Innovation College Class Project & Presentation for Airtricity, Renewable Energy Company

2. 2020 Innovation
Rory Finegan
Gerry Cassells
Brian Andrews
Maria Doyle
Brid Considine
Brendan Maguire

3. ◦ Eirtricity founded in 1997 by Eddie O'Connor
 Renamed Airtricity in 2002
• Sold in 2008 for over €2billion
• Owned by Scottish & Southern Energy, SSE
• Supplying Gas as well as Electricity since May 2010
• 300 staff, 375,000 Irish residential customers
◦ Projects across Ireland, U.K., Europe and
China
• Mostly onshore and offshore wind farms but also hydro, marine,
biomass and solar projects

4. ◦ To provide the energy people need in a reliable
and sustainable way
◦ Large player committed to renewable energy
generation, profits circa €2billion p.a.,
investment in renewable energy projects of
approx. €1billion p.a.
◦ Interested in buying the ESB and Bord Gais if
Irish government will sell

5. Irish Electricity Market Size
Peak Demand in Ireland is approx. 5,000MW
Renewable Sources approx. 14%, mostly wind
Deregulation achieved during 2011
Target is that 40% of electricity consumed in Ireland
is from renewable sources by 2020

6. Consumer Market Share
Source CER June 2010

7. Renewable Energy Sources
◦ Wind Power, Onshore and Offshore Wind Farms
June 2010 1,379 MW Wind capacity installed. Potentially 6,000 MW Capacity by 2020
◦ Hydro Power
Gov. incentives to build hydro power plants
◦ Tidal and Wave Power
Targeted 500MW of ocean energy by 2020
◦ Geothermal Energy
Heat stored in the ground
◦ Solar Energy
Transform energy into heat with high insulation
◦ Biomass,
Wood, Animal Waste
◦ Bio-fuel
Biomass upgraded to provide bio-energy. Wood Pellets, Straw

8. Airtricity PESTLE Analysis
Political Technological
 Government target of 40% of  R&D activity
electricity needs from renewable  Rate of change in alternative renewable
energy by 2020 technologies
 Renewable energy sources part of  Energy management for consumers
strategy to reduce Co2 emissions
 Security of supply, less reliance on
oil
Environmental
Economic  Global warming
 Fully deregulated market may attract  Renewable technology seen as green
new entrants into Supply market technology
 Cost of Renewable energies more
expensive than conventional sources
 Cost of grid connections
Legal
 EU directives & legislation
Sociological  Commission for energy regulation
 Opposition in some areas to wind responsible for open market in
turbines electricity
 Attitudes to green agenda

9. Pyramid of EU Influences
Commission
Energy
Dept of Communications,
Energy & Natural Resources
Commission Environmental
for Energy Lobbyist
Regulation Organisations
Suppliers: ESB, Peer Groups
Airtricity, Bord (Environmental)
Gais
Families & Businesses

10. Market Segmentation

11. Point of View
40 year old family
man, budget
conscious, looking
for competitive deals
from household
utility suppliers.

12. David, 40 At least we can afford our house
husband & father
Spending time with
My kids
Have to budget carefully
Holidays in Ireland
Good value for money

13. Our Innovation Approach for
Airtricity
 Renewable Sources, huge potential for
innovation in the energy generation part of
the business, quite technical.
 Products, requirement for innovative sales
and delivery strategies to compete for and
retain customers in the deregulated market.

14. Airtricity Financial
 Customer Deposits
 Invested in
Renewable Energy
 Interest set off
against bills
 €20k invested = free
electricity

15. Airtricity Green
 Joint initiative with
National Lottery
 “The Green Card”
 Profits invested in
Green Energy
Projects and R&D
 Propel Ireland to
become a world-
leader in Green
Energy

16. Airtricity Energy Management
 Managing Energy
Requirements for large
campus businesses
IBM Dublin

17. Airtricity Geothermal
 Utilising peatlands
through Ireland.
Generate electricity
on a large scale.

18. Airtricity 3rd World
 Allow 1% of bill to
invest in renewable
energy in lesser
developed
organisations. Output
free of charge to users
e.g. Hospitals, Schools

19. Airtricity Automotive
 Electric car rental in
urban areas.
 Joint venture with an
electric car
manufacturer.
 Consolidate Airtricity’s
image as the leading
supplier of providing
electricity by renewable
energy sources.

20. Airtricity Renewables
 Generate electricity with
use of wind turbines and
solar power in the
community. Partnerships
with householders,
businesses and
community groups.
 Excess surplus sold onto
National Grid through
smart meters.
 Installation costs offset
by the price of surplus
electricity.

21. Focus Group
 Focus Groups
 Class participants
involved in Focus
Groups on
Innovative Airtricity
Products

22. Focus Group
Airtricity Financial
 Customer Deposits
 Invested in
Renewable Energy
 Interest set off
against bills
 €20k invested = free
electricity

23. Airtricity
 Recommendations
◦ Airtricity Financial
◦ Airtricity 3rd World
◦ Airtricity Automotive

24. 2020 Innovation
Rory Finegan
Gerry Cassells
Brian Andrews
Thank You
30th March 2011