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| − | <span lang="EN-GB" style="font-size: 14pt; font-family: 'arial','sans-serif'"><font size="2">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.</font></span> | + | <span style="font-size: 14pt; font-family: 'arial','sans-serif'" lang="EN-GB"><font size="2">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.</font></span> |
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| − | '''<span lang="EN-GB" style="font-size: 14pt; font-family: 'arial','sans-serif'">Key factors for successful local production</span>''' / manufacturing | + | '''<span style="font-size: 14pt; font-family: 'arial','sans-serif'" lang="EN-GB">Key factors for successful local production</span>''' / manufacturing |
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| − | <span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'"><span>1)<span style="font: 7pt 'times new roman'; font-size-adjust: none; font-stretch: normal; -x-system-font: none"> </span></span></span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">Relevant market: </span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">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.</span> | + | <span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB"><span>1)<span style="font: 7pt 'times new roman'"> </span></span></span>'''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">Relevant market:</span>'''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">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.</span> |
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| − | <span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'"><span>2)<span style="font: 7pt 'times new roman'; font-size-adjust: none; font-stretch: normal; -x-system-font: none"> </span></span></span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">Time factor: </span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">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.</span> | + | <span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB"><span>2)<span style="font: 7pt 'times new roman'"> </span></span></span>'''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">Time factor:</span>'''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">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.</span> |
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| − | <span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'"><span>3)<span style="font: 7pt 'times new roman'; font-size-adjust: none; font-stretch: normal; -x-system-font: none"> </span></span></span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">Cluster: </span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">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.</span> | + | <span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB"><span>3)<span style="font: 7pt 'times new roman'"> </span></span></span>'''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">Cluster:</span>'''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">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.</span> |
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| − | <span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'"><span>4)<span style="font: 7pt 'times new roman'; font-size-adjust: none; font-stretch: normal; -x-system-font: none"> </span></span></span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">No grants to the manufacturers</span>'''<span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">. Better use (soft) loans or even better create trust for long-term investments like the German Feed-in Law did.</span> | + | <span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB"><span>4)<span style="font: 7pt 'times new roman'"> </span></span></span>'''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">No grants to the manufacturers</span>'''<span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">. Better use (soft) loans or even better create trust for long-term investments like the German Feed-in Law did.</span> |
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| − | <span lang="EN-GB" style="font-size: 10pt; font-family: 'arial','sans-serif'">Source: Outcome of a discussion during the GTZ mini-hydro power working group meeting in Nairobi, May 2009.</span> | + | <span style="font-size: 10pt; font-family: 'arial','sans-serif'" lang="EN-GB">Source: Outcome of a discussion during the GTZ mini-hydro power working group meeting in Nairobi, May 2009.</span> |
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| − | <span lang="EN-GB" style="font-size: 14pt; font-family: 'arial','sans-serif'">'''Examples'''</span>
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| − | *[[Example: Mini & micro hydro power turbine manufacturing in Indonesia|<u>Example</u>: Mini & micro '''hydro power '''turbine manufacturing in '''Indonesia''']]
| + | <span style="font-size: 14pt; font-family: 'arial','sans-serif'" lang="EN-GB">'''Examples'''</span> |
| − | *[[Example: Wind power plants and components|<u>Example</u>: '''Wind power '''plants and components]]
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| − | *[[Local manufacturing of solar systems|<u>Example</u>: Local manufacturing of '''solar systems''']]
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| − | *[[Production_of_Woodfuel_Stoves#Production_systems_and_quality_management|Local Production Systems of Wood Stoves]]
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| − | [[Category:Hydro]] [[Category:Solar]] [[Category:Wind]] | + | *[[Example: Mini & micro hydro power turbine manufacturing in Indonesia|<u>Example</u>: Mini & micro '''hydro power '''turbine manufacturing in '''Indonesia''']] |
| | + | *[[Example: Wind power plants and components|<u>Example</u>: '''Wind power '''plants and components]] |
| | + | *[[Local manufacturing of solar systems|<u>Example</u>: Local manufacturing of '''solar systems''']] |
| | + | *Local Production Systems of Wood Stoves: [[Enhancing_production_of_ICS]] |
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| | + | [[Category:Wind]] |
