Case Studies

Assessment of Global Net Present Value (NPV) – Commercialization options for new Technology in Solar Energy

Assessment of Global Net Present Value (NPV) – Commercialization options for new Technology in Solar Energy

About the Client

Investors Controlled Innovative technology company in US

Client Problem

A team of scientists in Latin America developed a ground breaking technology in solar cells application. However, this technology was residing in the lab and the investor client was unsure about the commercialization roadmap

The Solution

  • pManifold  involved domain specialists and collaborated with Associate Partner Consultants to work on this engagement. Primary interviews were conducted with the client to better understand the technology; detailed secondary research carried out and talks with experts were held to comprehend the market and industry dynamics
  • Defined a problem statement pinpointing the root issue – roadmap to commercialize the product
  • Drew a solar technologies landscape and computed a Relative Cost Benefit Index of these technologies
    Researched on the global solar market and projected annual demand for next ten years in three different scenarios – Pessimistic, Median and Optimistic
  • Based on the differentiating factor, relative benefit and other externalities, estimated the uptake and adoption rate of client technologies. Synthesising the technology landscape, market scenario and other research inputs, forecasted the Global Average Selling Price (ASP) and cost of various solar technologies
  • Brainstormed several commercializing options and assessed them considering client’s competencies, strengths, resource availability and market externalities – resulting in ‘Out-licensing the technology’ option as most suitable
    Measured the incremental financial scenario for potential license buyers
  • Determined the Global Net Present Value (NPV) of the client technology and developed a financial model to calculate the indicative license fees under various scenarios
  • Assessed the risk, barriers to entry and economic benefits of the solution

Results / Benefit to Client

  • Comprehensive spreadsheet based automated tool with sensitivity analysis to change inputs and build multiple case scenarios.
    NPV of the technology and indicative licensing fees, along with several insights generated, served as conclusive guidance to the client for deal-making and negotiations.
  • The client, impressed by the quality of the deliverable and the manner in which it was done, is now one of our repeat clients
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