stakeholder management
Case 2 & 3 - Sample Solution for Home-Work - 22.10.2020: Case Analysis - Dii This case covers the wider planning phase for the implementation of energy generation for the long term future in Europe. The desertec industry initiativ (Dii) intented to implement a theoretical vision to secure ecological power supply to Europe. The hurdles of generating power in the desert of Sahara is the geographical distance, poor infra- structure, heterogenius governamental framework, and unproven technology. As such Dii tried to bring the stakeholders together and facilitate the cooperation of suppliers, financial institutions, utilities, and governments from Europe and Africa. Dii was a plattform to implement projects. Therefore, ist objective was to coordinate and manage stakeholders. In parallel, individual companies regardsless of Dii-Member or not partnered-up in order to implement and test the technical feasibility of CSP and photovoltaic technology. Most Dii members were also active in the bilateral market of partnering. Dii members sponsored an office in Munich and posted selected employees. Their work focussed on feasibility studies and fact finding to select possible project locations. Dii tried to manage the stakeholders „governments“ for project locations (mainly Morocco, Saudi Arabia) and for project sponsoring (Germany, Spain, Italy, France). The Dii members were also stakeholders for construction and financing. Stakeholders Analysis (Dii): Dii Members: High Interest / medium Power: Members invested money and people and see Dii as a chance for new energy. Due to their direct influence only on their share they have only medium influence. Governments (Location): Medium-Low Interest / High Power: To attract renewable energy is a nice to have. The need for cheap energy is in focus for the local people. Export energy is questionable. The licencing gives regional government high power. Governments (Sponsoring): High-Medium Interest / Low Power: The governments financial support facilitates investments and projects. However, they can only indirectly influence the decision process to invest for a project. Case Analysis - JV Partnering E.ON was in need to build-up their renewables-solar footprint, in order to comply with their strategy to divers their power-park portfolio. E.on looked for a sustainable partner in the CSP technology, who was willing to share technology know-how. Stakeholders Analysis (JV Partnering): E.ON: High Interest / Medium Power: CSP technology provider were scarce and projects were in demand. E.ON wanted to develop the their solar protfolio. Abengoa: High Interest / High Power: Abengoa was not financially strong, but was a key player in the CSP business. Financial support from other companies was available and Abengoa had more than E.ON as a partner.
Case Analysis - Construction Once E.ON and Abengoa formed the JV construction started and the partners posted their employees and contractors to the JV. The JV created a project company for the power plant. Both partners provided each 50% Cash of the 250mio€ constructions costs and the rest was financed by a syndicate of banks. During construction 1000 workers were on site, that came from the region as well as from the rest of Spain and other European countries. Their skills ranged from specialist (30%), skilled (30%) to unskilled (40%). Most were employeed through contracors and temp-agencies. During construction a portion of the construction plans needed to be adjusted which required local authority involvement. Neighbors were not supportive of construction Stakeholder Analysis - Construction E.ON: High Interest / Medium Power: E.on was the sponsor of the project looking at ist return on investment but handed over executive control to ECR. ECR: High Interest / High Power: ECR was mandated the control from E.ON and was responsible oft he success oft he project. E.ON Engineering (EEG): Medium Interest / Low Power: EEG was not directly responsible for success of the project only an engineering contractor on behalf of ECR. EEG solicitated ist service to ECR and was dependen on EON Spain and ECR decisions. E.ON Spain: High Interest/ High Power: E.ON Spain was responsible for the spanish generation portfolio and managed the link to the authorities in Spain. Its president was also chairman of the project companies and had direct influence on the management. Abengoa Solar (AS): High Interest / High Power: AS was responsible for construction. Bank Syndicate: Medium Interest / Medium Power: Banks find sufficient investment alternative oportunities. Their influence rises only once the project does not meet the debt covenants or payments. Government/Authorities: Medium Interest / High Power: The government provides the framework for construction and controls its compliance to the rules and regulations. The success oft he project is not their focus. Workforce: High Interest / medium power: In times of high unemployment workes are happy to have a job. Their negotiation power is limited as their representation is spread over numerous organisations. Neighbor: High Interest / Medium Power. The neighbor is directly impacted by the construction of the plant (noise, pollution, trasspassing). The rules put the public interest oft he benefits of a power plant high than the rights oft he neighbor.