Electricity Distributors
Section: Business Cases
Many electricity distribution companies consider geoexchange a threatening technology, like all renewable energies. We see the relationship however as a possible alliance: in an uncertain world, where it makes little sense to hold large fixed assets, companies often need to dilute and mitigate risk. What better way to do so than to leverage already existing competencies in infrastructure and financing and general expertise in the energy markets?
Typical electricity distributor’s business competencies
- Infrastructure expertise in design, construction and management
- Financing expertise & purchasing expertise
- Possible B2B customer servicing expertise
- Strong understanding of DSM
- Regulatory expertise
Geoexchange builds on each of these competencies.
Areas of alignment with electricity distributor’s corporate objectives
- Dilute/Mitigate total long-term corporate risk.
- Capitalize on infrastructure competencies.
- Installations Profitable Per Se (IRR of 15% to 60%).
- Installation can be 100% outsourced if desired.
- Financing tools add great flexibility.
- Dramatically expand customer base over time.
? capturing new customers – target commercial customers to build on corporate relationships
? “lock customers in” for company’s choice of time period
? expand customer base when and how desired – large target to segment - Service new clients without building investing heavily in single high-stakes projects.
- Open or grow corporate alternative energies portfolio.
- Strong addition to corporate marketing portfolio.
- Mitigate overall corporate risk in an era of uncertainty.
- Mitigate Kyoto political pressures and improve relationships with regulators.