Solar power as business opportunity for OMV : detailed business models as basis for decision

Abstract

Additionally to future energy options directly related to OMV business units (e.g. Biofuels, Geothermal, Carbon Capture and Storage CCS), OMV Future Energy Fund has identified solar power as a potentially attractive business opportunity for OMV. Apart from defining the business model for solar power, the author analyses the disruptive character of solar power technologies and how large corporations like OMV could deal successfully with such potential disruptive technologies. The analysis of the disruptive potential of solar power, its applications and signs of new business models showed that the disruptive potential of electric drive systems and the emergent solar power business could act disruptive on the existing business models of oil and gas companies like OMV. Therefore the author suggests the entrance in the solar power business. However, the author considers an entrance of OMV into the solar business as a significant challenge for OMV, constituting a disruption for itself on the existing way of doing its business. The author investigates what approach would be necessary to be at the cutting edge of technological change in the fast-moving solar environment. The work outlines how the solar activities should be organized and if and how OMV can identify and adopt disruptive innovations. The overall objective to enter the solar market is the installation of Photovoltaic (PV) Solar Power- and Concentrated Solar Thermal Power (CSP) Plants at superior locations utilising best possible financial support schemes and sale of electricity to local utilities. A business plan for a first approach to enter the solar market was developed, including an emergent strategy approach and a suggestion for the organisation of implementation. The author suggests spinning off an autonomous organization as organizational home to build up OMV's solar business. Continuing on this OMV can develop a vision to become a significant solar player. A venture capital model approach is considered to find the most promising Photovoltaic cell technology venture as cooperation- or acquisition target for OMV. Additionally it should provide a broad network in the photovoltaic and solar industry, giving OMV a clear insight into how the industry is evolving, and what it is going to be capable of.<br />