case Review new energy company propositions - jbr-consultancy.com

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Review new propositions energy company

Mission

Develop a method by which the propositions can be compared in terms of financial potential. Also challenge the proposition in terms of content and test the market potential based on knowledge and experience gained through JBR in the market and through thorough desk research.

Background

Our client is the business development department of the company. This department aims to bring new propositions for sustainable energy and other energy services on the market. Ideas for new products, services and concepts are submitted from both inside and outside the company. The business plans submitted for each proposition do not contain a fixed method for calculating the financial added value of the proposition. Also, the customer has question marks about the estimated market potential. The result is that the propositions cannot be objectively compared with each other so that management does not know which propositions qualify and which do not.

Problem statement

A Dutch energy company looking to review new propositions for renewable energy.

Our contribution

A number of propositions have been reviewed whereby for each proposition a financial model has been developed that calculates the potential EBIT per proposition in the same way so that the four propositions can be compared financially. In addition to the EBIT calculation a thorough risk and sensitivity analysis was performed. Also, per proposition insight is given into the total market potential, the 'reachable market' for our customer and the associated revenue and EBIT potential. The model is transferred to the customer, so that in the future the financial analysis can be made by the customer. The propositions were substantively challenged on the basis of knowledge, experience and desk research. The analyzed propositions concern products and services in the field of renewable energy.

The result

An extensive financial and market analysis per proposition was delivered, on the basis of which the Board of Directors was able to decide which propositions will be introduced and which will not. In addition, JBR has developed a model for the customer that can now be used by the customer itself to do the financial analysis in the future.