MBO Interview Mr. Pedro Gomes Pereira, Mediterranean at Martifer Solar
MBO: The group Martifer Solar is currently present in more than twenty countries and is pursuing a worldwide expansion process. Could you introduce us to your company’s previous work and also to its plans for the future?
Mr. Pedro Gomes Pereira, Regional Manager for the Mediterranean at Martifer Solar
Biography: Born in Coimbra, Pedro Pereira was raised in Porto, where he graduated in Business Administration & Management at the Catholic University of Portugal. After completing his five-year degree in 1998 at the age of 23, he started working in Porto, as an IT consultant, for the company CPC-CG (currently Indra). In 2002 he decided to broaden his experience by joining an international group - SonaeIndústria - where he worked as Project Manager during the implementation (roll out) of a model of integrated supply chain in many premises of the group in Germany and France. After 7 years of professional experience, Pedro Pereira decided to interrupt his career to start a full-time MBA at the ESADE Business School in Barcelona. After the MBA, he embarked in a new experience in the Business Development area abroad, specifically in the renewable energy sector. He became part of Martifer Solar during the summer of 2007, a newly created company within Martifer group. Pedro Pereira was appointed as General Manager of Martifer Solar Srl, a company founded in Milan in January 2008 and dedicated to the development, construction, operation and maintenance of solar photovoltaic (PV) plants, which became operational in March of the same year. Since 2010, Pedro Pereira is the Managing Director for Italy and the Regional Manager for the Mediterranean Area, taking also part of the Board of Directors of the Greek and the Romanian subsidiaries. Since 2008, Pedro Pereira has participated in several PVsector conferences as speaker and moderator; hegaveseveral interviews to the media (TV, radio, newspapers and Internet) and has played an important role in lobbying not only through PV associations, but also directly with the media, mainly against the Renewable Energies regulatory framework changes approved by different Governments in the past years.
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Martifer Solar started up in 2006, but only became truly active in the PV market during the second half of 2007. It started to operate mainly in the Iberian market and completed about 38MW worth of installations in less than a year in the Spanish market. In 2008, it started to expand internationally and began working in Italy, Belgium and Greece. From that time onwards, the company also entered several other markets, mainly in Europe, but also some in America, Asia and Africa. All of this new business was based on its reputation of sound financial capability and on its track record in the renewable energy sector. At the present time, Martifer Solar has installed more than 200MW worldwide, and has accessed more than 20 countries spreading over four continents. In 2011 it was ranked as being in the top 10 worldwide, on the basis of its installed capacity. Such exponential growth, translated into operational revenue, was worth 293€ million in 2011, and represented more than 50% of the Martifer Group’s total turnover. Currently, the company’s goal is to consolidate its presence in most of the markets where it already has a presence, but it would also like to continue with its international expansion worldwide. The company is particularly interested in taking on new markets such as the Middle East, South America and Asia.
MBO: Why did you choose Montenegro recently as a destination? Our relations with Montenegro started as a result of an invitation by MIPA to be part of an international delegation of potential investors in Montenegro. We were pleased to see that great effort had been put into our visit and that the approach made to us by MIPA and by the Government was direct and straight forward. There was a clear aim to bring investment into the country in a variety of areas and this included the area of renewable energy. Encouraged by a very close relationship between the Government and potential foreign investors, we realized that it would be possible for us to play an important role in the market; namely that we would bring to the country our knowledge, whilst simultaneously adding significant value to the existing infrastructure in the energy field. At this moment we deem Montenegro to be a market with high potential and are fully committed to adding solar photovoltaic to the current energy-mix, under what we consider to be a win-win relationship for all involved parties. We definitely look forward to starting our first project in the country and are working closely with MIPA and with the Minister of Economy in order to achieve this goal in the near future.
MBO: What do you expect to gain from this market? In what way you plan to achieve your goals? Despite Montenegro’s small size, we have identified several advantages which may result in it becoming an international case study for solar energy production and for sustainability policies in the area of renewable energy. The number of sunny hours for the greatest part of Montenegro averages above 2000h/year. In coastal areas this figure reaches up to 2500h/year. Such high potential, in terms of solar radiation, is present and must be used. At this moment, there is also a political will to diversify the current mix of renewable energy types and to improve the current regulatory framework. Moving forward from the above favorable context, we believe that we could combine these conditions to become successful pioneers in bringing solar energy to Montenegro; not only based on our international experience in this field, but also on our commitment to transferring our knowledge to the country. This would enable Montenegro to continue developing this industry in a sustainable way in the future.
April 2012
MBO: How do you see the future of renewable energy? The Martifer Group’s experience in renewable energy started in the wind sector, namely with the manufacture of wind towers. This was based on the group’s experience and leadership in the steel construction industry. Later, the company entered the areas of solar, wave and bio-fuel energy. The company approach was industrial in nature, but also included other renewable energy types in the area of energy generation. Since 2010, the company has decided to focus on its purely industrial activities; on the production of metal constructions and on solar energy, which have become the two core business areas. In a nutshell, every country is aware of the urgent need to decrease the use of carbon-based energy sources. Several countries have already committed to specific quotas for renewable energy within their overall energy mix, and to reducing their levels of greenhouse gas emissions to decrease their energy consumption levels, as a result of the Kyoto Directive. The crisis that occurred in North Africa and in the Middle East, in Spring 2011, highlighted the danger of oil and gas dependency on other countries. Furthermore, the Fukushima nuclear accident led most countries to withdraw from their nuclear plans. All of this just reinforced the need to increase investment in renewable energy. While Western Europe has played an important role regarding its incentive schemes to date, it is now time for other countries to contribute in such a way that PV may finally attain a level of grid parity. If this were to be achieved, no further incentives would be required at a level of general distribution. Meanwhile, the current macro-economic context, along with the recent changes in the overall regulatory framework, has not helped the industry in terms of investment; within the industry, the perceived level of risk has actually increased. There is a clear trend for further price reductions in terms of demand. However, there is also pressure in the opposite direction regarding increases in supply. Within this context, several bankruptcies have occurred. Together with a high level of consolidation activity, these events have helped to restore the balance in the industry. For the strongest players, new business models will be required. These will have to go far beyond typical incentive schemes in order to succeed. It is on this basis that Martifer Solar proposes to enter Montenegro.
MBO: What are the benefits of solar energy? Why people should start to replace other viable energy sources with solar energy, and why should the Government provide incentives for such types of development? First of all, the sun may be used as more than just a heating source (solar thermal), but also as an electricity source (solar PV).This is the main focus of our company. The sun is actually one of the most inexorable and promising available resources. Unlike other renewable sources, PV is one of the most desirable ways of generating energy; it is easily accessible at a consumer level, is easy to predict and it can be made to mirror higher levels of usage at peak times. In addition to that, it is not an invasive type of technology as it can be implemented in total harmony with the environment, and does not produce any noise. The main problem of PV is its cost level. Therefore, the need for incentives are paramount in order to scale down the effect of its high costs.
This should smooth the way to reaching grid parity, something which is, at present, almost attainable in some countries where both electricity prices and solar radiation costs are high. In fact, thanks to the incentive schemes of some countries, mainly in Europe, reductions in system prices have been as impressive as around 75% during the last four years! Whilst providing incentives for the development of solar energy, governments are actually contributing to the diversification of their energy mix. They are also simultaneously increasing their autonomy of energy production, based on renewable energy sources; thus they are substituting carbon-based sources, which are often imported, with renewable energy. This, in turn, allows them to meet their renewable energy quotas, whilst reducing their levels of fossil fuel consumption and decreasing their levels of greenhouse gas emissions. Moreover, such incentives allow the development of a healthy industry, create employment and increase the turnover of many related activities in the long run. In fact, an important part of such incentives concerns the state in terms of taxes paid through the whole supply chain. All in all, considering all of the economic, social and environmental benefits which are very difficult to quantify, the differential effect could be virtually zero. That is, the whole investment put into supporting solar incentives could well be completely paid back.
MBO: What are the main advantages of your company? Why would someone choose Martifer Solar over other similar companies? FMartifer Solar is involved in the development, construction, operation and maintenance of PV plants, as well as in the manufacture and distribution of PV components. This includes the production of modules in its cutting edge production line, tracking systems, fixing structures, and parking decks, amongst others various items. Such an integrated approach allows the company to provide 360Âş solutions to the market in the PV field. It has a great deal of experience in the solar sector and belongs to a listed group with more than 3,000 employees who focus on metallic constructions and solar energy. At the moment, Martifer Solar is present in 21 countries and has installed more than 200 MW worldwide. Its work includes all kinds of different types of technology and installations. Martifer Solar is flexible, innovative and fast. It has a sound balance sheet which provides security both to investors and financiers. Its broad experience in the PV sector allows it to provide custom-made solutions for clients at competitive prices combined with high quality standards. Finally, the company also has a social conscience which results in it leaving a strong footprint wherever it works; namely it brings in clean energy, transfers its own knowledge to others and provides long term employment opportunities to local communities whenever possible.
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