Another strama on a power company whose strategy is not responsive to current power situation and innovations

                                           

                           This l gW coal plant in Australia will be closed in 2014


I have read another strategic management paper on power generation.  The strategy being proposed is not responsive to the following external developments:

1.  innovation in renewables;  lower operating cost on renewables especially solar and wind;

2.  green innovation vs black technology (coal fossil fuel)

3.  effect of black technology on climate change:  global warming causing severe typhoon and resulting costs from flooding etc.

4.  concern on the environment;   the carbon emission from bunker fuel may hurt the host province which prides itself in being green and eco tourism; as one of the heritage sites in natures beauty.

5.  The increase in tourism ups the demand for power.

6.  Also the lack of power in Northern side of the province (a tourist spot) is not being addressed and the possibility   (Electricity in resort town only from 2pm to 6 am) of more brown outs in the island province ( From Interasksyon - brown outs in island province)

Again, I would like to repeat my criticism of the old strategy (without creativity - Purple Cow and Blue Ocean Strategy)  The strategy being presented is just a rehash of the continuation of the past (a rear view mindset), being more efficient, increasing market share.  Nothing new, nothing unusual.  Without the commitment to change over the long term, the following may eventually happen to the small power gen:

1  Shuttering of the Mallerawang coal plant in Australia due to changing market conditions.  Stiff carbon tax/fines and competition from low cost rooftop solar panels have made the coal plant uncompetitive.  It should be noted that most coal in the world comes from Australia (the whole of Sydney sits on top of a very large coal deposit)

The link also mentions the decline in the load factor of old black technology in Europe;  it is down to 49% in 2012.

The strama paper is oblivious to these external factors/technological development;  and even the last E of PESTEL  -  ecological











Proposed plan to put up coal fired power plants in Central P to supply 45 mW stirs up debate.  Coal plants are the dirtiest and emit a lot of carbon contributing to climate change.