Hepburn Wind: diversifying revenue streams for a co-operative
What was the opportunity?
In 2018, Hepburn Wind, a renewable energy co-operative, approached TDi to help them assess options for diversifying their revenue streams. The co-operative’s management team had skillfully navigated the business through many years of uncertain government policy. When we met them, record energy prices and their skilled management had meant that they finally had some financial runway to rethink their longer-term strategy.
Tell us the ‘Nitty Gritty’ details…
TDi worked with the senior management and Board to understand their current business model, their vision for the future and the new revenue opportunities. We helped the them identify several strong opportunities, focusing on those that leveraged their existing business model and assets. We then spent several months testing these ideas through customer interviews and discussions with potential partners. These insights informed a financial analysis which compared the sets of options available and the return on investment.
Prior to TDi’s work which was supported by the State Governments Boost Your Business Grant, the co-operative was not able to resource the feasibility work to assist them in considering going beyond energy generation, in order to be holistic and strategic about the future of the co-operative. Our work gave the Board and the management team a clear sense of the financial risks and benefits of expanding their business beyond just energy and an agreed sequence for making decisions. The co-operative is currently establishing one of the business opportunities and will proceed with others, if they are successful at expanding their renewable energy supply further.