Difference between revisions of "Local Production: Conditions and Success Factors"
From energypedia
***** (***** | *****) m |
***** (***** | *****) m |
||
| Line 1: | Line 1: | ||
| − | |||
= Overview = | = Overview = | ||
| − | |||
In contrast to [[Import of Energy Products|imports]], local manufacturing of energy products can constitute a reasonable cost-efficient alternative that supports local value creation. | In contrast to [[Import of Energy Products|imports]], local manufacturing of energy products can constitute a reasonable cost-efficient alternative that supports local value creation. | ||
<br/> | <br/> | ||
| − | = Key Factors for Successful Local Production / Manufacturing<ref name="Outcome of a discussion during the GTZ mini-hydro power working group meeting in Nairobi, May 2009.">Outcome of a discussion during the GTZ mini-hydro power working group meeting in Nairobi, May 2009.</ref> | + | |
| + | = Successful Local Production / Manufacturing = | ||
| + | <u>Key Factors for Successful Local Production / Manufacturing:</u><ref name="Outcome of a discussion during the GTZ mini-hydro power working group meeting in Nairobi, May 2009.">Outcome of a discussion during the GTZ mini-hydro power working group meeting in Nairobi, May 2009.</ref> | ||
| + | |||
#'''Relevant market:''' The demand of the relevant market should match the minimum size of one production unit. If a specific niche is big enough, the probability of success is higher. In Indonesia the niche was turbines for mini- and micro-hydro power, which has a high national demand and is not the core business of incumbents like Voith Hydro, Ossberger etc. | #'''Relevant market:''' The demand of the relevant market should match the minimum size of one production unit. If a specific niche is big enough, the probability of success is higher. In Indonesia the niche was turbines for mini- and micro-hydro power, which has a high national demand and is not the core business of incumbents like Voith Hydro, Ossberger etc. | ||
| Line 13: | Line 14: | ||
#'''Cluster:''' The production site / firm should be located within an industrial cluster, where it is easier to get qualified suppliers, employees etc. Multi-product firms are in a better position because they can compensate low demand with other product lines and transfer relevant knowledge to new technologies. | #'''Cluster:''' The production site / firm should be located within an industrial cluster, where it is easier to get qualified suppliers, employees etc. Multi-product firms are in a better position because they can compensate low demand with other product lines and transfer relevant knowledge to new technologies. | ||
#'''No grants to the manufacturers.''' Better use (soft) loans or even better create trust for long-term investments like the German Feed-in Law did.<br/> | #'''No grants to the manufacturers.''' Better use (soft) loans or even better create trust for long-term investments like the German Feed-in Law did.<br/> | ||
| − | |||
<br/> | <br/> | ||
| − | |||
| − | = | + | = Further Information = |
*[[Mini / Micro Hydropower Turbine Manufacturing in Indonesia|Example: Mini & micro hydro power turbine manufacturing in Indonesia]] | *[[Mini / Micro Hydropower Turbine Manufacturing in Indonesia|Example: Mini & micro hydro power turbine manufacturing in Indonesia]] | ||
*[[Local Manufacturing of Solar Systems|Example: Local manufacturing of solar systems]] | *[[Local Manufacturing of Solar Systems|Example: Local manufacturing of solar systems]] | ||
*Local Production Systems of Wood Stoves: [[Enhancing Production of Improved Cookstoves (ICS)|Enhancing production of ICS]] | *Local Production Systems of Wood Stoves: [[Enhancing Production of Improved Cookstoves (ICS)|Enhancing production of ICS]] | ||
| − | |||
<br/> | <br/> | ||
| − | |||
= References = | = References = | ||
| − | |||
<references /> | <references /> | ||
[[Category:Production_/_Manufacturing]] | [[Category:Production_/_Manufacturing]] | ||
Revision as of 16:38, 29 December 2014
Overview
In contrast to imports, local manufacturing of energy products can constitute a reasonable cost-efficient alternative that supports local value creation.
Successful Local Production / Manufacturing
Key Factors for Successful Local Production / Manufacturing:[1]
- Relevant market: The demand of the relevant market should match the minimum size of one production unit. If a specific niche is big enough, the probability of success is higher. In Indonesia the niche was turbines for mini- and micro-hydro power, which has a high national demand and is not the core business of incumbents like Voith Hydro, Ossberger etc.
- Time factor: Establishing local production of hydro power components takes time (5-10 years). This is the biggest obstacle for projects which are only funded by EnDev and do not have a longer sectoral mandate like a focal area.
- Cluster: The production site / firm should be located within an industrial cluster, where it is easier to get qualified suppliers, employees etc. Multi-product firms are in a better position because they can compensate low demand with other product lines and transfer relevant knowledge to new technologies.
- No grants to the manufacturers. Better use (soft) loans or even better create trust for long-term investments like the German Feed-in Law did.
Further Information
- Example: Mini & micro hydro power turbine manufacturing in Indonesia
- Example: Local manufacturing of solar systems
- Local Production Systems of Wood Stoves: Enhancing production of ICS
References
- ↑ Outcome of a discussion during the GTZ mini-hydro power working group meeting in Nairobi, May 2009.
