Renewable Energy Industry: Trends, Opportunities and Risks

This report by Desklib explores the current trends, opportunities and risks in the renewable energy industry, with a focus on the hydroelectric power market. It covers topics such as Ffestiniog Power Station, PESTLE analysis, and the impact of technological innovation. The report also discusses the opportunities and risks in the global market, and predicts future growth and trends in the industry. Course code, name, and college/university are not mentioned.

Strategy and the Global
Competitive Environment

Table of Content
 Introduction
 Main Body
 To access a report on trends in the coffee industry
 Trends offer opportunities or risk in European coffee market
 Conclusion
 References

Introduction
Strategic environment is defined process of evaluating environment implications
of proposed policy, programme and plan that can help to bring changes and
manage performance. This is important for individual to understand what trend
is running in environment.

About renewable energy industry
Renewable Energy market involves
Hydroelectric power which is used by
individual for the purpose of generating
clean electricity, offering recreational
facilities, enabling irrigation for agriculture,
managing flood risk and proper supply of
electricity that can help to bring
improvement in people’s lives.

Scenario
UK is blessed with huge amount of hydro-electric potential and got top rank in
terms of exploitable hydro-potential on global scenario. Ffestiniog Power Station is
the UK’s first hydroelectric pumped storage power company that aims to generate
more units by combining output more than 360MW of electricity that would be
enough to supply the power needs of North Wales in less hours.

Industry details
 Market scope
 Market segment
 Market size
 Key competitors
 Market share

To access a report on current
trends in the renewable
hydroelectric industry
 Technological innovation
 Small hydro
 Hydropower flexibility
 Global warming
 Increasing use of geothermal power

Trends offer opportunities or
risk in global market
 Cancellation of order or projects
 Changes in government regulation
 Increasing investment

Future growth or trend
 By establishing as more power station in UK
the growth of industry would be rise up to
70% that can help to compete with other
economy effectively by saving cost.
 The development of renewable industry is
predicted at higher rate as people will
understand the value of hydroelectric power
and bringing changes in their products as well
as services.

Analysis and Impacts below:
PESTLE Analysis: This is a framework which used by organization to conduct
the external environment analysis and know which factor might be affects the
organizational productivity. The PESTLE analysis for Ffestiniog Power
Station industry has been defined below:
 Political
 Economical
 Social
 Technological
 Legal
 Environmental

Continue..
Factors External factors to consider Factors affected within my industry Importance to organisation
Political Government policy, Political stability,
Tax, Industry regulations, Global trade
agreements and or restrictions are
effective factors that directly affects the
business industry.
Ffestiniog Power Station is first hydro industry
that will be affected negatively Due to changing
global trade agreement while producing the
hydroelectricity because there is need of
government support which is difficult to get.
To regulate its business and
increasing number of customer’s
management of organization
should contract with government of
country and get some subsidiary
that is important to run the business
in changing environment.
Economical Globalisation, Economic growth/ decline
Inflation, Exchange rates, Interest rates,
Labour costs, cost of living, Consumer
spending habits that needs to consider
while running a business in dynamic
around.
In European market and other location spending power of
consumer is good that support Ffestiniog Power Station to
start and complete the project of increasing hydro power.
Moreover, it will help to generate more power at lower cost.
Spending power of people and economic
growth of country is important for chosen
organization as it influence individuals to
use power effectively and it helps to
generate the employment for resident
people.
Social Consumer trends/ tastes, Consumer
buying habits, Fashions, Work-life
balance, Lifestyle factors Career attitudes
Population demographics
This factor affects Ffestiniog Power Station positively as it
helps to meet with changing demand and satisfy them
effectively by generating power in specific region or location
(Borsatto, and Amui, 2019).
This is important as it helps to improve
understanding and consuming power of
individual who lives in European country.

Continue..
Technological Disruptive technologies, Automation
Innovation, Upgrades Robotics, Social
networking, Artificial Intelligence
Security
The companies always bring to new technique that
would help to increase customers and attain
business goals. Automation innovation under
renewable energy such as auto generation power
impacts positively as hydropower plant could be
generated quickly and also help in irrigation.
New technology and innovation is most
valuable for renewable energy industry
as it helps to provide new services to
their customers and provide competitive
advantages in changing environment
effectively.
Legal Common law, Employment law, Local
labour law, Health and safety
regulations are effective factors that
directly affects the business industry.
This factors impacts positively in European market
and other location as Ffestiniog Power Station
follows health & safety law and labour low where it
operates its business such as generating hydropower
that help to managing all functions and activities
effectively.
This is important for chosen segment to
follow regulations in order to providing
products and services. This can help to
build customer trust and maintaining
quality accordingly that supports to
increase productivity.
Environmental Environmental restrictions imposed by
in-country governments Sustainable
resources CSR (Corporate social
responsibility) Ethical sourcing
Transportation Procurement, Future
pandemics
The generation power of renewable industry could
be increased that can help to control flood supply
water properly, and reducing gas emission that can
help to develop a business effectively.
This factor is related to environment where
management analysis surrounding and make
decision to run business.
This factor is important for organization
where it should contribute in CSR
activities, and focuses on transportation
procurement that will help to influence
number of people and increase the
organizational sales.

Continue..
This is a technique used by companies to analysis the competition level in changing
market that can help to formulate the strategy and planning accordingly. Renewable
energy industry use this model to know competition such as:
 Bargaining power of Buyers
 Bargaining power of suppliers
 Competitive rivalry
 Threat of substitutes
 Threat of new entrance

Development of the scenario grid
by using dimension
Customer’s perspective
(Good)
Product/service experience
(Extreme)
Technological invention
(Extremely high)
Region/Country development
(Extremely great )

Conclusion
From the report it can be concluded that to develop the business performance and
country there is need to have effective planning that can help to manage the
functions. The business environment is changing regularly where it is important to
offer products and services accordingly. The company should use new technology
and innovation at their workplace which supports to fill the customer demand and
manage higher productivity.

References
 Dzwigol, H., Dzwigol-Barosz, M. and Kwilinski, A., 2020. Formation of
Global Competitive Enterprise Environment Based on Industry 4.0 Concept.
International Journal of Entrepreneurship, 24(1). pp.1-5.
 Dinçer, H., Yüksel, S. and Çetiner, İ. T., 2019. Strategy selection for
organizational performance of Turkish banking sector with the integrated multi-
dimensional decision-making approach. In Handbook of research on
contemporary approaches in management and organizational strategy (pp. 273-
291). IGI Global.
 Avramenko, D. I., 2020. Development of an internet marketing strategy"
Martin trade" limited liability company in an international competitive
environment.
 Galliers, R. D., 2020. On Confronting Some of the Common Myths of
Information: Systems Strategy Discourse. In Strategic Information
Management (pp. 56-70). Routledge.