Business Plan
I.
Executive Summary
Energy sources are a large component in the sustainability of a city.
Without a constant source of energy, a smart city is unable to run
smoothly and will eventually falter. This is why the most important
issue concerning smart cities today is a need for various forms of
alternative energy that can replace the large use of fossil fuels. It is
very common in today’s large cities to use fossil fuels (among other
harmful techniques) to provide for the needs of the city. However,
the large use of fossil fuels is dangerous to the environment and to
the health of humans and animals. Using clean energy will make a
city more sustainable in the long run. In order for the city to be
smart as well as sustainable, the clean energy techniques need to be
widespread as well as location efficient. This issue is the problem
that our business is seeking to solve.
Our business idea can best be conveyed if the setting takes place in a
coastal city. The idea is to have offshore, floating solar and wind
turbine farms exist as the city’s main source of energy. These wind
turbines will be concentrated in large wind farms located 10 miles
off the coast of the smart city. By setting the wind turbines offshore
in the water, there is a greater amount of wind energy that can be
produced. In addition, each wind turbine’s blades are made from
solar panels to allow for the production of wind and solar energy at
the same time. In the same concept that people get sunburnt on
their face from the sun reflecting off the water, the solar panels will
gather the sunrays that reflect off the water and the sunrays that
come directly from the sun. The wind turbines will be most effective
on windy days, or days that may not have high amounts of sun. The
solar works opposite; it will be most effective on days that are bright
and sunny. Either way, on any kind of day, energy will be collected.
This solar wind turbine idea impacts the problem of finding an
effective clean energy that can run an entire city. The solar wind
turbines are a smart technology that provides clean energy without
harming or greatly disturbing the global environment. No fossil
fuels or natural gas is needed and each solar wind turbine can be
produced using recycled and renewable resources. The solar wind
turbines will also impact the problem of climate change. The use of
solar wind turbines would decrease the need for fossil fuels in a
smart city. Therefore, solar wind turbines would help lower the
impact of climate change by offering an alternative way for cities to
produce their needed amounts of energy.
II.
The Initiative
Our vision is to live in a world where the majority of energy sources are of clean
energy. The purpose of our initiative is to contribute to the increase in clean
energy use along with the decrease in the use of fossil fuels. The team involved in
the business is made up of a group of undergraduate engineering students. Our
skills include advanced mathematical and scientific problem solving skills. We
have experience with design through projects within the SolidWorks computer
design program. We have knowledge of current environmental issues and
concerns. Connections that would be beneficial to the success of our proposal
would be environmental interest groups along with government funding
organizations. To protect the intellectual property, we plan to get a patent for our
idea and design. Our supply chain would go from the factory straight to the
offshore location. It is our goal to create building/construction materials needed in
the factory and assemble specific parts in the factory. Final assemblies will be
connected on the offshore site.
III.
Marketing & Sales
The proposed product is a offshore solar wind turbine farm. Solar panels will be
put onto the blades of the wind turbine and around it. These wind turbines will set
on a structure miles offshore from a coastal city and will have the ability to
produce clean energy through wind and solar means. This design is innovative in
that it uses both wind and solar power. Current technologies only use one type or
the other as an energy source. Our target group of consumers is the government of
medium to large cities that are within close proximity to large water sources. Our
selling point to consumers is to invest in the future where clean energy is the new
normal; this is the beginning of a clean energy technology revolution. Possible
competitors would be the companies that produce other clean energy technologies
as well as companies that rely on fossil fuel usage. Where we will rise above the
competitors is our easily altered design. Our design has the ability to be adjusted
in various environments. The marketing strategy for this proposal is to be as clear
as possible, and let the design and facts speak for themselves. The product will be
displayed as the ultimate clean energy source. It may be costly to deliver the
offshore turbine farms to their selected location, but the overall profit from the
energy production will outweigh the initial costs. The possible locations where the
design will flourish will be appealing to cities that are set near large water
supplies. The design will be promoted through the environmental interest groups
and cities that are seeking alternative energy sources.
IV.
Social Purpose
The proposed design will benefit the cities that choose clean/alternative energy
use over the use of fossil fuels. In the long run, the offshore turbines will provide
large amounts of clean energy that will be able to supply an entire city. Not only
will future generations benefit, but the environment will also benefit. As more
clean energy is used, the need for fossil fuels will decrease. Fossil fuels are
detrimental to the stability and safety of our environment and ecosystems. There
is a need for a social enterprise because it is important to ensure the development
of green technologies for the well being of people and the environment. Running
a social enterprise will allow us to have the maximum profits and distribution for
our product. The social impact will be measured by the amount of fossil fuels still
being used over a select period of time as well as pollution levels in our given
city. To measure social impact, energy companies can release records as to how
much energy is coming from a variety of sources. Also, local laboratories will be
able to aid in the measurement of pollution in a given area.
V.
Growth
Our submission has the potential to completely power cities through the clean
energy that it produces. With the wind and sun on its side, the offshore solar wind
turbines will be able to produce mass amounts of energy on a daily basis. The
growth will be measured by the amount of cities that purchase/install the offshore
turbine farms. Growth can also be measured by how much of the clean energy is
contributing to the total amount of energy used in a city.
VI.
Finance
Since 53% of the nation’s population lives in coastal areas, the demand for energy
is high. By placing wind turbines in offshore waters where wind blows harder and
more uniformly, we will be able to fuel the coastal cities more efficiently than
land turbines. The potential energy produced from wind is directly proportional to
the cube of wind speed. So a wind turbine at a site with an average wind speed of
16 mph would produce 50% more electricity than a site with the same turbine and
average wind speeds of 14 mph. So having offshore turbines where wind blows
more than 2mph faster than onshore turbines will create a high turnover rate of
energy produced.
1 GW of wind power will supply from 225,000 to 300,000 average U.S. homes
with power annually. In a July 2012 Technical Report, NREL estimates a gross
wind power resource of 4,223 GW off the coast of the United States. That is
roughly four times the generating capacity of the current U.S. electric grid. To
take advantage of the steadier winds, offshore turbines are also bigger than
onshore turbines and have an increased generation capacity. Offshore turbines
generally have nameplate capacities between 2 MW and 5 MW, with tower
heights greater than 200 feet and rotor diameters of 250 to 430 feet. The
maximum height of the structure, at the very tips of the blades, can easily
approach 500 feet, and turbines even larger than 5 MW are being designed and
tested for future use.
All of the power generated by the wind turbines needs to be transmitted to shore
and connected to the power grid. Each turbine is connected to an electric service
platform (ESP) by a power cable. The ESP is typically located somewhere within
the turbine array, and it serves as a common electrical collection point for all the
wind turbines and as a substation. After collecting the power from the wind
turbines, high voltage cables running from the ESP transmit the power to an
onshore substation, where the power is integrated into the grid. The cables used
for these projects are typically buried beneath the seabed, where they are safe
from damage caused by anchors or fishing gear and to reduce their exposure to
the marine environment. These types of cables are expensive, and are a major
capital cost to the developer. The amount of cable used depends on many factors,
including how far offshore the project is located, the spacing between turbines,
the presence of obstacles that require cables to be routed in certain directions, and
other considerations.
Established companies and government projects in the U.S. are already involved
in offshore wind energy prototypes and production. Production costs can be
mitigated by cooperating and working with companies such as “Deepwater
Wind,” and “Dominion Virginia Power’s Virginia Offshore Wind Technology
Advancement Project.” Government grants and foundations like the U.S.
Department of Energy’s will be main source of revenue and working in
conjunction with other companies for production.
VII.
Implementation Plan
There are many costs that go into the initial implementation of the 20 wind
turbines contained in our farm. The first step of any construction project is the
cost of raw materials and parts needed for construction of the turbines. Then, we
must look into the costs and personnel requirements that go into erecting and
constructing these turbines. Next, we must take into account the requirements for
the maintenances and repairs that go into each turbine, being that they are under
harsh conditions, surrounded by waves and hard winds. The deeper out you travel
off shore, the bigger the costs. Another thing that must be considered is the
operation costs. These could be quite high, being that energy and information
must travel from miles. The specific costs of each of these topics can vary,
depending on location, natural events, and amount of funding.
VIII.
Biography
Our team is very committed to our proposed idea. We all care very much about
the idea and are dedicated to making the best product possible. As previously
stated, we are a group of undergraduate engineering students enrolled at Penn
State University. Our skills include problem-solving skills in math, science, and
design. Each of us has experience with the computer design program titled
SolidWorks. We are capable of making our project successful through our use
creative and innovative ideas in a real world situation. The members of our team
include Julianne, Amanda, Annie, and Paul. Our educational background consists
of academic excellence. Each of us was in the top 5% of our graduating class in
high school. At Penn State, we currently are enrolled in a rigorous engineering
program.