MOORE RENEWABLE ENERGY

SUSTAINABLE ECONOMY

PROJECT BUSINESS PLAN

1
 EXECUTIVE SUMMARY
• Moore Renewable Energy (Pty) Ltd intends to develop a solar energy power plant and
associated infrastructure at Moshuka Village, Farm 710 LR, Ramatatane, Limpopo
Province of South Africa.
• The objectives of the project are economic and social in nature.
• It basically aims to:
- Improve the quality of life and alleviate rural poverty in the un-energized and off-grid
areas by providing the four (4) basic needs such as lights, education, entertainment and
communication through affordable and reliable source of energy from solar.
- Promote the use of sustainable, economic and least-cost decentralized electrification
solutions for areas not feasible for grid connection/extension in partnership with the
local government units, semi-private and private sectors.
- Increase productivity, promote livelihood and social interaction in the community by
extending their time at night.
2 - Apply solar energy technology as the enabling technology for sustainable development
 THE MISSION STATEMENT

• We aim to build a culture of excellence by efficient and safe execution of all our
projects.
• We always maintain the highest standards of quality and sustainability and act
responsibly.
• Foster a culture of trust, collaboration, and performance to achieve our business
goals and be an employer of choice.
• Be a responsible corporate citizen and uphold the highest standards of corporate
governance, ethics, and integrity.

3
 VISION
• Moore Renewable Energy aims to contribute to this battle, through the promotion
of solar energy.
• We believe that with the need for change, humanity will surface stronger and more
resourceful in the future.
• Moore Renewable Energy project envisages that the country will one day mainly
use renewable energy sources, breaking the chains of our addiction to fossil fuels
and changing our destructive habits in energy and resource consumption.
• We envisage a country where energy management will be smarter and more
efficient, which in combination with new technologies, will assure our wellbeing
and will lead humanity to new limits.
• The government, organisations, companies, and individual people are trying to
decelerate and potentially even reverse the process of global warming that is
threatening the world as we know it today.
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 ENVIRONMENTAL IMPACT ASSESSMENT
• The provincial authority will also be consulted (i.e., the Limpopo
Department of Economic Development, Environment and Tourism -
LEDET).
• The EIA for the proposed development will be conducted in terms of the
newly released EIA Regulations promulgated in terms of Chapter 5
NEMA (National Environmental Management Act).
• In terms of these regulations, a full EIA is required for the proposed
project.
• All relevant legislations and guidelines (including Equator Principles) will
be consulted during the EIA process and will be always complied with.

5
 COMPANY SUMMARY
The legal name of the company is Moore Renewable Energy Project, is formed as (Pty) Ltd
Company.
Company Ownership
• Moore Renewable Energy Project is owned by its founder will be an active participant in
management decisions.
Company Locations and Facilities
• Moore Renewable Energy will operate in Limpopo, at Moshuka Village, Bakenberg. The
location is approximately 79,3 km away from Mokopane.
• The Renewable Energy facilities will be located on a 1.500 ha. Property owned by
company will be set aside for the Renewable Energy facility set up and operation.
• This site is ideal as it provides access to local municipality and to nearby Mines. Also,
there is room for expansion as the business grows.
• Additionally, Renewable Energy 's business location is in a federally designated
underutilized business zone.

6
• As discussed under the Competitive Comparison section below, this designation gives
Moore Renewable Energy certain advantages in selling to the government and mines.
 LOCALITY PLAN

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 GOVERNMENT LEGAL AND REGULATORY ENVIRONMENT

• Moore Renewable Energy distributes a Solar Energy product and incorporates

it into an environmental product, the company is under the potential
jurisdiction of the Environmental Protection Agency.
• The production and sale of energy may be regulated by federal authorities.
• The company will operate and aligned with relevant legislations, policies with
its prescripts, such as White Paper, SDG’s, the National Integrated Energy Plan
(IEP) to ensure energy security which, in essence, is about ensuring the
availability of energy resources, and access to energy services in an affordable
and sustainable manner, while minimizing the associated adverse
environmental impacts.
• The purpose of the IEP is to provide a roadmap of the future energy landscape
for South Africa which guides future energy infrastructure investments and
8 policy development.
 THE NATIONAL ENERGY ACT 34 OF 2008

AIMS
• To ensure that diverse energy resources are available, in sustainable
quantities and at affordable prices, to the South African economy in
support of economic growth and poverty alleviation, considering
environmental management requirements and interactions amongst
economic sectors.
• To provide for energy planning, increased generation and consumption
of renewable energies, contingency energy supply, holding of strategic
energy feedstocks and carriers, adequate investment in, appropriate
upkeep and access to energy infrastructure.

9
 COMPETITIVE COMPARISON

• Global investment in renewable power and fuels projects are rapidly

increasing and contributing to the recent plateau in global CO2
emissions.
• These investments have benefitted from policies to promote the
production and use of renewable energy that are implemented in
cumulative in many provinces that will be competitive to ESKOM as
the only source of energy in the country.
• We are going to add value to the society, by generating more energy
to service many communities, industries, mines, and other entities

10
 WHEN WILL SOLAR RATES AND STORAGE BE CHEAPER
THAN ESKOM RATES
• We assumed a typical residential electricity usage of 900 kWh/month,
at a current price of R1.40/kWh.
• ESKOM Electricity = R1.92 per kWh
• We estimated a current cost of a solar PV + battery storage solution to
go off-grid at R200 000, plus an additional R30 000 for a solar geyser
and gas oven.
• We assumed a 10% increase in Eskom prices and a 10% decrease in
solar PV + storage system prices per year. (This is conservative, as
discussed above.)
• We assumed a 10-year payback period and 10% interest rate on the
loan to finance the solar PV + storage system.
11
 SOLAR PANELS
• The Solar Energy Plant will have 5200 Canadian solar energy panels, size 2.108 x
1.048 = 2.21m2, thickness = 40mm in an area of 1500 ha
• Let’s say one solar panel:
• 8 hours x 4100 watts = 17,056,000 kWh per day
• 17,056,000 x 7days = 119,392,000 kWh per Week
• 17,056,000 x 30 days = 511,680,000 kWh per Month
• 511,680,000 kWh x 12 months = 6,140,160,000 kWh per year
= 6,140,160 MWh
• One Solar Energy Panel = 18.56% energy efficiency
• Solar panels usually produce between 250 and 400 Watts of power.
• The actual energy production depends on factors like shading, orientation, and
12 sun hours.
 PHOTOVOLTAIC TECHNOLOGY

13
 COMMERCIAL SOLAR ENERGY STORAGE

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 TYPICAL GRID CONNECTED PV SOLAR SYSTEM
• Grid connected systems: These solar power systems are tied with grids so that the excess
required power can be accessed from the grid. They may or may not be backed by
batteries.
• Once the Solar Energy is established it will require power for day-to-day operations.
• This will be for the security systems, utility plants, office complex, maintenance
workshops etc.
• While the power needs may be provided from solar generated power normally, a back-up
supply will be needed from the Eskom distribution system particularly during the early
years, this process will need an off-take agreement which also detailing entering into
long-term Power Purchase Agreements (PPA) with larger renewable energy developers
and selling the power on to their customers.
• The Solar Energy Project will ensure that the establishment and operation of the Solar
Energy Project contributes to the community in which they are located - by job creation,
injection of local spending, skills upgrading, and jobs creation.
• Implicitly the IPP investment model must be designed to support the broad ideals of
15 economic empowerment and transformation, particularly in the areas in which the Solar
Energy Project is located.
 MARKET ANALYSIS

• The demand for energy is at all-times high.

• The Moore Renewable Energy intends to fully benefit from the hype
for solar energy to generate higher revenue streams.
• In this solar project business plan, market analysis was carried out to
better position the business to have a competitive advantage.
• The purpose of the market analysis is to find out the best approach to
market the solar energy project so as to reach out to potential
customers.
• With more people becoming keen on enjoying the benefits of using
solar energy, there are plenty of opportunities for investors to tap.
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 MARKET SEGMENTATION
• In order to ensure business goals are met, Moore Renewable Energy intends to
offer a wide range of services, to provide different types of customers.
• Focus will be placed on offering quality services and deployment of the latest
infrastructure and technologies to ensure this solar energy project realizes its
intended purpose.
• With rapid technology development and favourable government policies on the
use of solar energy, Moore Renewable Energy knows the market is ready for new
investors looking to offer diversified services that will be beneficial to local
communities.
• Considering the favourable business environment, the business expects good
profits.
• This solar energy business plan has identified the following potential customers
17 that need to be approached.
 STRATEGY
• The company will have a strategic plan and policies in place so that customers can
get attracted and engage.
• The very best method to do this is by creating quality content for the consumers
that will help inform, notify, and raise their interest in our renewable energy
services.
• It is important to have a strategy that will outline plans a solar energy project will
use to approach customers.
• There is a new marketing technique that has come to light in the digital era,
utilizing technology.
• Since everyone is using gadgets and they can buy, enquire, and get a helpline
number online using App, consumers are always reading online, researching on
their own for their own needs.

18 • This is where you come into play with Inbound Marketing.

 PROJECT MANAGEMENT PLAN
MOGALAKWENA LOCAL MUNICIPALITY

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 MAJOR PROJECT PHASES AND MILESTONES
• The project is structured in various life cycle phases as shown in Figure below.
• Ground Mounted Solar Pannels Installation.
1. Excavation: dig a single deep hole in the ground.
2. The hole holds a large steel pole, upon which I'll connect my rails and mount
solar panel.
3. Pole-mount systems offer greater clearance from the ground, which is useful
in avoiding foliage or other ground obstructions.

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 PROJECT PHASES AND CONTRACTUAL MILESTONES FOR
5200 SOLAR PANNELS

Project Conception
and Initiation
M1

Project Definition and

Planning
M2

Project Performance and

Monitoring
M3

Project Finishings
and Completion
21 M4
 SUB-PROJECT MILESTONES TABLE
WBS No Phase Milestones Planned Completion
Date
1 P1: Foundations and screed Excavation, mount steel poles End Month 3
& Concrete Inspection
2 P2: Steel Poles Site Inspection End Month 4
3 P3: Mount Solar Pannels Solar Pannels Inspection End Month 6
4 P4: Building Storage & Final Inspection End Month 8
Finishing

• It is important to note that some phases will be running simultaneously:

1. The physical construction with milestones iteratively reached as each of the
5200 Solar Pannel units starts and finishes.
2. Continuous, overall project management, done at management level with
feedback done at monthly meetings.
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 DURATION
WBS NO. TASK NAME STATUS START DATE END ATE
in days
PROJECT CONCEPTION AND INITIATION
1 01/02 04/09 99
1,1 – Project Charter Complete 01/02 03/11 70
1.1.1 –– Project Charter Revisions Complete 01/07 03/11 65
1,2 – Research Complete 01/10 04/23 105
1,3 – Projections Complete 01/10 03/20 71
1,4 – Stakeholders Complete 01/16 03/29 74
1,5 – Guidelines In Progress 01/19 03/01 43
1,6 – Project Initiation In Progress 01/22 04/09 79
2 PROJECT DEFINITION AND PLANNING In Progress 01/28 04/14 78
2,1 – Scope & Goal Setting In Progress 01/28 04/06 70
2,2 – Budget On Hold 01/31 04/02 63
2,3 – Communication Plan Not Started 02/04 04/12 69
2,4 – Risk Management Not Started 02/06 04/14 69
3 PROJECT LAUNCH & EXECUTION Not Started 03/18 07/26 131
3,1 – Status & Tracking Not Started 03/18 06/20 95
3,2 – KPIs Not Started 03/18 06/23 98
3.2.1 –– Monitoring Not Started 03/18 06/26 101
3.2.2 –– Forecasts In Progress 03/21 06/23 95
3,3 – Project Updates In Progress 03/22 06/23 94
3.3.1 –– Chart Updates In Progress 03/25 07/26 124
4 PROJECT PERFORMANCE / MONITORING Not Started 04/25 09/26 155
4,1 – Project Objectives In Progress 04/25 08/28 126
23 4,2 – Quality Deliverables Not Started 04/26 08/03 100
4,3 – Effort & Cost Tracking Not Started 04/25 09/06 135
12/30
01/04
01/09
01/14
01/19
01/24
01/29
02/03
02/08
02/13
02/18
02/23
02/28
03/04
03/09
03/14
03/19
03/24
03/29
04/03
04/08
04/13
04/18
04/23
04/28
05/03
05/08
05/13
05/18
05/23
05/28
06/02
06/07
06/12
06/17
06/22
06/27
07/02
07/07
07/12
07/17
07/22
07/27
08/01
08/06
08/11
08/16
08/21
08/26
08/31
09/05
09/10
09/15
09/20
09/25
09/30
10/05
10/10
10/15

PROJECT CONCEPTION AND INITIATION

– Project Charter

–– Project Charter Revisions

– Research

– Projections

– Stakeholders

– Guidelines

– Project Initiation

PROJECT DEFINITION AND PLANNING

– Scope & Goal Setting

– Budget

– Communication Plan

– Risk Management

PROJECT LAUNCH & EXECUTION

– Status & Tracking

– KPIs

–– Monitoring

–– Forecasts

– Project Updates

–– Chart Updates

PROJECT PERFORMANCE / MONITORING

– Project Objectives

– Quality Deliverables

– Effort & Cost Tracking

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– Project Performance
 MANAGEMENT SUMMARY
Corporate Team
It is consisting of the following:
• Managing Director
• Office Administrator
• Personal Administrator/Receptionist
• Solar Energy Manager
• Marketing Manager
• Financial Officer
• Solar Energy/Sales Officer
• Human Resource Manager
• Solar Energy Operating Technician
25 • Skilled (8), semi-skilled (8) and Un-Skilled Reclaimers (8)
 COMPANY ORGANISATIONAL STRUCTURE

CEO

PERSONAL
MANAGING DIRECTOR ASSISTANT/
RECEPTIONIST

DISASTER RISK HUMAN

SOLAR ENERGY MARKETING FINANCIAL
MANAGER RESOURCE
MANAGER MANAGER OFFICER
MANAGER

SKILLED, SEMI-
SOLAR ENERGY
SKILLED AND UN- SOLAR ENERGY/ OFFICE
OPERATING
SKILLED SALES OFFICER ADMINISTRATOR
TECHNICIAN
PERSONNEL

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 FINANCIAL PLAN – INITIAL FUNDING
Energy Efficiency and Renewable Energy budget
Item Description Initial Budget Request
Vehicle Technologies R65,590,000.00
Bioenergy Technologies R40,460,000.00
Hydrogen and Fuel Cells Technologies R15,480,000.00
Total Sustainable Transportation R121,530,000.00

Solar Panels (5,200 units) R1,834,600.00

Transfer Switch R246,400.00
Inverter Equipment R294,600.00
Wiring/Cables R210,340.00
Solar hallway Retro-fit R528,400.00
Three phase 27.6kw solar Storage plant R428,850.00
Solar External Lighting R201,600.00
Solar Parking structure R156,800.00
Total Solar Generation R3,901,590.00

6x offices, reception, restrooms, including boardroom R1,550,960.00

2,400m²
Parking 600m² R1,240,000.00
Labour - Construction R187,600.00
House plan design R50,000.00
Building Miscellaneous R120,000.00
Office Building R3,153,560.00

Concrete footings/housing R137,200.00

Electrical wiring R177,000.00
27 Steel beam placement R169,120.00
Solar Array installation R252,640.00
Total Additional Installation R735,960.00
 FINANCIAL PLAN – INITIAL FUNDING
Training R2,016,000.00
Personnel Structure R252,406,000.00
Environmental Management R284,800.00
Geothermal Technology R110,720,000.00
Total Miscellaneous R365,426,800.00
Energy Efficiency and Renewable Energy budget
Item Description Initial Budget Request

Advanced Manufacturing R296,160,000.00

Federal Energy Management Program R48,160,000.00
Building Technologies R322,840,000.00
Weatherisation and Intergovernmental Programs R364,560,000.00
Total Renewable Energy R1,031,720,000.00

Facilities and Infrastructure R102,520,000.00

Program Direction R180,704,000.00
Strategic programs R35,680,000.00
Total Energy Efficiency R318,904,000.00

Crosscutting Innovation Initiatives R240,400,000.00

Total Cooperate Support R240,400,000.00

Subtotal of Energy Efficiency Renewable Energy R2,085,771,910.00

Contingency @ 15% R312,865,786.50
Total of Energy Efficiency Renewable Energy R2,398,637,697.00
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VAT @ 15% R359,795,654.50
 IMPORTANT ASSUMPTIONS
The table below presents some assumptions used in the financial calculations of this
business plan.
GENERAL ASSUMPTIONS
YEAR 1 YEAR 2 YEAR 3
Plan Month 1 2 3

Current Interest Rate 7% 7% 7%

Long-term Interest 7% 7% 7%
Rate
Tax Rate 15% 15% 15%

29 Other 0 0 0
 BREAK-EVEN ANALYSIS
▪ To calculate our solar payback period, I simply divide the cost of installing our
system by the amount of money I’ll save each year.
▪ For example, if the solar installation costs R2,758,433,352.00 our system
saves the company R275,843,335.20 a year on our electric bill, our breakeven
point is 10 years (R2,758,433,352.00 / R275,843,335.20 = 10).
▪ That means at the end of those 10 years, our solar panels will have saved us
enough money on electric bill to cover the upfront cost of our system. Year
eleven in the example is when we technically start saving money, having
finally broken even on our investment.
▪ Comparing the different payback periods of multiple solar installation quotes
is one of the simplest ways to understand each option's financial benefits and
understand what year our solar investment will start to save you money.

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 SWOT ANALYSIS
• The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix enables the
managers of the company to develop four types of strategies:
Strengths of Moore Renewable Energy
Moore Renewable Energy company has numerous strengths that enable it to thrive in the
marketplace. These strengths to help in penetrating new markets. Based on some of the
strengths of Solar Energy Management are –
• Highly skilled workforce through successful training and learning programs. Renewable
Energy Management is investing huge resources in training and development of its
employees resulting in a workforce that is not only highly skilled but also motivated to
achieve more.
• Highly successful at the Market strategies for its products.
• Mechanization of activities brought consistency of quality to Renewable Energy
Management products and will enable the company to scale up and scale down based on
the demand conditions in the market.
• Superb Performance in New Markets – Renewable Energy Management will build
expertise at entering new markets and making success of them. The expansion will help
the organisation to build new revenue stream and diversify the economic cycle risk in the
31 markets it operates in.
• There will be a successful track record of developing new products – product innovation.
 WEAKNESS OF RENEWABLE ENERGY MANAGEMENT

Strategy is about making choices and weakness are the areas where a company can improve using
SWOT analysis and build on its competitive advantage and strategic positioning.
• The company has not been able to tackle the challenges present by the new entrants in the segment
and will lose small market share in the niche categories. The Renewable Energy Management has to
build internal feedback mechanism directly from sales team on ground to counter these challenges.
• Investment in Research and Development is the fastest growing players in the industry. Even though
the company is spending above the industry average on Research and Development, it has not been
able to compete with the leading players in the industry in terms of innovation. It has come across as
a mature company looking forward to bringing out products based on tested features in the market.
• Not highly successful at integrating companies with different work culture. As mentioned earlier even
though Renewable Energy is successful at integrating small companies it has its share of failure to
merge companies that have different work culture.
• The marketing of the products will leave a lot to be desired. Even though the product is a success in
terms of sale, but its positioning and unique selling proposition will not be clearly defined which can
lead to the attacks in the segment from the competitors.

32 • There are gaps in the product range selling by the company. This lack of choice can give a new
competitor a foothold in the market.
 OPPORTUNITIES FOR RENEWABLE ENERGY MANAGEMENT
• Organisation’s core competencies can be a success in similar another products field.
• Stable free cash flow provides opportunities to invest in adjacent product segments. With
more cash in bank the company can invest in new technologies as well as in new products
segments. This should open a window of opportunity for Renewable Energy
Management in other product categories.
• New renewable energy policies – The new opportunities will create a level playing field
for all the players in the industry. It represents a great opportunity for Renewable Energy
Management to drive home its advantage in new technology and gain market share in
the new product category.
• New customers from online channel – The Company will invest vast sum of money into
the online platform. This investment will open new sales channel for Renewable Energy
Management. In the next few years, the company can leverage the opportunity by
knowing its customers better and serving their needs using big data analytics.
• The new taxation policy can significantly impact the way of doing business and can open
new opportunity for established players such as Renewable Energy to increase its
profitability.
• The market development will lead to dilution of competitor’s advantage and enable our
Moore Renewable Energy Management to increase its competitiveness compared to the
other competitors.
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 THREATS MOORE RENEWABLE ENERGY FACING
• Changing consumer buying behaviour from online channel could be a threat to
the existing physical infrastructure driven supply chain model.
• Growing strengths of local distributors also presents a threat in some markets as
the competition will be paying higher margins to the local distributors.
• The Solar Power Plant developed by the competitor or market disruptor could be
a serious threat to the industry in medium to long term future.
• Intense competition – Stable profitability will increase the number of players in
the industry over years which will put downward pressure on not only profitability
but also on overall sales.
• Rising pay level especially movements and increasing prices in the country can
lead to serious pressure on profitability of Moore Renewable Energy
Management.
• New environment regulations which underpin renewable energy Paris agreement
34 (2016) could be a threat to certain existing product categories.
 LIMITATIONS OF SWOT ANALYSIS FOR MOORE RENEWABLE ENERGY
MANAGEMENT
• Certain capabilities or factors of a company can be both a strength and weakness at the
same time. This is one of the major limitations of SWOT analysis. For example, changing
Renewable Energy regulations can be both a threat to company it can also be an
opportunity in a sense that it will enable the company to be on a level playing field or at
advantage to competitors if it able to develop the products faster than the competitors.
• SWOT does not show how to achieve a competitive advantage, so it must not be an end.
• The matrix is only a starting point for a discussion on how proposed strategies could be
implemented. It will provide an evaluation window but not an implementation plan based
on strategic competitiveness of Renewable Energy Management
• SWOT is a static assessment - analysis of status quo with few prospective changes. As
circumstances, capabilities, threats, and strategies change, the dynamics of a competitive
environment may not be revealed in a single matrix.
• SWOT analysis may lead the company to overemphasize a single internal or external factor
35
in formulating strategies. There are interrelationships among the key internal and external
factors that SWOT does not reveal that may be important in devising strategies.
 RISK ANALYSIS Cont…..
• Risk refers to uncertainties or potential losses in various forms, mostly in financial form or setbacks.
• Many of these risks affects business decision making and may not be predicted with high accuracy.
• Most common sources of in Moore Renewable Energy Management Project are divided into 4
categories as follows:

Financial
Risk

Human or Institutional
Personal Risk BUSINESS RISK Risk

Marketing
Risk
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 RISK ANALYSIS Cont….
Financial Risk
• Financial risks result from the way the company will be financed. Obtaining finance
for capital to fund the business may be a challenge.
• Poor financial management due to the lack of experience and professional
trainings.
• The higher loan interests.
Institutional Risk
• Institutional risk refers to unpredictable changes in the provision of services from
institutions that support environment.
• Uncertainties in government policies such as subsidies affect Moore Renewable
Energy Management.
• Currently, they are also Acts that the company should comply with in Renewable
Energy Management streams.
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 RISK ANALYSIS Cont….
Human or Personal Risk
• Human risks are common to all businesses where a company can be
disrupted by events such as deaths, injury, or poor health of the project
management personnel.
• Death of a highly experienced employee in management is detrimental to
the business where replacing such individual could be difficult.

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