Wind Power International Japan Venture
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Small Wind Turbines Distributorship Venture in Kasai Region of Japan
Transcript of Wind Power International Japan Venture
PRODUCT MARKETING
• The Airdolphin is a micro wind turbine designed for the domestic market and manufactured in Japan by the Zephyr Corporation
• Compact, light, safe, efficient, and quiet with high power generation with a life expectancy of 20-25 years
• The core rotor has three ultra-light carbon fiber blades, embossed to dramatically reduce air flow noise
• The robust body and power generation unit can produce power at up to 50m/s wind speed and a rated capacity of 1kilo watt, and with average wind speeds of 5-6 m/s
• The generator's output equates to around one-third of the typical power usage of a family of four
PRODUCT PERFORMANCE
• Will continuously generate at wind speeds of 2.5m/s through 50m/s
• It has a capacity of over 3kW output at strong winds of 20m/s or more
• When the conditions become too violent, it will switch to stall or soft mode (moderated spinning speed), continuing to work at reduced output up until wind speeds of 50m/s, at which point the turbine will finally stop, or will go back to normal mode once winds have stabled
Power Generator
PRODUCT POWER GENERATING CAPABILITY
PRODUCT SAFETY
• Several technologies help to keep the turbine from disintegrating and allow it to control its output, even during overheating of the power generator, excessive spinning speed, and other negative situations
• Control system has built-in safety control, circuit protection, battery overcharge detection
• During strong winds, Airdolphin's blade slows the rotation, changes the wind-inflow angle, and shifts to stall mode
PRODUCT & TARGET MARKETING
• The RM-1000 Remote Monitor is a multifunctional remote control unit developed exclusively for Zephyr's wind turbines
• With the RM-1000, you can check output power (instantaneous generated output) as well as the total power generation (daily/monthly/total) and the amount of CO2 reduction, with the data being accumulated
• The collected data can be downloaded via the MMC and easily managed on a PC
• The power output can be changed according to Airdolphin's rotations, so for example, you can sync the water flow of a fountain to the speed of the wind turbine, or control lightings -- an ideal feature for live events or environmental educations
PRODUCT INSTALLATION
• The Airdolphin can be mounted in many situations using a variety of standard towers and wall brackets
• Zephyr does not offer wall/roof mounting options on domestic properties and instead provides a variety of tilt towers
• Wall and roof mountings are available for business premises where use is technically feasible
Mounting options
PRODUCT INSTALLATION• Tilt towers are available from 6m to 12m in height and are specially
designed to meet the load requirements of the Airdolphin in high winds and provide a safe and rigid platform for power generation
• The selected tower height will be dependant on several factors including: - Height of surrounding buildings, obstructions, trees, etc. - Planning restrictions - The higher the tower the better the wind speed available - Asthetic alignment with the surroundings
• Simple conversion of existing masts allows the Airdolphin to be mounted on an existing micro-wind turbine mast with a 100mm diameter
PRODUCT OPERATION
http://www.youtube.com/watch?v=mjbg787qQnkhttp://www.youtube.com/watch?v=Mg_2UA-Dxzo
Click on the YouTube links below to see the Airdolphin in action
PRODUCT & TARGET MARKETING
Applications include:• Parks• Streets• Commercial buildings• Private homes• Rooftops• Wind Farms
Typical Electric Usage & Costs• Average retail price of electricity per Kilowatt hours (kWh) for
residential consumers:– Japan $0.22 /kWh– China $0.14/kWh– US $0.12/kWh– Michigan $0.11/kWh• A kilowatt-hour is a unit of energy used by electric companies
for charging their consumers• A 100 watt light bulb uses 0.1 kilowatts of power• Burning the light bulb for 10 hours uses 0.1 kilowatts
multiplied by 10 hours, which equals 1 kilowatt-hour of energy• An average household uses up to 4,800 kW of electricity a day
GEOGRAPHIC ENVIRONMENT
• KANSAI REGION: FUKUI, SHIGA, KYOTO, OSAKA (2nd largest city in Japan), HYOGO, NARA, WAKAYAMA, AND TOKUSHIMA PREFECTURES
• COVERS AN AREA WITH A RADIUS OF APPROX. 95 MILES• OCCUPIES ABOUT 10% OF JAPAN’S LAND AREA• SITUATED AT THE HEART OF THE JAPANESE ARCHIPELAGO,
BETWEEN THE JAPAN SEA AND THE SETO SEA• HOME TO 24 MILLION PEOPLE• MILD WEATHER THROUGHOUT THE YEAR (Good Windage?)• VARIED TOPOGRAPHY RANGING FROM MOUNTAINS TO
PLAINS
ECONOMIC ENVIRONMENT
KANSAI REGION:• GENERATES 20% OF JAPAN’S GDP• COMBINED GROSS REGIONAL PRODUCT OF 904
BILLION USD (FY2004)• $27,000 IN REGIONAL INCOME PER CAPITA• MANUFACTURING INDUSTRY CONSTITUTES ABOUT
20% OF JAPAN’S TOTAL• ACTIVELY ENGAGED IN FOREIGN INVESTMENT
CULTURAL ENVIRONMENT
• 60% OF JAPAN’S NATIONAL TREASURES AND IMPORTANT CULTURAL ASSETS ARE LOCATED IN THIS REGION
• KNOWN AS THE BIRTHPLACE OF JAPAN’S THREE PRINCIPLE CLASSICAL PERFORMING ARTS: NOH, BUNRAKU, AND KABUKI
• HOME OF FIVE DESIGNATED UNESCO’S WORLD CULTURAL HERITAGES
• CHANOYU (TEA CEREMONY) AND IKEBANA (FLOWER ARRANGEMENTS) WERE BORN IN THE KANSAI REGION
SOCIAL ENVIRONMENT
• GENERALLY KNOWN AS “GETTING TO THE HEART OF THINGS”
• KANSAI AND ITS PEOPLE ARE CHARACTERIZED BY PRAGMATISM: REFLECTING THE REGION'S HISTORY AS A MERCHANT CAPITAL
• ACCEPT FOREIGNERS MORE EASILY INTO THEIR MIDST
• AMENITIES TO MAKE LIFE COMFORTABLE AND ENJOYABLE FOR FOREIGNERS, INCLUDING: PLEASANT RESIDENTIAL ENVIRONMENTS, CULTURAL RESOURCES AND EDUCATIONAL INSTITUTIONS
POLITICAL ENVIRONMENT
• GOVERNMENT POLICIES FOSTER INTERNATIONALIZATION
• GOVERNMENT PROGRAMS THAT ENCOURAGE RECYCLING, ENVIRONMENTAL PRESERVATION, & VENTURE-FOSTERING
ENTRY MODE
• Zephyr Corporation Partnership– Sales & distribution agent in Kansai Region
• Small Wind Turbines for Consumer Applications
• Considerations– Location– Type of business/partnership– Social impact/needs
ENTRY MODE
• About Zephyr Corporation:– Established June 11, 1997– 260 Million Yen in Capital– Corporate office in Tokyo– Developers, manufacturers, installers and
maintainers of wind/solar/water power generation equipment
– Sales channels via domestic network of specified agents (about 100, including Wind Power International)
ANALYZING INTERNATIONAL COMPETITORS
• Mitsubishi Heavy Industries• Green Power Investment Corporation• Japan Wind Development Company• Eurus Energy• Hokkaido Green Fund (market direct to consumers)• J-Power EPDC
REGIONAL DISTRIBUTION STRATEGY (Zephyr)
GLOBAL DISTRIBUTION STRATEGY (Zephyr)
Global Regions:• Europe – Spain, Italy, United Kingdom, Sweden, Estonia, Netherlands,
Germany, France, Austria, Portugal, Greece, Turkey• Asia – Japan, China, Mongolia, India, Thailand, Taiwan, Indonesia, Korea• Oceania - New Zealand, Marshall Islands • Africa – Uganda, South Africa• Americas - Canada
GLOBAL PROMOTION STRATEGY
“Ecotricity” is the new catch phrase for generating clean power• Japan External Trade Organization (JETRO)• International Engineering and Technology Fair 2009 - Bangalore, India • Renewable Energy Technology Conference (RETECH) 2009 - Las Vegas • Global Climate Summit 2008 – Los Angeles• INDONESIA JAPAN EXPO 2008 – Jakarta, Indonesia• Pollutec 2008 – Lyon, France• DEWEK 2008 – Bremen, Germany• CanWEA 2008 – Vancouver, Canada• American Wind Energy Association (AWEA)
Airdolphin shown in JETRO booth and
visited by Gov. Schwarzenegger in 2008
Financing sources for Wind energy
• Financing Sources for Wind power industry haveincluded Government incentives and SubsidiesAnd Private Investments through “Green Funds”
• Government Incentives offered by Japan are of two Types: Direct Policies and Indirect Policies
• Direct Policies include - Preference for local Manufacturing- Tax incentives, reduced sales and income tax for domestic
companies- Export Credit assistance in form of low interest loans for local
companies
Financing sources for Wind energy
Indirect Policies include:
- Government Tendering: Competitive auctions for wind projects and sights
- Mandatory Renewable energy targets: Renewable Portfolio Standard (RPS) legislation for utilities to provide 1.35% of electricity from renewable sources
- Quality Certification: Used to standardize wind turbine products and encourage domestic Manufacturers establish stability in the market
- Feed-in tariffs: Prices for wind electricity are fixed over a period of time to establish credibility, provide technical innovation for manufacturers and stability to investors
Financing sources for Wind EnergyPrivate investors:
Citizen Wind Power is a project which has collected funds from ordinary citizens to fund projects throughout Japan. Citizen Wind Power was set up in 2001 and has collected more than $18 million and funded 10 Projects throughout Japan.
The fund operates on the contributions made by ordinarycitizens through the 5% surcharge on the electricity bills, membership dues and donations to the fund. The first project was in Hokkaido and more are planned in Akita and Aomori
SELECTING COMPANY STRUCTURE• Strategic objectives of Wind Power International
- Product Offering:Supply small wind turbine products, Airdolphin manufactured by Zephyr
Corporation of Japan- Target market:
Commercial and ResidentialEducational institutions in Kansai
• Customer Benefits: - Savings on energy costs while combating global warming- Sell energy back to power companies at a profit
SELECTING COMPANY STRUCTURE
Agent of Zephyr• Advantages of being an Agent for Zephyr:
- Facilitate sales based on commission and not financially involved in Zephyr- WPI not responsible for service after sales as agent- No distribution costs for WPI- No credit risk responsibility for WPI
CREATING ANINFORMATION SUPPORT SYSTEM
• Domestic information sources for WPI- Ministry of Economic Trade and Industry, Japan (METI)- New Energy and Industrial Technology Development Organization (NEDO) Japan- Japan Electrical Manufacturers Association- Japanese Wind Energy Association- National Institute of Advanced Industrial Science
• Global information sources for WPI- Global Wind Energy Council (GWEC.net), a global forum for wind energy sector- International Energy Association (Iea.org), an intergovernmental organization which acts as an energy advisor to 28 member countries (Japan has been a member since 1974)
CREATING AN INFORMATION SUPPORT SYSTEM
IDENTIFYING HUMAN RESOURCES
• Staffing- General Manager (local Japanese hire)- Up to 6 Sales Representatives initially
• Training and Development- Cultural awareness- Interpersonal skills- Innovativeness/creativity
IDENTIFYING HUMAN RESOURCES
• Performance Appraisal - Reviewed by General Manager- Annual Review
• Compensation- Commission on Sales Performance- Investment Share in Company
MANAGING INTERNATIONAL FINANCIAL AND BUSINESS RISKS
• Economic and Financial Risks - Japanese economy in recession- Stimulus package inadequate- Aging population
• Social and Cultural Risks- Male dominated society- Japanese are homogenous
MANAGING INTERNATIONAL FINANCIAL AND BUSINESS RISKS
• Political and Legal Risks - Government’s finances are deteriorating- Japan is in political transition
• Risk Management Techniques- Strategic alliances- Employing local individuals
INTERNATIONAL PRICING STRATEGY
• Agent Commission • Wholesale price negotiations with Zephyr
Corporation• Company branding in Kansai region with the
intention to expand partnerships with other corporations
COST/BENEFIT
• Revenue Sources:– Installation Survey ($250 each)– Standard Individual Package ($4500 each)
• Operating Costs (per month)– Office in Osaka…………………….$1800– Salaries• 1 manager $3500• Sales commissions $TBD
– Selling Agreement ($500)
FUTURE PROJECTIONS(Cost/ Benefit Study)
KYOTO PROTOCOL
International Agreement created to address “Global Warming”
Sets binding targets for participating countries and the European Union for reducing Greenhouse Gas (GHC) emissions• Carbon dioxide (CO2)• Methane (CH4)• Nitrous oxide (N2O)• Hydrofluorocarbons (HFCs)• Perfluorocarbons (PCFs)• Sulphur hexafluoride (SF6)
Reduce CO2 Emissions on Average 6% below Participating States’ 1990 levels
Asia Pacific Partnership on Clean Development and Climate (AP6)
International Non-Treaty Agreement• Participants: Australia, Canada, India, Japan, China, South Korea, U.S.• Announced July 28, 2005 at Association of South East Asian Nations
(ASEAN) Regional Forum Meeting• Launched January 12, 2006• Member countries account for more than 50% of the world’s Greenhouse
Gas (GHG) emissions, energy consumption, GDP, and population• Member countries’ set individual goals for GHG emission reductions• No mandatory enforcement mechanism
