MBA Renewables

Diana Maria Ramos Perez

Master's thesis

Strategies to enter and stimulate the Colombian PV market

Professional background

A versatile Chemical Engineer with postgraduate studies in Environmental engineering. A proven track record on climate change mitigation, corporate social responsibility and clean production. Wide experience in the identification and development of greenhouse mitigation projects and Monitoring, Reporting and Verification –MRV- practices of CDM projects and programmes according to UNFCCC’s rules and procedures.

Extensive experience as a consultant as in one of the big four consultancy companies and as a freelancer.

Advice for
future students

"The on-campus time and group assignments are unique opportunities for strengthening a work net with classmates and professors".

Experience with the MBA Renewables

"The MBA renewables put together a diverse background on technical, political, administrative and financial fields. It is a really enriching learning experience. The partnership between Beuth Hochschule für Technik Berlin and RENAC is a perfect match that joints theoretical and practical knowledge".


Abstract of the thesis:
In Colombia there is a special name for renewable energies. Since more than 60% of national installed power capacity is from hydropower, a renewable source, the other renewable sources (PV, wind, geothermic, biomass and ocean) and small hydro plants are called Non-Conventional Renewable Energy Sources, NCRES. The NCRES in Colombia have been historically lagging behind national energy supply alternatives. Only until May 2014 it was approved Law 1715, which introduces concrete incentives for a broader use of NCRES. One of the Niches of Opportunity for NCRES identified by the national government is photovoltaic (PV) systems. This master’s thesis has analysed key macro-environmental factors of the PV Colombian market by a PESTLE (political, economic, social, technological, legal and environmental) analysis. Overall, the macro-factors identified in the analysis enable to see the potential of Colombian photovoltaic market, its strengths and opportunities. However, there are also threats and weaknesses, which were identified in a SWOT analysis developed in this study after the PESTEL analysis. Both analysis (PESTLE and SWOT) were useful to identify recommendations for strengthening the PV market and expanding its volume, and to access potential niche opportunities in this market. The first type of recommendations is addressed to local market participants and the second one, to national and international participants who want to explore or expand business opportunities in the Colombian PV market.
 
It is concluded from the market analysis and other information gathered in this study, that the Colombian PV market is very close to a turning point where this technology will start to be more attractive to a greater number of scenarios. Currently, this technology is profitable only in non-interconnected areas where photovoltaic energy replaces fossil sources in autonomous systems. Nevertheless, a greater number of small-scale facilities for commercial and industrial users in urban areas that are interested in using PV systems is observed. Consequently, new scenarios will be attractive as soon the National Government completes the formulation of law 1715 regulation.

The general recommendation is that this is a good time for companies in the PV technology supply chain to approach the Colombian market for learning about their context and gaining local experience. The study identified some business opportunities in the current context to approach the Colombian market. Additionally, when the National Government finishes regulating the incentives developed for the NCRES, the economic viability of PV systems in diverse scenarios will be confirmed and it would set the rules that PV projects would need to handle.