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Company description
• Technology company specializing in utility-scale solar power plants
• Privately Owned• Created by United Technologies and
US Renewables Group in 2008• Owns exclusive worldwide license to
technology
Technology Description
Technology already proven Solar Thermal Electric
Generation (STEG) technology Heliostats concentrate heat on
central tower Heat is stored in molten salt
which generates electricity Key Advantage: molten salt
can be stored to generate heat at all hours
Plant capacity of 500-600MW STEG technology is market-
ready
Technology Description
Business opportunity
Climate is ideal for solar power
Government mandate requires 5% of state power output to come from solar by 2020 Current output is 0.1%
Opportunity to penetrate initial market, establish a lead user
Other states will pursue similar renewable goals
1 1.5 2 2.5 3 3.5 4 4.5 5
1
1.5
2
2.5
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3.5
4
4.5
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Lobbying
Gov Mkt Opp
Advantage-Importance Matrix
Relative Importance
Rel
ativ
e A
dvan
tage
Within Nevada:
Business Opportunity
Other states have favorable climates
Some states also following Renewable Portfolio Standards CA, AZ, West Texas
Promising opportunities abroad Spain, Australia, North
Africa
Beyond Nevada:
Possible challenges
Renewable energy market will be highly contested Photovoltaics Other forms of concentrated solar
High up-front plant cost $600-$700 million for 200MW plant
Will solar generated electricity be affordable?
Uncertainty if public will want, or pay for solar energy
Possible doubt from utility companies
Company strategy
Goal: build 200+MW molten salt power plant in Nevada by 2015
Launch PR campaign targeting residents of Nevada Town Hall Meetings Grassroots support Television Ads
Lobby state government officials Establish ties with regional utility company
executives
Near Term:
Company strategy
Look to enter other states in Southwestern US Lobby state and national government officials
Carbon Tax or Cap-and-Trade Improved grid system
Increase R&D to drive down plant cost, increase output capacity
Partner with foreign companies and look to enter markets abroad Spain North Africa
Long Term:
Financial analysis
Market Share 2% nationally, 31%
in Nevada Revenue
$600 million-$700 million +
Cash Flow $102 million
NPV $150 million
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
($200,000,000)
($150,000,000)
($100,000,000)
($50,000,000)
$0
$50,000,000
$100,000,000
$150,000,000
Annual Net Cash Flow
Year
Net
Cas
h Fl
ow
Conclusion
SolarReserve’s options are only going to improve
STEG technology has considerable advantage over other renewables and coal
Establish lead user in Nevada through marketing, PR, and lobbying
Expand to other state markets and abroad Lobby federal government for Carbon Tax
Works cited
Acciona. “Nevada Solar One: Project Overview.” Nevada Solar One. http://www.acciona-na.com/About-Us/Our-Projects/U-S-/Nevada-Solar-One.aspx
Hoglund, Bruce. “What is Molten Salt & Its Technology?” Bruce Hoglund’s Eclectic Home Page. http://home.earthlink.net/~bhoglund/whatsMoltenSal.html
Pae, Peter. 2009. A solar plant that’s worth its salt. Los Angeles Times, May 29, sec. A.
Solar Electric Power Association. “Solar Companies Home.” Solar Electric Power Association. http://www.solarelectricpower.org/
Solar Reserve. “Technology.” Solar Reserve. http://www.solar-reserve.com/technology.html
Sullivan, Sean. 2009. “World’s Largest Commercial Solar Power Tower Goes Online.” Clean Technica, April 29th. http://cleantechnica.com/2009/04/29/tower-of-power/
