Renewable energy has taken off. The climate change crisis and the increasing need for sustainability have prompted governments, investors, and users to shift to renewable energy. For that reason, the market has many new entrants as can be deduced from increased investment in the sector – global investments related to the energy transition amounted to $755 billion in 2021.
This growth notwithstanding, guiding a renewable energy company to success remains challenging. There is growing competition and demand from customers is always dynamic. It doesn’t matter whether you are established in the industry or are just a startup; the basic principles of managing a renewable energy company apply.
Renewable Energy Company Management: A Short Definition and Preview
Management has many definitions, but it all revolves around the process of control and decision-making over the people’s actions to achieve preset goals.
Running a renewable energy company entails more than just working hard. The secret to successfully managing a renewable energy company is following a laid-out plan for ultimate success.
Once the systems and processes are in place, company management needs to constantly search for areas of improvement and act. Below are several fundamentals to answering the all-important question: How can I effectively manage a renewable energy company?
- Follow the Company Strategy
Every renewable energy company manager must first identify and seek to implement the company strategy because this is what forms the heart of the business. The vision and mission statements communicate the purpose and strategy of the company.
Ensure that all the company departments and their efforts are aligned with the strategy. While at it, note that agility in the dynamic market is an essential element of renewable energy businesses, meaning that the strategy may be subject to regular review.
- Establish Company Financial Health
Money keeps things moving in a business. Ensuring the financial health of the company is about first, finding a means of predicting the cash flow. The company needs to have an expenditure budget and also identify potential areas for generating revenue. Still, on the financial element, the management may want to analyze the competitors closely to know if your business is still on the right path.
- Build Robust Operations
Smooth-flowing operations contribute to a steady company. Some of the inner workings that are crucial for your business are inventory management, order fulfillment, and warehousing. Take care of the processes and systems to enhance the success of your business. We can segment the operations of the energy company into the following:
If a renewable energy company lacks a marketing strategy with clear objectives, it will probably not go far. That’s why a marketing plan is necessary to promote the business. Make your company marketing efforts effective by defining the company’s place in the market, defining the buyer persona, sending clear messages, using social media effectively, and reaching out through blogs.
b)Company Equipment and Technology
For the company to run and do all the related operations such as marketing and logistics, it needs equipment and technology. You want to understand the needs of your company in this regard vis-à-vis the budget. You may be required to be creative when navigating this aspect. For instance, the company may require certain equipment only a few days every year. You may opt to hire or outsource this equipment instead of buying it to save money.
Depending on the kind of renewable energy business you are in, the complexity and size of equipment and technology used may differ. Some renewable energy companies, for instance, consultancies, may only rely more on management software and less on conventional equipment.
c) Human Resources Management
Management must take care of its employees so that they can take care of the business. First, make sure you have the right people for the job. Some jobs may require freelancers and others full-time employees. Choosing between full-time employees and freelancers can be tricky, but here are tips to use when hiring.
If you want to get the best from your people, you need to let them know that they come first. Everyone values growth and development, so you want to set up mechanisms for enhancing knowledge and skills. When the people in the company are happy, they will generate energy and push the business to the next level.
d) Invest in Data Analytics
Updated data analytics is essential for the management of any renewable energy company, especially when making important decisions. For companies with diverse assets in different places regionally or across the world, it is important to be able to determine performance at all levels. Every component in the fleet – turbines, inverters, meters, etc. – need to be captured.
Modern RE businesses are investing in renewable energy asset management software to get all the answers they need regarding performance. Use our tool and personnel to get in-depth reviews and reports that will help your business reach higher heights.
For most renewable energy companies, the coronavirus pandemic and many other challenges have brought dislocations and pains that may be felt for many years to come.
It is upon the manager to inject direction and energy into their teams. In line with Albert Einstein’s sentiments that “amid every crisis, lies great opportunity,” managing a renewable energy company in this era is about grasping opportunities for improved performance and higher growth.
QBI Solutions is ready to accompany you on this journey.