IBUS2301 Report: Analyzing Innovation & Opportunities for Noja Power

This report, prepared for IBUS2301, examines the innovation and growth opportunities for Noja Power, a switchgear manufacturer. The report focuses on the company's potential in the renewable energy sector, particularly in the context of the global shift towards electric vehicles and sustainable energy sources. It proposes that Noja Power should develop eco-friendly products using renewable energy sources to capitalize on this trend, highlighting the increasing demand and awareness of renewable energy in developed and developing countries. The report suggests that Noja Power can expand its market by providing solutions for electric vehicle charging stations and entering new markets, especially in countries like India, where the government is actively promoting electric vehicles. The report emphasizes the importance of research and development, joint ventures, and strategic partnerships to facilitate market entry and minimize investment. It includes figures and references to support its analysis and offers a structured approach to presenting its findings, including an executive summary, problem analysis, proposed solutions, and a conclusion. The report suggests that by focusing on renewable energy and electric vehicles, Noja Power can address its challenges and seize new market opportunities.

INNOVATION/ OPPORTUNITY
Noja Power is a company established in 2002 that manufactures switchgear of high voltages
and provides them across the world. The company has presence in 88 countries. Noja Power
provides automatic circuit reclosers that are used in distribution lines. Today, most of the
countries are trying to reduce carbon emissions through use of renewable energy source.
Therefore, innovation of products that use renewable energy source and available to direct
customers along with entering new markets is a major challenge and opportunity for Noja
Power.
PROPOSED SOLUTION FOR OPPORTUNITIES
In order to reduce carbon emissions, Noja Power needs to develop products that are eco-
friendly. This means that the company should focus on products that use renewable source of
energy in order to grow. This is an opportunity as not many companies are present in this
sector.
There has been high level of awareness among countries about taking measures for climate
change. In developed countries, there is high awareness and usage of renewable energy. An
example of this is European Union were approx. 35% electricity is developed though renewable
source that includes hydroelectric too.
As per report on renewable energy by global data; the renewable energy share was 8.6% in
2010. However, it is expected that this will increase to 22.5% in year 2020 (Data, 2018). This
means more demand of renewable energy and more awareness about it. The new generation is
likely to focus on such energy source and choose products that has less carbon emission.

Figure 1: Renewable power-generating source globally (%), 2010, 2017, 2020
Source: https://www.power-technology.com/comment/renewable-energy-reach-22-5-share-
global-power-mix-2020/
In addition, countries in almost all parts of world have started focusing on renewable energy.
Asian countries like China and India have shifted their focus on renewable energy developed
though solar and wind. Considering Latin America, there is a rapid growth in use of renewable
energy thereby reducing carbon emission. In countries like Brazil, Mexico and Argentina; solar
and wind energy is used for then fossil fuels.
Another way for Noja Power to grow is to install electric sources that use renewable energy for
charging electric cars. It is believed that high number of people will shift to electric vehicles.
There are many countries that are planning to introduce different promotion activities to

encourage use of electric vehicles and reduce carbon emissions. However, if the batteries are
recharged using fossil fuel, the impact of using electric vehicles will be almost nil. Therefore,
Noja Power can enter this market and provide products that can help in renewable power
generation and its supply.
Figure 2: Forecast for sales of vehicles globally
Source: https://www.jpmorgan.com/global/research/electric-vehicles

As per report by JP Morgan, the global sales of electric vehicles and hybrid electric vehicles in
2016 was 1% of total world sales which is under 1 million vehicles. It is expected that the
demand for such vehicles will increase by 30%; that is the market share will be 30% by 2025
(MORGAN, 2018). This means more power stations will be required.
Considering the adaption of electric vehicles by countries, in 2018; total electric cars used
globally were 5.1 million; an increase of 2 million over 2017. Among all the countries, China is
the largest car market for electric cars. In addition to cars, the number of electric two wheelers
and other electric vehicles are also expected to increase resulting into heightened demand for
electric power stations (IEA, 2019).
This also opens door for Noja Power to enter into new markets. Since developing countries are
also focused on using renewable energy; they serve as a good market for Noja Power to grow.
Indian government is highly focused on use of electric cars. The country has a goal to have 30%
electric cars by 2030. The government has also proposed to have only electric two wheelers by
2025 and electric three wheelers by 2023 (News, 2019). This serves as a great market for Noja
Power as it has already signed such a project with Australian Government. Australian
renewable energy agency and Noja Power are already working on the project with aim to
develop an intelligent switch gear aimed at reducing the cost and complexity associated with
connection of renewables (Government, 2017).
Noja Power can enter such developing markets by having a joint venture with already existing
companies. This will shift major focus of Noja Power on research and development and will
require less investment. This way, Noja Power can enter multiple countries.

Thus, by converting these challenges into opportunites; Noja Power can focus on providing
renewable energy for electric vehicle stations. In addition, it can enter new markets with
research and development motive, less investment and joint ventures.
References
Data, G. (2018). Renewable Energy - Thematic Research. Globaldata. Retrieved from
https://www.globaldata.com/store/report/gdpe-tr-s007--renewable-energy-thematic-
research/
Government, A. (2017). NOJA Power Intelligent Switchgear. ARENA. Retrieved from
https://arena.gov.au/projects/noja-power-intelligent-switchgear/
IEA. (2019). Global EV Outlook 2019. Paris: IEA. Retrieved from
https://www.iea.org/publications/reports/globalevoutlook2019/
MORGAN, J. (2018). Driving into 2025: The Future of Electric Vehicles. JP Morgan. Retrieved
from https://www.jpmorgan.com/global/research/electric-vehicles
News, B. (2019, 7 24). India turns to electric vehicles to beat pollution. BBC News.