Structura, Inc. Case Study
Structura, Inc. Background of the Case
On February 27, 1981, the Federal Republic of Germany and the Republic of the Philippines entered into a contract to develop applications of solar energy in the Philippines. The project was called the Philippine-German Solar Energy Project (PGSEP). It was funded by the German companies with a counterpart fund from the Philippines Office of Energy Affairs (Non-Conventional Resources Division). Philippine National Oil Company (PNOC) was the implementing arm through its Energy Research and Development Center (ERDC).
The technology introduced by the Germans is for the installation of stand-alone photovoltaic energy generating systems or solar energy systems for households that are out-of-reach from the conventional power grid. More than 17 kilometers of distance from the power grid would make the PV systems unfeasible because if it is much shorter than that, the cost of extensions line from the power grid will be cheaper.
PGSEP is looking for a local group or company to undertake the project commercially because the contract prohibits PGSEP from commercializing the venture. Anton Co the entrepreneur-owner of ALCO Group along with Bingo Dimalata, the consultant of the company, were invited to see the prospects. Anton Co’s intuition was optimistic but he asked Bingo to the make a study and assessment on the prospects. ALCO Group is the mother company of Structura, Inc. (SI). SI has been working with PGSEP for 4 years, manufacturing best quality steel frames and bases for the solar panels. Now there’s an opportunity for SI for a business venture in commercializing the PV systems. Bingo Dimalata will make his recommendations on the viability of the SI project which is the commercialization of those PV systems.
Statement of the Problem
* Should Structura, Inc. Push Through with its Project On Commercialization of Photovoltaic Systems?