Energy entrepreneurship is the process of monetizing the energy production process and the end products as well. It may involve innovating new products, improving on current developments, reselling available products, and contributing to the global solutions to energy-related products.
The energy entrepreneur can decide to go the power plant way by setting up new power plants. The con to that decision is the amount of money required in sorting out the general costs of building a power plant.
The year 2021 is a year that people and other business entities have been recovering from the previous financial crisis. Therefore, the amount of money to use in venturing into newer opportunities is limited.
In this regard, there is a need to have affordable business opportunities. This article will go through several options available in the energy sector, focusing on those that are not capital intensive.
Here are five ways you can decide to invest your time and money towards energy entrepreneurship.
The filling station, or petrol pump, is an industry that has grown with the automotive industry for years now. The majority of manufactured vehicles in the world have petrol engines. A fact that has made this type of business commercially viable for years now.
The specific location for filling stations is within cities and small towns.
On the other hand, the gas station has been paired with food marts for ages, making a profitable business combination fed by traveler’s need to stopover, get some gas, and purchase a few necessities.
The gas station requires moderate capital to start and serves locations such as small towns, off-the-highway, and even cities.
A proper location, sound business strategy, and effective marketing ensure the business remains profitable.
The fantastic thing about renewable energy is the vast array of options to choose from while innovating energy production.
Innovation is an important aspect when it comes to generating business ideas that solve real-world challenges. With renewable energy, startups can focus on power consumption while having a moderate concern on sourcing the materials required in the production.
Renewable energy production could present a solution to climate change by reducing the carbon footprint.
Startups can figure out how to turn unwanted items such as bio waste into power, develop new ways of safely tapping into nature for energy consumption.
Gas and LPG cylinders are pieces of equipment used with gas cookers to provide the best cooking experience. Distributing LPG cylinders is a profitable business, fed by the constant demand for these cylinders. The capital required is lower compared to investing in the LPG production process.
Selling and reselling of gas cylinders requires a government-issued permit allowing for transportation and sale of the products.
The LPG business proved to be an essential part of our lives during the pandemic.
When dealing with gas cylinders, you can;
- Sell online while delivering the cylinders to customers.
- Sell out of a retail shop and have customers come to you.
- Sell out of a retail shop while also delivering to the customers.
Energy entrepreneurs may choose to have an indirect relationship with the process of energy production. They can decide to sell products to these power production companies.
Whether during construction, operation, maintenance, or expansion, factories require materials and equipment.
The most common equipment required by industries include;
- Industrial pipes
- Valves such as the butterfly valve by XHVAL, a china industrial valve company
- Construction materials supply. During building and renovations of power plants.
- Raw materials extraction and collection. The fuels used to produce energy.
- Other energy production equipment.
- Information Technology equipment. For example, servers, switches, routers, networking cables.
Supplying to industries is a profitable business in that these products get ordered in large volumes. However, once a factory is set up, it requires little work.
An individual or an entity may also choose to offer constant services for a power plant. It may include offering IT services such as annual server and network maintenance.
Large companies often go into deals with other entities in selling their products. A good example is car dealerships. These entities hence become retailers for their products.
In the energy production industry, getting such a deal might be capital intensive and almost impossible for small business entrepreneurs. In such a case, the entrepreneur can choose to buy and resell products from these companies at a profit.
A smart way of buying into this field is starting with products you can afford. These include solar products such as panels, lamps, solar mobile phone chargers.
If capital is not an issue for you, the power transmission and distribution business is for you.
Power distribution involves buying power supply from power plants and reselling to consumers of the same.
Power distribution is capital intensive due to the following reasons;
- Transmission and distribution costs
- Power production costs
- Power plant costs
- Infrastructure costs
Getting into the energy business requires capital but is not necessarily capital intensive. The most expensive way of getting into the industry is by setting up a power plant.
Power transmission and redistribution is another division of the energy industry that might prove capital intensive. However, since an entrepreneur does not need to be directly involved in the energy production process, it is a relatively affordable business opportunity.
Other affordable business opportunities include gas and filling stations, owning a renewable energy startup, gas distribution, selling energy products, and selling energy needs to energy companies.
The energy business is dependent on several market factors and requires proper research before diving deep. All the best.