Comparative Market Research - Renewable Energy - Comparing Seven countries - Current state and future challenges
1. The IPCC - International Panel on Climate Change, recently released its timely report on climate change and
global warming, a bleak snapshot of the current situation and a gloomy outlook
for the foreseeable future, including a reference to the Middle East region and
possible implications for our future and our children's future. [1]The
impairment of the sun's ability to return sun's rays back into space is
primarily attributed to emissions of gases that damage the texture of the
atmosphere.
2. The first report of "Intelligence
Club" hereby presents market
research that comprehensively reviews the existing and future state of the
renewable energy market in several European countries (Portugal, Germany,
Iceland, Austria, Norway), a major African country (Sudan), and an important
sultanate in the Middle East (Oman).
3. Alongside the reflection
of the current state in each
country, the countries are compared in different aspects, based on accepted
models.
1. We found that all the countries we analyzed have a state plan for developing
renewable energy-based infrastructure,
aiming at 2050 or under.
2. Addressing renewable
energy applications for the
benefit of agriculture development, we found that most countries designate part
of the energy supply in favor of agriculture, in Oman we found that there is a
dedicated plan for future development.
3. In analyzing the current situation, we found that most countries have identified
and exploited renewable energy sources in their territory. However, bioenergy
and geothermal energy are not the domain of all countries of comparison. Norway
is an exporter of natural gas while sudan does not know how to produce it
efficiently. We found that in Oman, there is a process of developing wind
energy, and in Sudan, there is a similar process aimed at geothermal energy.
Germany should be named the World's No.2 after China in biogas-based energy
production and utilization.
The data indicate that in the countries of comparison, geothermal energy and bioenergy
are an opportunity for domestic development and foreign companies and
organizations.
4. In analyzing the current
situation concerning the utilization of biodegradable energy sources, we realized that all
countries use at one level or another Fossil fuel as well as coal. Some
countries produce energy based on biomass, and Sudan still uses forest
trees as a basic energy source.
5. Analysis of main uses for renewable energy - it is evident that the emphasis is on
electricity generation as well as for heating and industrial purposes. Some
countries produce energy for land and sea traffic as well as agriculture, with
an emphasis on Sudan, which is its main industry. In addition, there is a
significant difference between the rate of renewable energy utilization and
electricity generation in the most developed countries in Europe (Norway for
example), and Sudan and Oman.
The data indicate that in the field of the transformation of maritime and land
and air transportation there is still great potential for development, which
constitutes opportunities for companies whose purpose is aimed at these areas.
6. Comparing the size of the
country to its population density, we found that although Sudan is a very large
country relative to the other countries,
followed by Oman and Germany, Germany Portugal, and Austria are the most
densely populated.
7. An examination of the cost
of electricity to households and
industry in the comparative countries shows that Germany, Portugal, and Austria
are the most expensive for the household consumer. The comparison also
indicates a clear difference between the price of electricity for households
versus industrial use of electricity. In Oman, we found that electricity for
the industry is more expensive than that of households. We understand from the
data that electricity prices are high, in part due to the broad regulation of
advanced countries regarding harmful emission quotas and the fact that Germany,
where the price of electricity is highest, still uses a large scale of non-renewable
energy sources.
8. And in the same context of the country's level of development and modernity, all
countries are in the range above 0.5 in the Human Development Index, at the
lower end lays Sudan,0.51, and at the top end there is Norway 0.957
9. We found that all countries, both the weakest and most developed, are related to UN
international activities, whether as contributors to knowledge and capabilities
or as recipients of assistance and guidance. This is also true of financial
assistance from UN institutions and regional finance organizations, such as
significant funds that Sudan receives from such entities and banking institutes
in Africa.
There is a clear difference between European countries, which are developed and
cooperate with organizations such as the UN for the purposes of generating and
passing knowledge and promoting projects, and African countries that are in a
very disadvantaged position relative to Europe, which get a lot of attention
from international aid organizations and large financing institutions. This
represents an opportunity for Western companies interested in investing in
renewable energy in cooperation with large organizations that can vouch for realistic
ROI.
10. Compiling the goals of the countries in compare, on renewable energy
development, we found that most state programs are looking 20-30 years upfront,
this is probably based on the feeling that the energy transformation takes
several decades to create a real market that relies mainly on, and perhaps
only, on renewable energy.
We found mutual key goals of reducing coal use, and emissions of toxic gases,
along with many countries' reference to the energy effects on poverty, gender
equality, costs for customers, and full electrification of all traffic. It
should be noted that Sudan, which is on this axis of development, is a long way
behind the rest, where we found that alongside the trend towards the
development of renewable energy, a five-year plan based on coal and fuel was
recently completed, with the clear aim of starting the country's industry (at
all costs).
11. We conclude from the data that the
two primary sources of renewable energy countries put first in development,
focus on solar and wind energy, followed by the development of waterpower
energy and all other sources with a lower priority. This finding represents an
opportunity for companies interested in developing their market with solutions
for this type of renewable energy. In the short term, we suggest focusing on
solar, wind, or hydraulic energy solutions. In the longer term, the
opportunities are with the other renewable sources.
(The full report is available for a reasonable fee)
Findings and insights
from the
countries' comparison based on
Michael Porter's "Diamond"
model:
As mentioned above,
the main analysis model for
comparing the countries is a "diamond" model consisting of 6 criteria
for the country's level of competition (in fact 4 "corners" and to
which 2 more areas of influence were added).
In the
analysis of the countries, we
"dismantled" the state reports according to the 6 criteria above. In
addition, we extracted threats and opportunities the countries are facing. For
each of the criteria, a ranking of the level of competition was given in the
range of 1-7. In the last stage, the rankings of a particular country were summed
over the criteria, and a rough estimate of competitive state was given to all
seven countries.
1. Demand Characteristics -
Customer Sophistication Level - Sudan
1. Many customers are not connected to an electrical grid, and the consumption
for heating and cooking is mainly from perishable sources with an emphasis on
wood and biomass.
2. Gender disparities prevent the development of women and the home economy
and perpetuate the use of basic renewable energy sources for everyday needs.
3. Sudan's population is mostly rural and scattered, not connected to a major
power grid and therefore the goal is to produce local networks that will
provide the basic energy for living conditions, agriculture, and local basic
industry.
4. The west of the country is characterized by local power grids and independent
power plants and is mostly not connected to the state electricity grid.
5. Most of the energy in
Sudan comes from burning
consumables (wood, biomass) for cooking and heating.
6. The country is
experiencing a rapid increase in
energy demand from all sectors
2. Demand Characteristics -
Customer Sophistication Level - Oman
1. Oman's growth economy is characterized by the government's focus on non-oil
sectors. In addition, its population growth (GTR 2018) mainly contributed to a
steady increase in demand. According to Oman's 7-year statement from
procurement and water company (OPWP), the combined demand of MIS, DPS, and
other small and isolated systems may increase from 6,668 MW in 2017 to 10,072 MW in 2024 under its projected case scenario
for demand forecasts from 2018 to 2024.
2. Oman is fifth in production and at the peak of demand in the GCC region.
3. The MIS covers most of the northern parts of the sultanate, serves about one
million electricity customers, and consists of about 90% of the total demand
for Oman's peak electricity.
DPS covers the city of Salah and the surrounding areas of Dhafer Province,
serving about 100,000 customers and contributing 10% of peak demand (OPWP
2018).
3. Demand Characteristics -
Customer Sophistication Level - Iceland
1. Iceland's renewable energy
sources are not only plentiful,
relative to the size of the population, but they are also available at a
relatively low price. For this reason, electricity prices in Iceland are much
lower than in most other OECD countries.
2. The Icelandic electricity market allows all consumers - whether
individuals, businesses, public organizations, or industries that are intense
energy consumers - to choose their electricity supplier.
Transmission and distribution of electricity in Iceland remain under
concessional arrangements and regulatory oversight of the National Energy
Authority or ORKusto nun, under the Electricity Law and other relevant
regulations. The NEA oversees aspects such as pricing (income ceilings and
tariffs), quality, and supply security.
Under Icelandic law, one power company can function as a generator, distributor,
and supplier, however, an accounting separation is required between concession
(power transmission in a particular area) and competitive activity. While
consumers must use a distributor holding a concession to their region, the
distributor does not have to be the same company as the supplier.
Most of Iceland's electricity comes from less than a handful of manufacturing
companies, but there are also several small power plants that feed electricity
directly into a distribution system.
4. Demand Characteristics -
Customer Sophistication Level - Germany
1. Total energy consumption per capita is 2.7 percent
lower than the average 5 percent of the AA country average. Home and industrial
heating consumes over 50% of Germany's total energy consumption and is
generated from fossil fuels (25%) and is therefore responsible for about 40% of
carbon emissions.
2. Buildings: In Germany,
nearly 30 million structures are home
to more than 80 million people. Birth rates are low and there is no great
demand for new homes since the unification of the two countries, only nearly
20,000 homes a year. A significant portion of the energy consumption is not to
produce electricity, but central heating energy intended for heating houses and
buildings. Conversion to natural gas has helped reduce the emissions and
pollutants that this industry emits. As for the loss of energy, only upgrading
the structure can prevent it. Buildings are responsible for 40% of the
emissions, because of architecture and improper construction. Part of the
national energy building efficiency plan includes clogging nozzles and sealing
walls and roofs.
3. Transportation - A very small part of renewable energy production is
consumed by transportation. Germany has set itself a goal of becoming the
leading market and provider of electric mobility by 2020 as part of its
long-term vision for zero emissions in mobility. Although the electricity
market for transportation solutions is still in its infancy from a global
perspective, domestic demand for electric vehicles is on the rise, and with it
the growing demand for suitable infrastructure for charging vehicles and
innovative solutions in the field.
5. Demand Characteristics -
Customer Sophistication Level - Portugal
1. In 2019, electricity covered 25% of the total demand
for final energy, 56% of the demand for building energy, and 25% of the energy
in the industry.
2. Household consumers pay higher taxes than industrial consumers.
6. Demand Characteristics -
Level of sophistication of customers - Austria
1. Austria is stable on
producing 1,425 petajoules, with energy
demand at 1,362 petajoules 2005 and 1,350 petajoules 2016, and energy
consumption at the edge stood at 1,101 petajoules 2005 compared to 1,121 petajoules
2016.
7. Demand Characteristics -
Level of Sophistication of Customers - Norway
1. Norway is considered a young country, separated from Sweden in 1905. Norway is a
large country with a population of 64 in the world and is about 324,000 square
kilometers. Its population is about 5.5 million people in total. GDP per capita
is about $63,000 and the human development index is 0.957. This index
classifies Norway as the first in the world.
2. Internal renewable energy
customers concentrate on various
uses, heating and cooking 16% of renewable energy, 36% for transportation, and
48% for the industry.
3. In July 2020, electricity prices dropped below zero for one hour because of low
exports of electricity and the start of the summer holidays. Over the past 26
years, the population of Norway has increased by 22%, and the value of the
Norwegian economy has doubled. However, the final energy consumption on the
Norwegian continent increased by only 12% in the same period.
8. Ecosystem Characteristics
and Supply Chains - Sudan
1. Solar energy, the first in
development. It has been in
partnership with European companies since 2010.
2. Strong involvement of UN and African organizations to develop the solar field focusing
on irrigation and local electricity supply.
3. The country has 6 central
hydraulic dams that provide a very
high amount of energy to several parts of the country.
4. In the field of geothermal
energy, Sudan intends to learn
from Kenya, the neighboring country, how energy should be generated from this
source.
5. Sudan's energy industry is made up mainly of government companies and entities,
but there is supportive regulation that encourages cooperation with the private
sector and international bodies.
6. There are plans for
capital projects on hydraulic and
solar energy, but there are no suitable investors yet.
9. Ecosystem Characteristics
and Supply Chains - Oman
1. The small DPC system serves areas in the south, which also have
significant potential for wind energy.
The rest of the country is supplied by the AEC mainly through 395 megawatts of
diesel-based manufacturing plants.
2. Natural gas is Oman's main
fuel resource for electricity
generation and related desalination facilities, provided by the Ministry of Oil
and Gas in rural areas that mainly use diesel.
3. Nearly a quarter of Oman's
gas production is used as fuel for
desalination and water facilities, the rest consumed by the country's
industrial and petrochemical industries or sold for export. Due to the growth
of the economy in Oman, domestic demand is rising and therefore the government
feels the need to diversify its energy resources and ease the pressure on
natural gas resources that are already limited. To realize the government's
vision of long-term energy sustainability, Oman adopted its national energy
strategy 2040, which sets the following goals for the electricity sector:
renewable energy accounts for at least 10% of electricity output by 2025.
UP to 3,000 megawatts of coal production can develop by 2030.
Priority for improving the thermal efficiency of gas power plants.
Explored other sources of electricity generation.
4. The distribution and
supply of MIS (The Central
Energy Company in Oman) are carried out by three companies that own
subsidiaries of AHC, namely MZEC and MJEC.
Dhofar Power (DPC) owns, operates, and maintains the distribution network in
the Dhofar area of southern Oman. DPC is currently a distribution and supply
business entity operating in the Dhofar region.
10. Ecosystem Characteristics
and Supply Chains - Iceland
1. Iceland's most
rich energy
companies: Landsvirkjun owned by the Icelandic state. Orkuveita Reykjavíkur / Orka náttúrunnar
owned by municipalities. HS orca is owned by Canadian company Altera Power and a group of
Icelandic pension funds.
2. Landsvirkjun: The
state-owned
Landsvirkjun company is by
far the largest energy company in Iceland, providing about 75% of all
electricity produced in Iceland (12.6 GWh) a year from (16.8GWh). Landsvirkjun is responsible for more than 96%
of all hydro production in Iceland, and its share of electricity generation by
geothermal power is about 11% of the total.
Most of the electricity (80%) generated by Thesvirkjun is sold to high-energy
industries through long-term contracts. the remaining 20% is purchased by
public services and the operator of the Icelandic Gear System (TSO).
Founded by the Icelandic parliament in 1965, it is an independent legal entity
and has 100% state-owned, the Icelandic government guarantees all the company's
loans. The finance minister manages ownership of Thesvirkjun and appoints all
five board members and five alternative members. It currently owns 11 waterpower
plants and two geothermal power plants with a combined capacity of nearly 1,950
MW. Most of the capacity is in waterpower
(nearly 1,900 megawatts), while geothermal stations have a capacity of 63
megawatts. Landsvirkjun is also the main owner of Icelandic transmission system
operator (TSO), with a 65% share.
The waterpower plants of Landsvirkjun produce about 95% of the company's total
production, while geothermal power contributes about 5%. Landsvirkjun is accepting
much of its revenues with foreign currency, because of widespread electricity
sales to large foreign-owned aluminum nifts in Iceland. Therefore, the recent
economic turmoil experienced by Iceland has not affected Landsvirkjun almost as
much as most other Icelandic companies (the depreciation of the Icelandic
currency did not have negative effects on Landsvirkjun's income). Landsvirkjun
is one of Iceland's largest companies and now has more equity than any other
Icelandic company.
3. Orkuveita Reykjavíkur /
Orka náttúrunnar: Orkuveita Reykjavíkur (OR), is a public service company that provides electricity and
hot water for heating. It is the largest local electricity and heating provider
for end users. The company's main service area is the Great Metropolitan Area
of Reykjavíkur. ORs on power generation stations have a total capacity of
nearly 450 megawatts. Most of the electricity from OR is generated in two geothermal factories
that utilize high-pressure steam. Their capacity is 303 megawatts (Elliðaárstöð). In total OR generates nearly 3,000 GWh of
electricity a year.
Besides, it operates an extensive sewage system for the Reykjavik area, as well
as several nearby municipalities.
Each year OR produces and distributes about 85 million square meters of thermal
hot water (for heating an entire district, swimming pools, and industries). The
water from OR comes from low-temperature fields in the city and nearby, and the
heat and power stations are integrated into the Stations of Nessjavellir and
Hellisheiði. Coldwater is collected from reservoirs outside Reykjavik. Running
geothermal heating companies starts in the 1940s. The city of Reykjavik is the
largest owner with a 93.5% stake.
4. HS Orca: HSOrca is Iceland's third power generation company, and
until 2007 it was a publicly owned Icelandic state-owned company and few
municipalities in southwestern Iceland. HS Orka operates two geothermal power
plants, the Svartsengi station, and the Reikines Station, with a total capacity
of 175 MW and generates about 1,350 GWh a year. HS Orca is also a major hot
water supplier and owns several subsidiaries, including a third of the
well-known Blue Lagoon.
5. There are a few other small companies and services in Iceland such as HS
Veitur, Norðurorka, Orkubú Vestfjarda, Orkuveita Húsavíkur, Rarik, and several
other small companies.
6. Importers and fuel distributors:
Iceland currently imports all its hydrocarbon fuel, although there is a
possibility of finding hydrocarbons on the Icelandic continental shelf soon. Several
companies are specializing in importing and selling gasoline, diesel, and other
oil products. The three main companies are Skeljungur, N1 and Olíuverslun
Íslands (OLÍS). Skejljungur uses the Schell brand, while N1 and OLÍS use their
local brands. OLÍS and Skeljungur also operate self-service retail (under the
orkan brands).
Previously, all three companies listed above had franchise contracts with three
of the world's largest oil companies: Shell, Esso (Exxon Mobil), and BP. Today,
however, Skeljungur is the only fuel retailer in Iceland that is still involved
in a franchise partnership (with Shell). Therefore, foreigners traveling around
Iceland will not recognize many well-known international fuel brands.
7. Iceland has one common
electrical transmission system operated
by Iceland's transmission system operator (TSO).
8. Iceland's market for electricity and supply production is under European
Economic Area (EEA) rules. The EEA is based on a legally binding multinational
economic treaty between the European Union (EU) and Iceland, Norway, and
Liechtenstein.
9. Just as in the European Union, the transmission, distribution, and sale of electricity in Iceland are subject to concession arrangements and specific regulatory oversight.
11. Ecosystem Characteristics
and Supply Chains - Germany
1. Germany exports - more than 36% of Germany's electricity output comes
from renewable energy sources - up from just 6% a decade ago.
2. Export technologies: Germany is helping Saudi Arabia
move to use renewable energies and abandon its dependence on oil by funding the
construction of an electrolysis plant in its territory, which will be used to
generate electricity free of polluting fuels.
3. Supportive industries – Large energy aggregation systems will play a
significant role in Germany's future energy infrastructure, even in the safe
integration of the large quantities of solar and wind energy in the existing
network.
4. Supportive technologies – In terms of long-term energy storage solutions, Germany
has recently increased interest in Power to Gas technologies, and these
technologies convert excess electric energy into gaseous fuels such as hydrogen
and are included in the German government's energy storage and fuel strategies
and future mobility.
12. Ecosystem Characteristics
and Supply Chains - Portugal
1. The Portuguese initiative includes professional exposure to the issue,
conferences, and drafting a joint statement to move forward the issue with a
regional joint commitment.
2. All oil,
natural gas, and coal
utilized for energy in Portugal are imported.
3. Funding, the EU's economic
recovery gives Portugal a valuable
opportunity to achieve its ambitious energy and climate goals for 2030. The
main areas: capital-intensive programs related to energy efficiency in
buildings and industry, the deployment of renewable electricity generation and
support for infrastructure, electrification of transportation, buildings and
industry, and the production of sustainable biofuels and hydrogen.
4. In August 2020, EIF and IFD launched PORTUGAL BLUE, a capital investment
of EUR 50 million aimed at fostering the blue economy ecosystem in Portugal,
providing financing to startups, SMEs and Midcaps through venture capital and
private equity funds.
5. Private
operators of two
coal-fired power plants have announced that these plants will be permanently
closed in 2021.
6. In 2019, total
public and private expenditure on energy research and development was 0.07% of GDP.
7. In 2018, the government
established a working group to
analyze Portugal's tax system and ensure its alignment with the transition to
carbon neutrality.
13. Ecosystem Characteristics
and Supply Chains - Austria
1. Austria invests in strong and dynamic renewable energy infrastructure and
optimization for existing infrastructure.
2. Creating a safe
environment for investment in
renewable energy projects.
14. Ecosystem Characteristics
and Supply Chains - Norway
1. Supply chains start in Norway and continue to Europe in a
special pipeline built to transport oil and gas - these markets have risen and
declined over time and have often experienced as much upheaval as in 2016 as
oil prices fall.
2. Norway is part of the
inter-Nordic system, which includes
Sweden, Finland, and eastern Denmark.
3. Norway's transmission
systems company, in collaboration
with Dutch network company Tennet, completed Nordlanek in December 2020, which
is an underwater cable of more than 500km,1,400 megawatts linking the Norwegian
and German electricity market directly for the first time.
4. The North Sea Link, which is about 720km with a capacity of 1,400
megawatts, will connect the Norwegian market and the UK. Completion of what
will be the world's longest underwater link is expected later this year.
Overall, the capacity of connections between the Nordic electricity system and
other systems is expected to increase by more than 50% by 2025.
15. Market Strategy and
Structure of Competition - Sudan
1. Sudan's energy market is largely centralized and under government supervision.
2. Since the state itself is not strong enough in knowledge and budgetary
sources, most of the energy-themed competition is from external companies
interested in investing in projects.
3. The market is growing, and its strategy consists of internal and international cooperation
in favor of developing and promoting projects.
16. Market Strategy and
Structure of Competition - Oman
1. The country's largest
network is the connected central system (MIS), which contains 17 power generators.
2. The MIS is providing electricity to The Capital and six
other provinces, mainly in the north of the country, and its water network
covers Muscat, el Batina North, El Batina South, El Dahiliyah, and Boreimi,
with plans to add El Dhara to this list.
3. OPWP has announced plans to phase out three new solar energy installations and
two new wind energy projects, aimed at providing a total of about 2,500 megavolts
of renewable-based capacity including a 50-megawatt wind power project. (And in
the Helenian Islands) until 2024 (OPWP
2018).
The first independent power generation project (IPP), the 500MW Ibri II Solar
IPP in Villayat Iberi in El Dheira
province, is expected to run until 2021. The OPWP expects solar projects to
contribute at least 30% of their installed peak. Possible locations for new
wind energy projects include Deoper and Dokum.
17. Market Strategy and
Structure of Competition - Iceland
1. Iceland is the world's
largest producer of energy per capita and the largest electricity producer per capita, with about
55,000 kWh per person per year. By comparison, the EU average is less than
6,000 kWh.
2. A license granted by the
National Energy Authority is
required to build and operate an electric power plant. The National Energy
Authority is responsible for monitoring and regulating the compliance of
companies operating under issued licenses.
3. The government outlined a plan that examines the economic feasibility and
environmental impact of each project before it is approved.
18. Market Strategy and
Structure of Competition - Germany
1. Sophisticated energy market - starting in 1997, Germany's electricity market
has officially opened to competition, following EU regulations.
2. Market structure: In Germany, there is a separation
between electricity transmission and electricity supply for homes, which helps
develop the renewable energy market.
3. Legislative reforms have funded energy sources and created competitiveness
and competitive prices. In 1990, Germany passed a law to pay for the supply of
electricity to the electricity grid from small producers who are also
consumers. This is a transition from a centralized energy network - to the
Internet of energy, a decentralized power grid in which anyone can be a
consumer and a manufacturer. Germany encourages the production of renewable
energy not only through business players but through as many citizens as
possible. It pledges to buy green electricity in long-term contracts at prices
that guarantee a return on investment, in addition to a series of legislative
actions and massive investments in the development of green technologies and
the development of industry concerning renewable energy.
4. Energy production: The renewable energy market is developing rapidly. In
2020, the total renewable energy supply was 42.2 Toe and 227 Twh, which is
14.1% of total initial energy supply (TPES) and 35.3% of the total electricity
generation from renewable sources.
5. Renewable electricity generation, 70% of renewable electricity production is
in private hands; manufacturers are farmers, communities, and cooperatives;
only 6.7% of the renewable energy market is in the hands of the big four
companies.
6. Strategy:
The goal of the German Energy Agency's (Energiewende)
program, is streamlining the German energy system, whose sources are mainly
supplied from renewable energy, without nuclear power generation (17 stations),
by 2022, and without the use of coal, which is the main source of energy, by
2038.
7. Taxation: German
households pay $353 per megawatt for
electricity, the third-highest rate among IAAF countries. Taxation accounts for
48% of the electricity price, and heavy industries pay less than households.
8. Goals: Germany sets
ambitious goals for reducing energy
consumption, including streamlining production and transmission by 50%, cutting
CO2 emissions by 80%, and increasing the share of renewable energy to 60% of
total energy consumption by 2050, which is conditional on the capacity of the
electricity grid infrastructure.
19. Market Strategy and
Structure of Competition – Portugal
1. In 2019, external energetic sources dependence was 74%.
2. In November 2020, electricity and gas social tariffs were amended to
cover all unemployment situations.
20. Market Strategy and
Structure of Competition - Austria
1. Strategy - encouraging individuals, and companies in the private and public
sectors to develop means of creating renewable energy, state programs, and
state goals.
2. In 2016, renewable energy accounted for 33.5% of the country's total energy
production.
3. Encouraging the production
of solar and renewable energy in local
households.
21. Market Competition
Strategy and Structure - Norway
1. From a poor country
compared to its neighbors, Norway in
the 1960s slowly became an oil and gas powerhouse, with the discovery of oil
and gas in the sea, north of the country. The largest oil field was discovered
in 1969 at the time of the eruption of the energy crisis following the Arab
embargo in the 1970s, and today 20% of Europe's oil and gas is supplied by
Norway.
2. Norway is a very rich country, the energy market depends on the oil and gas
deposits, Norway knows it needs to be ready for the day after the exhaustion of
the reserves, it is a competitive and capable country that supplies electricity
to Europe.
3. Norway has the lowest carbon emissions in Europe.
4. Norway has 1,681 water
powerplants, which in 2020 provided
88% of the electricity supply.
5. Norway has energy stockpiling technology, so it doesn't depend on
climate change.
6. In the second half of
2020, Norway exported 14 TWh of
electricity, making it the largest electricity exporter in Europe.
7. Norway has developed a prototype turbine, which served as the base for the
Hywind wind powerplant off the coast of Scotland, the first to go into
commercial production. construction of the 88-megawatt Hwind Tampen
project began in October and is designed to provide 35% of the annual power
needs of five platforms in the Gullfaks oil and gas fields. Norway's coastline
is known for its stunning deep waters and fjords, but there are also possibilities
for conventional wind energy utilization by building wind turbines.
22. Characteristics of the place and area of the industry: Sudan
1. North Sudan is Africa's third-largest country, the country is
relatively young and has suffered for many years from internal tensions and
brotherly war.
2. The country is rich in
minerals where biodegradable and
renewable energy can be produced, as well as solar and wind potential.
3. For the benefit of solar energy– the state is in the equatorial area, thus having
many sunny days a year, and a very high level of radiation most of the year.
4. In Sudan, there is a high potential for waterpower to be used to produce
much energy. The country designates this source for creating power grids in
areas where the state grid does not reach.
5. Wind energy is highly served in the sea and mountains, and wind
energy is favored for development, both to provide electricity to remote regions,
and as an engine to stimulate the country's entire renewable energy industry.
6. Regarding natural gas, there are very large deposits of gas, but the state
doesn't know how to take advantage of it. Most of it is wasted during the
process of mining fuels.
23. Characteristics of the Place and Area of the Industry: Oman
1. The maximum demand for the OETC transmission system is usually on summer
weekdays.
2. Demand typically peaks in May to July, with the highest day temperatures
and the most intense use of air conditioning units.
Seasonal demand is expected to decline with new large industrial loads coming
to the grid.
24. Characteristics of the place and area of the industry: Iceland
1. Natural hydrothermal
resources have made Iceland the
world's largest green energy producer per capita.
2. Currently, hydrothermal
resources supply almost 100% of
Iceland's electricity consumption and about 85% of total initial energy
consumption. Of all initial energy consumption, about 20% comes from waterpower
and 65% from geothermal sources. This is the highest share in the world of
renewable energy in any total national energy budget.
3. The untapped economic
potential for waterpower and
geothermal power will continue to be Iceland's main source of growth. The total
ability to generate the potential of Icelandic hydro-geothermal resources is
estimated at 50TWh a year.
4. Iceland has yet to realize its potential energy of wind, which could be
important to the economy in the future.
5. The green-fuel sector is small but growing. It produces bio-methane and
green methanol, but for the most part, Iceland still imports almost all the
fuel needed for vehicles, shipments, and planes, which may change as the
international oil and gas industry is now taking the first steps in the search
for hydrocarbons on the Icelandic continental shelf.
25. Characteristics of the place and area of the industry: Germany
1. Total electricity generation in Germany is 644 Twh, a total energy source
segment is: 37% coal, 12% nuclear, 13% natural gas, 1% oil, 17% wind, 9% bioenergy,
7% solar, 3% hydro, 0.5% geothermal.
2. Wind source: Germany has more than enough renewable energy, but this
is scattered over a wide area, and not concentrated in one place, most of the
electricity from a wind source is produced in northern Germany and most of the
demand for consumption is in cities and industrial centers in the south and
west of the country.
3. About
1.6 million solar farms with a total capacity of 43GWp
have been installed in the last 27 years in Germany.
4. The energy efficiency boom has created nearly a million jobs in Germany in the
past 20 years, exporting the knowledge they have acquired and the products they
have developed to meet energy efficiency standards such as developing systems
for monitoring the loss of compressed air, and adaptations to existing electric
motors.
26. Characteristics of the place and area of the industry– Portugal
1. Climate impacts pose a threat to waterpower generation in Portugal.
2. There is no domestic
production of oil, coal, or natural
gas. 100% of the fuels supply is imported.
3. The main program supporting industrial energy efficiency is SGCIE, which requires
energy audits and strategies to reduce energy requirements from high-energy
facilities.
4. 70% of the
country's total electricity is generated from more renewable and environmentally friendly energy,
and in recent years the state has managed to reduce the use of coal by 29%.
5. The National Hydrogen Strategy (EN-H2) sets a target for
hydrogen derived from renewable energy to cover 1.5-2.0% of Portugal's energy
consumption by 2030, with industrial use, maritime and land transporting, and
injecting into the natural gas grid.
27. Characteristics of the place and area of the industry: Austria
1. Austria also has the
option of using hydro and water
sources, solar energy, and power plants.
28. Characteristics of the place and area of the industry: Norway
1. Norway is the largest exporter of Solomon fish to the world, probably because it
relies on the oil industry, Norway has not developed in other areas besides fish,
oil, and wood products.
29. Government's Influence on
Industry: Sudan
1. With the decision to
develop the renewable energy market,
responsibility was transferred to the Ministry of Water, Irrigation, and
Electricity, which have historically been responsible by the Ministry of
Agriculture and Forests.
2. The state enacted two basic energy laws that encourage investment and
cooperation.
3. The state adopted a policy
decision to support and subsidize
the industry when it comes to developing new energy sources, an emphasis on
solar energy for agricultural purposes.
4. The state implemented a five-year plan for reducing poverty in 2015-2019 by
making energy accessible to the population.
5. The updated energy
development plan until 2031 is mainly
about narrowing the gap between demand and supply in the country, and with an
emphasis on coal-based power plants alongside the maintenance of hydraulic
power plants.
6. The state provides large subsidies and grants to companies
interested in developing the energy market, and in the meantime, the price of
electricity in the country is very low, and the state burdens itself with many
costs, which create concerns for overseas investors to produce capital-intensive
projects that will not return themselves with a reasonable marker.
7. In addition, the state has formulated a roadmap for
achieving three national energy targets, from which 69 direct actions are
derived.
30. Government's Effects on
Industry: Oman
1. The sultanate is looking
to manage its energy transition and
inject capital into its fiscal balance sheet. privatization, sector
restructuring, and renewable energy are key issues on Oman's services sector
agenda. Reducing reliance on natural gas is a priority, with several
large-scale solar-power projects, helping the country achieve its goal of 30%
renewable energy on the grid, by 2030.
2. Due to the government's
desire to expand reforms in the
electricity market, Oman is expected to allow open access to its transmission
network and generators.
Such developments may support the country's ongoing efforts to develop a
well-functioning regional electricity market. Moreover, when peak electricity
demand in Oman usually occurs in May and June, while peak demand in most
neighboring countries in July and August, Oman will have an opportunity to
trade electricity in the GCC region.
31. Government impacts on the industry:
Iceland
1. Iceland is a member of the European Economic Area (EEA). Under Icelandic law
and regulations, businesses and industries are generally open to foreign
investment.
2. As an example, a Canadian company recently acquired a large stake in one of
Iceland's largest energy companies through a legal entity owned by a Canadian
company in Sweden.
In addition, the Icelandic Trade Minister has the right to grant legal entities
(except those mentioned above) a license to operate in Iceland. This includes
approval for investment in the energy sector. Canadian electricity investor
Alter Power and Chinese chemicals company National Bluestar also own large
business units in Iceland through their Scandinavian subsidiaries.
3. So far, most of these
investments have been in high-power
industrial production, particularly in focus on metals. however, there is a
growing investment in medium-sized industries with foreign companies investing
in data centers and dynamic tech companies.
The reasons behind such foreign investment can vary. The low cost of
electricity is the most important factor for high-energy industries such as
aluminum sprinkling. Skilled labor and highly qualified technical people in
Iceland's educated society are also important factors. Moreover, Iceland has a
modern and efficient infrastructure, and the Icelandic corporate tax rate of
20% is one of the lowest in the OECD. Some local authorities have flexible
development strategies, and incentive programs, which can be an advantage for
new investors. Government ministries in Iceland are usually very accessible,
allowing businesses and individuals to deal with them directly.
Examples of well-known international companies with a strong presence in
Iceland are aluminum producers Acoa, Century Aluminum, and Rio Tinto Alcan, and
Chinese chemicals company China National Bluestar (owner of Norwegianprosilicon
makerElkem). Below is a brief description of some foreign investors using
Icelandic energy.
4. Potential investors from outside the EU or EEA should get
special permission from Icelandic authorities, which, for example, applies to a
Canadian company that purchased shares in an Icelandic electricity company
through a company registered in Sweden.
There are, of course, a few law firms in Iceland that specialize in helping
foreign investors with legal matters, company establishment, and contractual
formality.
5. Icelandic Parliament adopted a general law on incentives for an initial
investment in Iceland (Law No. 99/2010) This new legislation has been approved
by the EFTA Supervision Authority (ESA) as a legitimate state assistance
program (this is important because of Iceland's membership in the EEA Economic Area).
Government authorities are entitled to give general and regional incentives for
new investments in Iceland up to a set ceiling, In addition to certain tax and
billing violations, incentives can also come in the form of direct cash grants,
training assistance, and land leasing.
As a member of the European Economic Area (EEA), Iceland has access to EU research funds for
research and development programs and joint ventures with companies from at
least one country (including all countries within Europe).
32. Government Impacts on
Industry: Germany
1. The main policy focuses on the deployment of renewable energy measures
and includes specific support policies for electricity, heating, and
transportation, as well as policies that support energy efficiency mainly in
the construction sector and more generally on climate change.
2. Investment in
infrastructure – The expectation is
for a steady increase in the state's need to invest in offshore wind stations,
photovoltaic energy, the expansion of networks and energy storage projects, and
the implementation of a smart new energy infrastructure that will be able to
balance the changing supply of renewable natural resources.
3. Germany added only 178
wind turbines with a capacity of 591
megawatts in the first half of 2020. The government decided that wind power
should increase by about 1.7gigawatts annually to help Germany reach the green
power target of 65% by 2030.
4. Research and development – Germany invests heavily in the development and
research of new technologies. Total expenditure on R&D is $1 billion a
year, which is 0.03% of its GDP. The state should now focus on developing
energy storage measures and finding suitable storage solutions that will reduce
the dynamics that characterize the production of renewable energy and ensure a
regular supply of electricity over time.
5. Emissions targets: The government has identified a need for reform in the
areas of transportation and heating buildings to meet emissions targets.
6. Upgrading buildings: The German government is currently encouraging the
upgrade of private buildings through green certificates and easing the renter
law. By 2017, approximately 80,000 households and commercial companies have
already invested in photovoltaic systems. Even the reinstallation of storage
facilities is expected to be a major growth engine in improving energy
dependence on private households and commercial companies. Only 3.7% of the
solar panels installed on rooftops in Germany are currently equipped with a
battery – a rate that by 2030 can reach over 80%.
7. Transport upgrade: The German government has decided to require the country's
gas stations to provide charging for electric cars, and the government will
invest $2.8 billion in developing electric battery production infrastructure
and charging infrastructure.
33. Government impacts on the industry:
Portugal
1. The government aimed at reducing the use of coal. Natural gas for electricity
generation will last until at least 2040.
2. The Green TaxAct, passed in 2014, to better regulate the taxation of the
energy sector with carbon targets - a key aspect of energy and climate policy.
3. The government has
developed a national strategy for
bicycles and active mobility to provide financial incentives for the purchase
of electric bicycles (including bicycle chargers).
4. Portugal was
among the first countries in the world to set a carbon neutrality target in 2050, mainly through widespread
electrification of energy demand and rapid expansion of renewable electricity
generation, along with increased energy efficiency.
5. The government is also
working at the international level
to increase power connections with Spain and the rest of Europe, which will
help increase the security of the electricity supply.
6. Funding for support comes from the state budget and some national funds
focused on energy and climate priorities.
34. Government's Effects on
Industry: Austria
1. Many companies decide to invest and adopt new directions in favor of
switching to renewable energy.
2. The state Invests to
create a change in leading
infrastructures to adapt the industry to them.
3. One of the most prominent
renewable energy laws is called the
Green Electricity Act, which regulates the promotion of the transition to green
energy against multiple suppliers that promote renewable energy and receive a
reward through any customer who uses the service.
35. Government impacts on the
industry: Norway
1. In recent years, the
government has begun taking steps to ensure the country's future, as its fuel and gas inventories are dwindling.
2. The government has plans for the electric vehicle sector. Starting next year,
every vehicle purchased will be electric.
3. In the field of wind and waves, Norway has a five-year plan and a decade.
4. Norway is starting a
process of increasing the use of
renewable energy, entering energy storage technology, and developing the use of
hydrogen by electrolysis or other technologies.
5. Oil and gas exports
produce jobs, and the country
needs to create replacement jobs for its citizens.
6. To care for its citizens, Norway has built a safety net from taxes and
dividends.
36. Wide effects affecting
competitiveness: Sudan
1. The country is in the very
early stages of developing the
energy market. Therefore, the starting point of the players in the energy
industry is similar, which creates great competitiveness.
2. There is a great deal of
involvement by international entities
and large investment bodies to help the state develop the energy market.
37. Wide effects affecting
competitiveness: Oman
1. In Oman, the
regulatory structure of energy production entities is structured from the supervisory entities,
the main ones being the Electricity
Regulation Authority (AER), which is the independent regulator of the electricity segment.
The Ministry of Oil and Gas (MOG), which is the policymaker of the electricity segment, and the
Public Water Authority (PAW), which is the regulator, water policymaker, and water
distribution company.
2. In October
2018, the sector began a restructuring process following recommendations from an energy
laboratory organized by the National Economic Diversity Improvement Program,
known as Tanpa.
(The AER) will remain as it is, given that Oman believes in the independence of
regulators when the water regulation may also be transferred to the AER and becomes an
authority for the regulation of electricity and water. The rebuilding movement
is intended to streamline the government, as there has been an oversupply of
public authorities with interests in the sector.
38. Wide effects affecting
competitiveness: Iceland
1. Electricity prices in Europe and around the world will
continue to rise, the Icelandic energy industry will continue to be even more
competitive than it already is; it seems that this development is already
underway and can be expected to gradually increase both profits in the
Icelandic energy sector and be a strong incentive for further investment in the
industry.
2. It is important to
remember that although Iceland has
the potential to significantly increase renewable energy production, hydro-geothermal
power sources are limited, so early investors will have the best choice in
Iceland's low-priced green energy potential.
3. The Icelandic TSO (Landsnet) has a few large development
projects already in the planning or planned stages for the coming years. The
projects are designed to meet the customer's needs and ensure that the network
has sufficient capacity to meet the minimum requirements, considering the cost
efficiency and economic principles set out in Icelandic law.
The network plan describes all the development projects of the transmission
system, whether at the proposal, planning, or construction stage. It also maps
all major projects in development stages based on memorandums of understanding
or the potential future development of a power trade market, even in the
absence of a specific time requirement to strengthen the network.
4. Compared to other countries, whether in the EEA, EU, or OECD, electricity
prices in Iceland are very low. This applies to both industries and households.
Due to the increase in electricity prices in Europe, the price gap is
increasing, making Icelandic electricity even more competitive than before.
This development allows Iceland and Europe to be connected via an underwater
cable. This option is currently being examined by the Icelandic National
Electricity Company (Landsvirkjun) and TSO Icelandic (Landsnet).
5. In some cases, this creates opportunities to simplify the current
transmission network and stop the use of elevation lines along mountain roads
where the weather conditions are severe.
39. Wide effects affecting
competitiveness: Germany
1. Energy security: Germany has multiple oil supply
sources, supply infrastructure, and emergency repositories that provide it with security. It also has confidence in
the supply of natural gas from Russia. The transition from producing energy
from coal and nuclear will require a lot of gas supplies in their place.
40. Wide effects affecting
competitiveness: Portugal
1. All services sector and public buildings must be audited to obtain an
energy certificate.
2. Multi-local regulation is the adoption of European regulation that on the one
hand limits the use of renewable energy in the country and on the other
encourages innovation and development of renewable energy sources.
41. Wide effects affecting
competitiveness: Austria
1. Entrepreneurs and private companies encouraged by the government in all sectors
and all areas place Austria with a competitive advantage over most ECD
countries and outside it.
42. Wide effects affecting
competitiveness: Norway
1. Norway is characterized by excess electricity generation and probably also imports nuclear energy.
Ranking the competitiveness of the countries according to the criteria of the "Diamond Model" (Porter)
|
|
strategy |
demand |
Ecosystem |
Place and area |
Government involvement |
Wide effects |
Weighted score |
|
Sudan |
5 |
7 |
5 |
1 |
4 |
3 |
25 |
|
Oman |
6 |
3 |
4 |
6 |
6 |
6 |
31 |
|
Iceland |
4 |
1 |
1 |
2 |
3 |
2 |
13 |
|
Germany |
2 |
2 |
2 |
3 |
1 |
4 |
14 |
|
Portugal |
7 |
5 |
6 |
5 |
2 |
1 |
26 |
|
Austria |
3 |
6 |
7 |
4 |
7 |
5 |
32 |
|
Norway |
1 |
4 |
3 |
7 |
5 |
7 |
27 |
In the country's strategy
and competition structure criterion,
we found that Norway is the most competitive country.
In the criteria for place and area attributes, we found that
Sudan is the most competitive country.
In the criteria of government's influence over the competition,
we found that Germany is the most competitive country.
In the criterion of wide effects and phenomena that affect the
competitiveness of the country, we found that Portugal is the most competitive.
Competitive ranking relative to the compared countries
|
country |
Competitive rating |
|
Iceland |
1 |
|
Germany |
2 |
|
Sudan |
3 |
|
Portugal |
4 |
|
norway |
5 |
|
Oman |
6 |
|
Austria |
7 |
By simply weighing all the
criteria (without any special
weight for any criterion), we found that Iceland leads at its level of
competitiveness relative to the other compared countries. that is, Iceland has
the best conditions that allow it to conduct itself competitively and even
profitably (currently), against the other countries of comparison.
Major threats facing the comparison countries
1. Knowledge gaps: We
identified a wide spectrum of knowledge
gaps across the entire value chain of mining, extraction, and energy transmission.
The spectrum refers to each country by its position on the chain.
2. With the lack of full
energy connectivity to all parts of the country, some countries have not yet been able to connect
all residents to a central electricity grid.
3. Sensitivity to climate impacts: Most comparable countries are in areas where
climate change in the world is manifested or at risk of manifestation,
especially in wind power and waterpower the situation is even more sensitive.
Notable opportunities for the renewable energy market in the compared countries
1. In most of the countries, there is energy security for all citizens and
industry, noting that Oman and Sudan are not there yet, but the plans are aimed
at exactly that level.
2. Most countries are rife
with renewable and Consumable
energy sources and reservoirs which greatly enhances the country's potential-supply
curve; it is important to note that Portugal does not provide itself with all
the energy it needs, with an emphasis on Consumable energy, while Germany and
Sudan are heavily dependent on their economy for the exploitation of abundant consumable
energy.
3. A few countries analyzed
in the study, are world leaders
in the areas of information and knowledge on conversion and transmission of
renewable energy. This contrasts with other countries which consider this is a
gap. This may act as a trigger for cooperation between them.
4. We found that a few European countries analyzed in the study are exporters of renewable energy, which greatly enhances their competitive position in the international market.
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