyer to understand their goals and resources. Public Relations: events and conference to highlight the importance of solar energy and usefl used as well report new developments in the renewable energy industry. Sales Promotions: Local and federal tax credits and rebates are available to those who invest in solar. Under the right circumstances, the government will pay for nearly half of the total purchase. This drastically reduces the net customer investment and increases the motivation to buy.
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