Paper Example on Unlocking Brunei's Renewable Energy Potential: Exploring the Possibilities of Solar Energy

Introduction

Brunei has one of Asia's largest deposits of oil and natural gas. For this reason, the country's energy demands are primarily met by fossil fuel exploitation. However, fossil fuels, oil, and gas are all non-renewable sources of energy whose supply is not guaranteed into the unforeseen future. As such, there is a need to diversify the energy sector in Brunei with the adoption of renewable energy ventures. Solar energy is the most promising renewable energy venture in Brunei, owing to the abundance of sunlight in Southeast Asia (Embassy of Brunei Darussalam in Tokyo, 2012). Additionally, the overreliance on fossil fuels for energy has been criticized for the destructive impacts of fossil fuel exploitation on the environment.

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The abundance of oil, gas, and fossil fuels for energy production makes the energy costs in Brunei lower compared to the investment cost of alternative energy forms. This deters many entrepreneurs and investors from venturing into alternative energy businesses (Ismail, 2016). Nonetheless, investment in renewable energy is a lucrative business path amid the growing global clamor for a shift to renewable energy. In line with the global call, the Bruneian government is committed to the diversification of the country's energy landscape through support for various renewable energy ventures such as solar energy. To complement these efforts and enable sustainability into the future, it is imperative for entrepreneurs and investors to consider the vast array of business ideas that exist in the renewable energy sector. Consequently, this project finds local solar module manufacturing in Brunei as a potent entrepreneurial idea.

The novelty of the Idea

This business idea seeks to manufacture solar modules locally in Brunei. This is a departure from the traditional solar energy industry, which largely relies on imported solar modules (The ASEAN Post Team, 2018). Brunei abundant deposits of silica sand. It is worth noting that solar glass, solar cells, and modules are made from silica sand. This business, therefore, seeks to rely on local materials and technology for the manufacture of the solar modules solely. The human resources and expertise for this business will also be sourced locally through the local Bruneian engineers and technical consultants. Though a startup, this business venture promises to position Brunei as a regional and global hub for renewable energy and the green economy.

Competitors

The manufacture and sale of solar modules in Brunei have been dominated by established firms. As such, there will be stiff competition for a startup business in this field. The solar energy features both direct and internal competition. Most of the solar modules sold and installed in Brunei are manufactured outside the country and imported by various companies that specialize only in solar systems installation (The ASEAN Post Team, 2018). Most of the solar modules installed in Brunei are imported from China. A smaller fraction of these modules is imported from neighboring countries in Southeast Asia like Malaysia, Taiwan, and Vietnam. There also exist notable established solar systems manufacturers in Brunei. These solar companies are the biggest direct competitors to the solar module manufacturing startup. The direct competitors include Solarmate Malaysia located in Malaysia, GH Solar in Indonesia, Everything Solar in Brunei, and RAG Global Green in Brunei (The ASEAN Post Team, 2018). These are established companies with an expansive financial capability and customer base. The companies provide services ranging from systems manufacturing, procurement, and installation.

Indirect competition comes from other green energy ventures, most notably wind power. Wind energy has not been extensively explored in Southeast Asia compared to solar energy. As a result, the competition expected from wind energy companies such as the Philippines-based SG Eco Industries is not as stiff as that from solar companies and grid power. The unique value of the proposed venture is that the manufacture of the solar modules will be primarily from local materials, technology, and workforce (The ASEAN Post Team, 2018). Local sourcing of the materials from Brunei's vast silica sand deposits is cheaper than the importation of the systems from foreign companies (The ASEAN Post Team, 2018). In return, these solar modules promise to be cheaper hence affordable to most consumers who have primarily avoided the use of alternative energy due to the relatively high costs involved as compared to grid energy.

Business Model

This business idea is motivated by the current overreliance on the grid system of power in Brunei, and the need to adopt a green energy economy for sustainability. This business will target domestic users, small businesses, and light commercial consumers. To reach out to the customers, various media platforms will be employed, including television and radio, and social media. These channels are preferable because they guarantee access to a larger potential customer base (Adams, 2016). For the initial periods of the venture's existence, the major focus will be on consolidating a loyal customer base to establish a solid market presence. To achieve this, 60% of the generated revenue will be plowed back into the business, while the remaining amounts will be used to pay for operational costs like rent and wages. The company will employ a progressive growth strategy whereby the business will start off by manufacturing lighter solar modules(10watts to 100watts) for domestic and small business consumption before embarking on the production of bigger commercial solar modules(over 250watts). This strategy cushions the business from financial strains occasioned by overwhelming running costs. Also, the strategy enables systematic acclimatization to the operational environment hence enhancing business sustainability and competitive performance (Xia et al. 2018). The business model is summarized in the lean canvas below:

Problem

Oil, gas, and fossil fuels are non-renewable thus unsustainable into the future

The currently available solar panels and systems are imported hence relatively expensive.

The generation of grid electricity from fossil fuels is harmful to the environment. Solution

Solar energy is renewable hence sustainable

Local production lowers the costs incurred by consumers.

Solar energy is environmentally friendly.

Unique Value Proposition

The venture seeks to locally produce high-quality solar modules from local materials and technology to bridge the existing gap in terms of cost to make solar energy more affordable to the people of Brunei. Unfair Advantage Customer Segments

Homeowners.

Small and medium businesses.

Key Metrics

Cost of energy

Reliability of power supply

Sustainability of power supply Channels

Radio and TV

Social media

Blogs

Trade fairs Cost Structure

Raw materials

Premises

Advertising and distribution

Human resource Revenue Streams

Direct sales model

Sale of panels

Installation of panels

Servicing of panels

Sale of other solar equipment

The Prototype

Solar modules work by converting solar energy from sunlight into electrical energy that can be used to run various devices. To achieve this, the solar module is made out of an assembly of photovoltaic cells(cells that convert sunlight into electricity) that capture sunlight and convert it to electricity, which powers electric devices (Union of Concerned Scientists, 2015). The transition of energy from sunlight to electric current is illustrated by the diagram below:

The module is embedded within a rigid frame to enhance power conversion efficiency and protect the solar module. The module is sandwiched between tempered glass and optical sensor at the top and an aluminum base at the bottom. The edges of the panel are also framed with aluminum material. The topmost glass layer is made with tempered glass made from locally sourced silica sand. The glass helps focus the sun rays onto the light sensor underneath to enhance the energy-harvesting efficiency of the module (Union of Concerned Scientists, 2015). Unlike the current panels in the market, the glass layer on this panel, besides being made from local material, is 6mm thick(the conventional panels are 4mm thick). The enhanced thickness enables the panel to concentrate more heat from the sun. Surplus heat can be absorbed by the glass and released to the module during periods of darkness or prolonged low light. The module is made from silicon doped with phosphorus to generate dipolar cells capable of generating electric current (Union of Concerned Scientists, 2015). The aluminum base and frame confer strength and support to the panel. The detailed structure of the panel is shown below(the concrete represents the aluminum component):

The completed solar panel made from the assembly of the components described above is shown in the diagram below:

Marketing Funnel

The marketing funnel provides an elaborate strategy to attract and retain customers to a business. The funnel entails the establishment of awareness about the product or service to prospective clients and the subsequent conversion and retention of active and loyal clients. This fosters the growth and competitive performance of a business. The marketing funnel is a continuous process; obtaining one cohort of loyal customers marks the beginning of the next phase of business campaigns to get and retain more clients (Adams, 2016). The top-down components of the marketing funnel include awareness, interest, consideration, conversion, loyalty, and advocacy.

It is imperative to create awareness and interest in the business to get users for the proposed solar panel business. The task here is to let the general populace aware of the existence of the solar panel company. This will be achieved through a rigorous awareness campaign through the internet(social media, blogs), the mainstream media(radio and TV), and through local trade fairs and exhibitions. The consideration and conversion components of the funnel will be used to activate users for the solar panels. To rouse consideration, the business will emphasize the unique value proposition of cost-effectiveness and sustainability of solar energy over grid electricity. The business will use various incentives such as discounts and subsidized installation costs to activate more customers to activate users. To retain customers, the business will use regular loyalty discounts for loyal customers. The business will regularly interact with customers about new products and services through emails. Loyal customers will be used as valuable assets to attract and retain more customers in continuation of the marketing funnel (Xia et al. 2018).

Conclusion

The proposed local production of solar panels is a viable venture that stands to boost the clamor for alternative energy in Brunei significantly. The company also provides a platform for the incubation of local technical expertise in alternative energy exploitation. This promises to cushion Brunei from any possible future energy crisis occasioned by the imminent depletion of non-renewable energy reserves (Huang et al. 2019, p. 718). However, solar energy is still relatively expensive compared to grid power in Brunei due to grid imparity (Islam & Yazdani, 2018). Despite this weakness, solar energy is a promising prospect, and solar panel manufacturing is integral to the furtherance of this prospect.

Referq3ences

Adams, R. L. (2016). Startup Marketing: 23 Online Marketing Strategies to Help Create Explosive Business Growth. Hyperlinked https://dl.acm.org/citation.cfm?id=3074195

Embassy of Brunei Darussalam in Tokyo. (2012, March 17). Business in Brunei...