Renewable Energy in Australia - Essay Example

RENEWABLE ENERGY IN AUSTRALIA By Course Instructor Institution Date of Submission Energy is an important resource that influences the economy of the country. The recent problem caused by global warming has made companies rethink the sources of energy that is used locally. The use of renewable energy has been the target of dealing with the pollution problem. Countries have been under pressure to reduce the use of petroleum products because they accelerate pollution and global warming. Australia has not been left behind in the implementation of projects that will ensure that renewable energy is availed to the people. If the plans are successful, then people will not only benefit from a clean environment but will also profit from reduced costs of energy. Australia has identified two major sources of renewable source of energy that are wind and solar energy (Kurokawa 2007). The urge to provide renewable energy to the people has created business opportunities in various countries, one of which is Australia. However, the power that government has will certainly influence the growth of renewable energy industry in the country. This paper compares and contrasts how power relations will influence the growth of renewable energy sector in Australia. Report The CEO of a small business enterprise has several options to utilize in relation to the business opportunity in Australia. The first option is starting a firm in Australia to engage in the production of raw materials that will be required in the use of renewable energy. An example is the manufacture of solar panels required to tap the solar energy. The Australian government has the power of influencing whether such a firm will be acceptable in their country. The tax charged on the profits from the company and other regulations will determine whether this is achieved. The advantage of this pan is that it can save on costs and easily meet the demands of the customers in the country. However, it requires huge capital to set up. The small business can consider exporting the required products to Australia to meet the demand for the products required in the implementation of renewable energy projects. This may not require setting up a new plant in Australia, but will involve supplying the products from already existing firms. The small business may import the products and avail them to the people and government agencies. The government can influence the success of the business by the tax charged on such projects. As a way of encouraging the use of the products locally, the best strategy is to charge less tax or no tax on the items (Kurokawa 2007). This will make it cheaper to buy the gadgets required in the supply of the renewable energy. This strategy will require less capital to start, and the risks associated with it are less. The third option is to solicit a contract with the government so as to start a firm that will generate and supply the renewable energy to the people in Australia. The advantage of this is that the returns can be very high if the contract is secured, and the risks associated with it are less. The challenge is that it requires a lot of capital to implement. It will also require experience and trust in the issue to convince the government. Since the government is committed to availing renewable source of energy to the people, this can be adopted as one of the projects. However, the decision lies with the government officers who have the power to influence who gets the contract. The best option for a small business entity is to start exporting the products to the people in Australia. If the business is located in Australia, it can buy the products locally or from foreign countries and sell them locally. The government will be interested in ensuring competition in the supply of the products so as to reduce the prices (David 2012). It is likely to remove trade barriers such as tax on the products to make them cheaper for the locals. The power by the government will be used to ensure that such businesses are easy to establish. The advantage of this option is that less capital is required will be less as compare to the other options. Just in case the business fails, the products can be diverted to other countries. Even if the government intervenes in the provision of the products, the business will still continue because the people need the inputs every day. There is a need to replace old solar systems as well as install new ones, and this is an assurance that the demand for the products will never decrease. In this business, the CEO will not be required to negotiate with the government agents to establish a business as is the case with the other projects. The strategy of managing the business will be the basis of success. In this case, the environment in Australia gives an assurance that the business will thrive. Analytical essay Australia is known to be a Liberal democracy where few privileged individuals are close to the government. This makes the third recommended option less preferred considering that the class close to the government is likely to secure a contract with the government. The government exercises the power of deciding who gets a contract. Considering that the business is small currently and has no links with the government, this option is not easy to undertake. At the same time, the government has the power to start an organization that is to engage in the provision of the renewable energy to the people. When this happens, then the other business organizations become of no importance. This shows that the government has great power in influencing who is to start the plant that is to supply renewable energy to the people hence the third option is not recommendable. The first recommended option involves setting up a plant in Australia to ensure that all the equipments related to the use of renewable energy are produced and availed to the people. According to Batley & Larbi (2004), the government has the power to take over weak businesses that they think has importance to the society. Such businesses may be international or local. Since a plant that produces renewable energy materials is crucial and the business organization involved is small, there is the risk of the government using its powers to take over such a plant and the small business expanding to the renewable energy sector may not benefit a lot from its investment. This makes this recommendation less attractive. The argument in the book by Savigny & Marsden (2011) is that the power that lies in the government ends up benefiting a few individuals. There is the need of ensuring that the selected option is competitive in nature such that the government has less say in determining who succeeds. By establishing a business that sells products to the customers directly, the government has no say in influencing who succeeds and this is why this option is more preferred for the small business. Though the other ventures are more attractive and have higher returns, the risks are very high, and the government has great power in influencing the success of the business and this is why they should be ignored. The government will be interested in achieving clean energy in Australia and will have to come up with various types of incentives to ensure that the people prefer the use of energy. It is obvious that the citizens will find it expensive to replace their new system of energy to a new one. However, many will realize that the monthly cost of their energy will reduce significantly, and this is the gives assurance that the projects will be accepted by the public easily. However, the government will likely ensure that the costs of having the systems in place are low. This is through reducing the cost of inputs that the people require to have the sources of energy in place (Jordan-Korte 2011). At the same time, the government will be compelled to ensure low price of appliances that are compatible with the new sources of energy. The use of subsidies will be one of the strategies that the Australian government will use. This will involve compensating the suppliers of the various appliances so that they can lower the price of their inputs. This will encourage more customers to have the appliances in their homes. On the other hand, the demand for these products will increase leading to better profits. Removal of tax on these products will be another strategy that can be used to reduce the prices. When the tax on the products is eliminated, the prices will reduce, and more customers will demand the products. The businesses will also benefit from reduced cost of doing business, and this will improve the profit margin (Great Britain 2008). The government also has the power of providing incentives to the businesses selling the products to the people. The licenses can be processed within a short period and at a lower cost. This means that the establishment of the business will be easy. Though the competition is likely to be high, the business will be easy to start and manage and will be very profitable with appropriate management. Australia and UK Compared To gain a better understanding of how the government can be powerful in influencing business activities relating to renewable energy, it is prudent to compare Australia and UK. United Kingdom has a variety of incentives to those using solar energy, and the businessmen have also benefited from the incentives (Great Britain 2007). One of the major benefits is exemption from VAT on products to be used in the supply of the energy. This has made it cheaper to buy the products and install them in households. The low price of products has stimulated demand in the country and business people, and companies have benefited from the high demand. The cost of operating business is also lowered by the exemption from VAT because there is no time wasted in filing the returns. Another plan by the United Kingdom government is that households that use and supply energy to the neighbors are compensated o monthly basis. That new product is a strategy that is adopted to ensure that households have the initiative of ensuring that clean energy is used in their households and the neighborhoods (Great Britain 2008). Since the people who are not able to install systems in their homes have their neighbors supplying the energy, the demand for the electronic appliances has been increasing in UK, and this has benefited the business people most. To supply energy to the neighborhoods means demand for the necessary input in the activity and after the installation, appliances to be used in the homesteads are bought from business people who benefit further. From the analysis of the two countries, the strategies applied in ensuring that people get renewable energy is different. However, some of the strategies used are common and include the reduced tax rates on the products used with the renewable energy. In both cases, the powers that the government has have been used to create business opportunities for companies willing to enter the renewable energy market. What is required is an immediate response to the opportunities and reap the much potential profits from the industry. However, this should be done with caution to ensure that risks are avoided. The business managers should be aware of the incentives in place and how to profit from them (Great Britain 2008). The assurance is that the businesses related to renewable energy will be sustainable because many countries, including Australia are committed to ensuring that pollution levels reduce and the costs of supplying energy to the people is reduced. People should thus be courageous to develop business ideas to profit from this new venture. After analysis, it is evident that for small businesses, the best potential idea is to supply appliances and other items required in the installation and use of the renewable energy. The following table summarizes the differences and similarities in the strategies that UK and Australian governments are using to encourage the use of renewable energy. Australia United Kingdom Reduced VAT on renewable energy appliances Reduced VAT on renewable energy appliances Establishment of renewable energy plants Establishment of renewable energy plants Encourage people to supply renewable energy to their neighbors Does not encourage supply of energy by neighbors Reward those who use and supply renewable energy to their neighbors This strategy is absent Conclusion The analysis reveals that the business has great control in influencing the growth of renewable energy. The growth of renewable energy presents an opportunity to entrepreneurs in that new product will be needed by the citizens. The incentives and the control by the government will to a great extent influence whether establishing a business is a reasonable idea. First, the government must be committed to ensuring that renewable energy is availed in the country. If this is not the case, then there will be no motivation to provide the various incentives. The Australian government is committed to availing renewable energy to the people. It is thus likely to provide incentives to the business organization to support the availability of the renewable energy to the people. One of the best business opportunities that can be exploited is the supply of appliances and other materials that can be used in the supply and use of solar and wind energy. With low taxes and other incentives, there are chances that such businesses will reap much profit (Jordan-Korte 2011). Courageous managers should be willing to risk funds into the business and benefit from the business opportunities. Reference list Al-Hakim, L. 2007. Global e-government: Theory, applications and benchmarking. Hershey [u.a.: Idea Group Publ. Batley, R., & Larbi, G. A. (2004). The changing role of government: The reform of public services in developing countries. Houndmills, Basingstoke: Palgrave Macmillan. Bell, S., & Wanna, J. 1992. Business-government relations in Australia. 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