The markets of European countries present on the EPEX spot exchange were analysed to determine their viability. Specific focus was given to the three biggest participants which are Germany, United Kingdom and France.
An analysis of the current trading volumes on these markets was performed, together with research on the size of generator and supplier markets. Specific focus was put on the middle-sized market segment.
Countries participating on other European exchanges were also analysed in terms of viability. Furthermore, Australian and U.S. exchanges were investigated as an option for future expansion.
Using information obtained by the feasibility study, we were able to determine the go-to-market strategy. We will first enter the United Kingdom market, due to both the size of the market and our business presence there. Before the analysis, the plan was to enter the French market in the second year after completion of AIx, however the analysis revealed that Germany is a better market to enter as the second. The EPEX intraday market for Germany is the biggest in Europe and in addition, due to less centralizatized electricity ecosystem, there is a significant share of middle-sized renewable generators. France will be entered in the third year. The electricity market in France is more centralized, since over 60% of electricity is produced by nuclear power stations operated and owned by EDF. There is also a relatively smaller number of middle-sized companies operating in the electricity business. However, France is still the second biggest generator and supplier of electricity in the EU and as such has a huge market potential.
Based on the market analysis and the customer base that was identified in this report, a direct sales approach was deemed to be the most appropriate. Sales channel building strategy was identified and the internal structure of the sales department was defined. Benefits from collaboration with power exchanges were also investigated.
Implementation of the M7 API client was completed. This includes qualification testing demanded by the exchange which was performed successfully. Moreover, research on the API capabilities of the other exchanges was performed.
A detailed financial strategy analysis was performed, both for the period before the completion of the product (2019-2021) and for the three year period after the completion of the product (2021-2023). The projected revenue was calculated, based on assumptions that are in line with the market analysis. Operating costs were forecasted on a monthly basis, both for the personnel related and other expenses. Cash flow calculation was developed in order to determine if additional funding is required in the months after product launch. The preparation of a pitch deck presentation was completed.
The financial analysis allowed us to align the projected personnel and other expenses with the estimated revenue. We were able to determine the amount of trading required through AIx to be profitable. Furthermore the biggest costs were analysed.
The management and branding strategy was identified, together with the risk management related to a fast growing team.
