Power Generation in South Africa

Part
01
of three
Part
01

Power Generation in South Africa: Wartsila, Karpowership

After conducting extensive research, we were unable to find information on Wartsila and Karpowership's power generation marketing strategies in South Africa over the past 12-24 months. However, We found some information on the general marketing strategies of the two companies and their social media handles through which contains some marketing messages. Below is an overview of the strategies employed to get data and information on the request. We have also included the helpful findings we got during our research.

research strategy

In order to find information for Wartsila and Karpowership marketing strategy and implementation in South Africa, we searched for directly available information about their marketing and advertising strategies in their official websites' blogs, news and press releases. We hoped to find directly available information about projects and partnerships that might lead to any marketing strategy the companies are doing. We also checked if there were any reports that were available in marketing sites such as Adage, Martech Today, Ad Weekly, Digital Agency Network and others; business sites like Bloomberg, PRNewsWire, Forbes, Financial Times, Mail & Guardian, The Economic Times, Business Insider and the likes; energy websites such as African Energy, Breaking Energy, Energy Digital, Energy World Magazine, Africa Energy Group, Renewable Energy News and other similar sources. Based on this search, we were not able to find any all-encompassing reports regarding Wartsila and Karpowership marketing strategy and implementation in South Africa. What we found were not specific to the South African region but instead the reports were from the other regions in Africa.
For our next strategy, we proceeded to check if there are any commissioned reports released by the South African government (Energy Department) regarding any signed agreements made with Wartsila and Karpowership that might lead to information on how these companies market and implement their energy services and products in the region as to why they have been chosen. We searched for this in sources in South African government energy domains such as National Energy Regulator of South Africa, National Nuclear Regulator, Central Energy Fund, Electricity Distribution Industry Holdings and similar sites. Based on this search strategy, what we found are agreements made by South Africa's neighboring regions (Sierra Leone and Gambia). There were no data found on these sites that is specific to the South African region.
We then tried another search approach by looking for any related advertising made by the South African advertising agencies regarding Wartsila and Karpowership that might shed some information about how they market and implement their energy services and products. We looked for these in the South African advertising agency sites such as Creative Counsel, Ogilvy & Mather South Africa, Publicis Machine, Saatchi & Saatchi, RADAR, Y&R South Africa, ninety9cents, Net#work BBDO and similar sites. Additionally, we also looked for advertisements made by these companies in their official social media websites (YouTube, Linkedin, Twitter, Facebook, Instagram). Based on the search we made, we did not find any specific or any advertisements made by Wartsila and Karpowership. However, we found several advertisements in their YouTube channel but it is not specific to South African region, the advertisements were made for the general or global market.
As per the research criteria's strict instruction about the time line scope and regional focus, we could not triangulate given the lack of specific information regarding Wartsila and Karpowership marketing strategy and implementation in South Africa. Nonetheless, we have included some data points about the companies marketing strategies (not South Africa region specific) that applies to their global market in the Helpful Findings' section.

helpful findings

WARTSILA

Marketing

• The President of Wartsila Energy Solutions Javier Cavada, stated that the project highlight their commitment to sustainability and innovation using their latest hybrid energy solutions which allows their clients to seamlessly integrate more renewable energy into their grids even in a remote and challenging location.

Wartsila's Sales & Marketing Director, Matti Rautkivi stated that the company is changing its strategies to involve more renewable and flexible generation equipped with new technology.
Wartsila's marketing strategies include embracing new technology, business models and partnering possibilities.
• To point out the company's marketing transformation towards utilizing a 100% renewable energy with flexible capacity, Wartsila launched the Smart Energy vision and introduced new solutions for the integration of renewable and storage.
Wartsila Flexicycle power plants are composed of standardized modular units. This makes it easy to expand and operate both in combined cycle mode and fast simple cycle mode.

Clients and Partners (Africa 2018)

Wartsila was selected to build a 15MWp solar PV plant by the global renewable energy independent power producer Total Eren SA. African Energy Management Platform also commisioned them to generate and deliver energy to Burkina Faso's gold mine operated by Iamgold Essakane SA.

Marketing Channels

Wartsila's social media marketing presence includes YouTube, Twitter, Facebook, Linkedin, and Instagram.

KARPOWERSHIP

Marketing

Assistant Plant manager of Karpowership, Kocak stated that the company is focusing on Africa and the Middle East market since these regions still need energy for industrial purposes and domestic requirement.
Sandra Amarquaye, Corporate Communications Specialist of Karpowership stated that the company's uniqueness makes them a one-stop solution with their powership's ability to operate on heavy fuel oil or natural gas making it easy to deploy.
• Sandra Amarquaye also stated that the company will continue to supply affordable, reliable and sustainable electricity to Ghana's national grid.
• Minister of Energy Ambassador Henry O. Macauley noted that Karpowership's ability to deploy fast track utility Powerships will address the immediate requirements with economical and flexible solutions to their energy needs.
Mehmet Katmer a representative of Karpowership noted that the company's Karadeniz Powership Koray Bey capacity of 37MW can provide sustainable electricity to the people of Gambia for a short or long-term electricity need.

Clients and Partners (Africa 2018)

Karpowership has signed an agreement with Sierra Leone’s Electricity Distribution and Supply Authority, Ministry of Energy, and Ministry of Finance and Economic Development to provide 30 MW base load capacity, directly feeding the national grid for 5 years.

Karpowership has signed a Power Purchase Agreement supplying with the National Water and Electricity Company (NAWEC) and the Ministry of Energy of Gambia at Banjul to supply 33% of Gambia's electricity need for 2 years.

Marketing Channels

Karpowership's social media marketing presence includes YouTube, Facebook, Twitter, and Linkedin.
Part
02
of three
Part
02

Power Generation in South Africa: Siemens, Ansaldo Energia

After conducting an extensive search, we determined that Ansaldo Energia's digital transformation comprises change management and smart working among others. Siemens' launched the Next47 program that enables entrepreneurs to create and develop business ideas with the guidance of mentors. This and other information is provided on the attached spreadsheet.

POWER GENERATION IN SOUTH AFRICA

SIEMENS

MARKETING STRATEGY OVERVIEW

Siemens provides field support and expert factory services. This includes repairs, maintenance, modernization, and upgrades of components including steam turbines, gas turbines, wind turbines, and generators. Siemens offers its services to industrial power plants, large-scale producers, and compressors in the gas and oil industry. This is made possible by the global extensive network of service. Next47 boots the growth of Siemens in automation, electrification, and digitization sectors. They identify new trends and invest in them, this way future-oriented businesses are created. New business trends are developed through extrapolation strategies. The research and development arm of Siemens prides in being the strategic partner of the company. It ensures that the company maintains the lead in the fields of electrification and automation as it assists the company to grow digitally.

MARKETING STRATEGY IMPLEMENTATION

The value chain at Siemens is improved by promoting digitization in its business dealings, from the manufacturing of goods, handling business projects, defending IP rights, to protecting inventions.
The company has opened up growth opportunities by creating better market access through the implementation of new sales and marketing strategies. Siemens' market penetration has increased through electrification, digitization, and automation. Siemens in collaboration with Alchemist launched an internal accelerator program called Next47 in 2019. The program enables Siemens entrepreneurs to create and develop their business ideas with the guidance of mentors and coaches. This will create the next generation of innovation for the company.

ANSALDO ENERGIA

MARKETING STRATEGY OVERVIEW

Ansaldo Energia (AE) is laying the ground for sustainable growth in power generation by growing its global market reach, product portfolio, and technological capability. The company has also ventured in the power generation business. Shanghai Electric is one of the stakeholders in the power generation market. AE is enabling the deployment of gas to be used as a primary source of power since gas prices are convenient and affordable in some areas. Such areas include a number of the African States, the United States, and the Middle East countries.

The combination of Shanghai Electric's steam turbine energy production and AE's gas turbines energy production methodologies creates a technological synergy, which has led to growth in technological and commercial nourishment to AE. AE's product portfolio will be completed by the technological intellectual property rights, and the GT26 gas turbine upgrade. The creation and trading of the GT36 for the 50HZ and the 60Hz markets will enable the company to compete in the large size 60Hz gas turbine market. This will shorten the gap in technology for the POST F class, of the latest generation turbines.

MARKETING STRATEGY IMPLEMENTATION

The European Bank offered Ansaldo Energia a 50 million EUR investment loan. This demonstrated how solid the company's R&D activities are. Projects related to flexibility and improving performance were noted to be valuable, and therefore, worth financing. Performance improvement is in terms of power output and efficiency. The company's ambitions are growing from new partner's perspectives, new corporate assets, and penetration to new markets. The company is seeking new prospects for development including technological platforms. Ansaldo Energia is counting on strategic partners like ABB who are reliable when it comes to new technological challenges.

Ansaldo Energia began empowering the development and implementation of ICT infrastructure and platforms many years ago, in order to support the ongoing competitive improvement of its processes and products. Ansaldo Energia has a road map and the 50M EUR investment to leverage the efforts of setting up the digital twin of all its core and processes. The company's digital transformation includes change management, smart working, and digital skill improvement. The introduction of digital architects and data scientists will enable the company to achieve the required benefits in the digital transformation. Digital marketing and sales will enable the company to track the customer life cycle, from the prospected customers to the retained customers. Smart products and services will ensure value is generated to customers through the Byte2Energy project and the Multi-OEM Platform Service.
Part
03
of three
Part
03

Power Generation: Eksom and Vitol

Vitol does not directly engage in power generation in South Africa. It has previously invested in a coal plant through CIC Energy Mmamabula energy project. Eskom has multiple power generation projects in South Africa.

Methodology

We engaged in a review of Eskom's power generation agreements by reviewing the company's website. We limited our research to identifying power generation projects and partnership deals undertaken in the last 24 months. The findings were presented in the research brief and provided the spreadsheet.

An extensive search of Vitol website and reputable news sources revealed no press releases on Vitol's power generation activities over the last 24 months.
Given searching for press releases was fruitless, we changed to reviewing economic reports on energy generation activity in South Africa with the intention of picking out Vitol's project from the reports. We combed through Africa Energy, Construction Review Online, AFDB, and World Bank websites to identify mentions of Vitol's investment in energy generation projects in South Africa. The research did not reveal any information on Vitol's power generation activities in South Africa.
Lacking direct information on Vitol's energy generation activities over the last 24 months, we sought to provide information on energy generation activities undertaken by Vitol preceding 24 months. In our research, we would provide the current status of these projects. Additionally, we sought to identify power generation activities by Vitol subsidiaries or in companies where it had minority ownership. Lastly, we sought to provide information on the exposure of Vitol to energy generation projects if it did not directly engage in power generation.
It is important to note that Vitol is a crude oil distributor. Energy generation is a non-core activity at Vitol.

Eskom

Eskom investment in the Kusile Power Generation project has been key to the delivery of additional energy production capacity in South Africa. In 2019, the launch of its Unit 3 of Kusile Power Station was synchronized to the national grid delivering 800MW to the national grid. In 2017, Unit 1 of the Kusile Power Station was launched. The unit delivered 800 MW to the national grid.
In 2017, Eskom signed a $1.5 billion loan agreement with China Development Bank. The agreement gave impetus to Eskom efforts to increase its power generation capacity. The Chinese financing was to form contribute to Medupi Power Plant capital financing needs.
In 2018, Eskom signed a loan financing deal with the German Development Bank. The agreement involved a loan facility of $100 million. The investment would support transmission and energy generation by Eskom. Particularly, it would support renewable energy production projects by Eskom.

Vitol

Power generation activities

In 2012, Vitol took up a 9.1% equity share in CIC Energy. The investment was key in CIC's pursuit to develop the Mmamabula energy project in Botswana. The project was to supply Eskom with 600MW for South Africa's energy needs. CIC Energy was acquired by Jindal Africa In 2012. Jindal Africa is currently engaging in the completion of the Mmamabula energy project construction.

Vitol's Exposure to power generation in south africa

  • Vitol is a leading distributor of crude oil internationally as well as to South Africa. However, it does not engage in power generation in South Africa. Its highly likely that Vitol has oil supply contracts with independent power producers in South Africa.
  • In 2016, Vitol's joint venture with Helios invested US$210 million in Oando PLC. Oando PLC is a Nigerian energy producer listed in the South Africa JSE. The company has limited operations in South Africa. Potentially, the company could leverage its Nigerian expertise in energy generation to set up energy generation plants in South Africa. Unfortunately, Oando PLC has does not have a South African energy generation license.
  • In 2018, Vivo Energy listed on the London Securities Exchange. Before the London listing, Vivo Energy was solely owned by Helios and Vitol. Currently, Vivo Energy is the leading downstream distributor of crude oil in Africa. Despite extensive investment in South Africa, Vivo Energy does not have energy generation investment in South Africa. Its highly likely that Vivo Energy has oil supply contracts with independent power producers.
  • In 2017, Vitol would have purchased the Richards Bay Coal Terminal. Richards Bay Coal Terminal is the largest coal trading terminal in South Africa and would have provided Vitol a foothold in coal use for its own energy production or supply to other energy producers. The deal collapsed after the terminal owners were involved in a corruption scandal in South Africa.

Sources
Sources

From Part 01
Quotes
  • "Wärtsilä was selected by the global renewable energy independent power producer Total Eren SA and African Energy Management Platform (AEMP) to build a 15MWp solar PV plant that shall generate and deliver energy to Iamgold Essakane SA at its gold mine in north-eastern Burkina Faso."
Quotes
  • "Market shaping and innovation involve a fresh approach to new technology, business models and partnering possibilities."
Quotes
  • "Wartsila Flexicycle power plants can operate both in highly efficient, combined cycle mode and in dynamic, fast simple cycle mode."
  • "The combination of flexibility and efficiency makes Wartsila Flexicycle power plants ideally suited to load-following in a power system whilst also being competitive at near baseload dispatch profiles."
Quotes
  • "The arrival of Karadeniz Powership Dogan Bey is in consonance with the Utility Grid Infrastructure and Electricity Supply Agreement signed with Sierra Leone’s Electricity Distribution and Supply Authority, Ministry of Energy, and Ministry of Finance and Economic Development, requiring Karpowership to provide 30 MW base load capacity, directly feeding into the national grid for 5 years."
Quotes
  • "A Power Purchase Agreement was signed with the National Water and Electricity Company (NAWEC) and the Ministry of Energy of Gambia at Banjul, the capital city of Gambia, to meet 33% of Gambia's electricity need for 2 years."
Quotes
  • "Karadeniz Powership Onur Sultan, the largest floating power plant in the world, is on its way to Medan, Indonesia."
Quotes
  • "We signed an Electricity Sales Contract with NAWEC and Gambia Ministry of Energy to provide 33% of Gambia's electricity needs for 2 years."
Quotes
  • "As Karpowership, we see our local clients as our hosts, and ourselves as humble guests - wherever we operate."
Quotes
  • "Wartsila is the global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets."
Quotes
  • "Enabling sustainable societies with smart technology."
Quotes
  • "We enable sustainable societies with smart technology."
Quotes
  • "Wartsila’s purpose is to enable sustainable societies with smart technology."
Quotes
  • "We are a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets."
From Part 02
Quotes
  • "Through extensive service network around the world, Siemens offer expert factory or field service support, maintenance, repairs, replacements, modernizations and upgrades of components, such as gas, steam and wind turbines as well as generators, in large-scale and industrial power plants, and compressors for the oil and gas industry."
Quotes
  • "Next47 generates growth in Siemens' fields of Electrification, Automation and Digitalization. Identifying new trends, investing in them and developing future-oriented businesses in collaboration with innovative partners."
  • "Extrapolation & Retropolation strategy to tap new business trends."
Quotes
  • "Siemens’ central research and development arm sees itself as a strategic partner to the company’s businesses. It plays a key role in achieving and maintaining leading competitive positions in the fields of electrification and automation while at the same time helping Siemens fully tap into the growth field of digitalization"
  • "Promoting digitalization at Siemens, Improve the value chain in all types of business – from the manufacturing of products to project business and services,Protecting inventions and defending IP rights."
Quotes
  • "We see growth opportunities in opening up access to new markets and customers through new marketing and sales strategies, which we have hence integrated into our Divisional master plans. Our position along the value chains of electrification, automation and digitalization allows us to further increase market penetration"
Quotes
  • "Next47 Accelerator, our internal accelerator program which we run in partnership with Alchemist, launched in 2019. This is a platform for Siemens intrapreneurs to develop their business ideas with the support of an unrivaled network of coaches and mentors in order to build the next generation of innovation for Siemens."
Quotes
  • "Ansaldo Energia is laying the foundations of sustainable growth in the power generation sector by extending the company’s global reach, technological capability and product portfolio. Ansaldo CEO Giuseppe Zampini explains how the company is moving forward."
  • "Ansaldo Energia is also entering this big but complex market with the addition of Shanghai Electric among its stakeholders. In some areas of the world, the gas price is particularly convenient thanks to the presence of old and new oilfields and the deployment of new extraction technologies (see the initial growth of shale gas in the U.S.). "
  • "This is facilitating its deployment as a primary energy source for power generation. Mainly, we’re talking about the U.S., many African states and almost all of the Middle East."
  • "The technological synergy includes Shanghai Electric’s know-how in the production of steam turbines, and Ansaldo’s expertise with gas turbines. This will provide new commercial and technological nourishment to Ansaldo Energia, which from now on will be perceived in the market as a really multinational group."
  • "Firstly, the technological intellectual property rights and the upgrade of the GT26 gas turbine - the top performing large combined cycle gas turbine - will complete Ansaldo Energia’s product portfolio and enhance the maintenance market for such turbines. "
  • "The development and further trade of the GT36 for both the 50Hz and the 60Hz markets will enable Ansaldo Energia to enter for the first time the large size 60Hz gas turbines market, and to shorten the technological gap in the POST F class of latest generation turbines."
Quotes
  • "Ansaldo Energia started many years ago to empower its ICT infrastructure and platforms to support the continuous competitive improvement of its products and processes. Such effort has been boosted in the last years through a Digital Transformation Roadmap with an invested of more 50M€ in 2018-2020 aimed to setup the digital twin of all its core and supporting processes."
  • "Our Vision put Human Capital in the middle of its Digital Transformation: change management, digital skills improvement, smart working and introduction of new roles (data scientists, digital architects) are key enablers to achieve the expected benefits of AE investments in Digital Transformation."
  • "Customer on focus by Digital Marketing & Sales to track the whole customer life cycle from prospect to retained; • Smart Product & Service where digital supports the new integrated paradigm to generate value to our customers mainly through the Byte2Energy project. Multi-OEM Platform Service - Our Specialty."
Quotes
  • "Siemens and Ansaldo Energia's power generation marketing strategies in South Africa over the past 12-24 months were identified and entered in the rows 3-5, columns E-F (Siemens, Ansaldo Energia) in the COMPETITORS TAB of the attached spreadsheet"