Feasibility Study for Clean Energy Backup Power in Brazil, Argentina and Mexico

The Client provides clean energy backup power products enabling optimized power systems for a range of applications. Products deliver incomparable performance, durability and versatility. Clean energy systems can provide backup power solutions for wireless telecommunication (telco) providers, and other vertical industries, delivering solid reliability at an attractive lifecycle cost. The Client offers a comprehensive portfolio of clean energy generation products for backup – as well as continuous power – applications. The Client provides complete, proven solutions that can be implemented rapidly and easily, providing end-to-end support for a range of application requirements. The Client is active in many regions of the world and has two years’ experience in Mexico. Brazil and Argentina present new opportunities that the Client has not fully explored. The Client is considering entering Brazil and Mexico; in addition, the Client would like to further explore potential new opportunities in Mexico. By understanding the competitive situation and contextual conditions in Mexico, Brazil, and Argentina, the company can better evaluate if it should enter or remain (as in the case for Mexico) in these markets. Major growth in mobile usage in Latin America is driving telecommunication service providers to invest in infrastructure in order to meet increased demand for smartphones and tablets. Telecom providers, however, are not necessarily the ones investing in infrastructure but are partnering with third party providers to build and maintain towers and base stations. In addition, new regulation in Brazil, Argentina and Mexico are changing the way telecom providers utilize this infrastructure, forcing many to consider a shared or co-located model for use of tower space and base station equipment, including backup power solutions. Despite its very poor macroeconomic climate, Argentina appears to be the most attractive market, driven by government regulation and extremely high mobile penetration, for the Client to enter as a provider of clean energy backup power. In contrast, Mexico and the developed areas of Brazil do not have drivers for adoption of extended back-up power. Where demand for extended back-up products proves real, the use of a local distributor is recommended, and if traction is gained, a local sales agent further recommended to the Client