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Amplus Solar - The Sky is the Limit

Medicherla, Kiran,...

Case

Amplus Solar - The Sky is the Limit

Medicherla, Kiran; Agarawal, Shrey; Jamar, Arushi; Garg, Amit

IIMA-PSG0127 | Published March 28, 2018 | 19 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

Solar energy is on a rising trend internationally and in India. The government target of 100 GW solar capacity by 2022 from the present 12 GW is providing a major push for growth in India. However technological development and market competitiveness are pushing down the prices of solar power. The CEO of Amplus Solar has to deal with these challenges to ensure faster growth. He is analysing various options such as expanding the market to include customers who may not be as credit worthy, , expanding to foreign geographies, diversification into providing energy efficiency and other services, and entering other markets such as Renewable Energy Certificates, carbon trading, etc.

1. New and renewable energ businessess such as solar offer good business opportunities. However steep growth cannot be sustained due to technological development and market competitiveness. Competition has also set in quickly in the solar business and firms have to be nimble to remain in business. 2. New dynamics is evolving that creates trade-off and synergies among new businesses such as solar , smart grids, electric vehicles and batteries. Each business vertical has to be aware of these. 3. Energy is the underlying asset here and there are opportunities in related markets such as REC (Renewable energy certificates) and carbon trading. These commodity markets have large variability. However, climate change related policy regulations at global and national levels are driving these.