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19 dez 2022

We've been building positive energy for twenty years!

We've been building positive energy for twenty years! 1

The situational context

 

Renewable energy began to have more expression on the world scene since the year 2000. This growth happened, on the one hand, because the production of electricity was (and is) responsible for most of the anthropogenic emissions of greenhouse gases in the world, along with the growing “favorable image” of renewable energies as an instrument to mitigate climate change and reduce the negative effects of energy production. At the beginning of the millennium, governments themselves are devising new energy strategies that contemplate climate action, agreeing on new regulatory frameworks and new goals, with the aim of mitigating the greenhouse effect. Consequently, the energy industry has thus found itself at the beginning of an enormous process of transformation.

 

All this transformation has triggered real challenges for the business community, namely for construction companies, forcing them to evolve from construction service providers to providers of renewable services and, thus, to develop new value propositions to remain competitive in the new world energy market.

 

It is in this context that CJR Renewables was born - a new business area of the CJR Group - differing in positioning and orientation towards a new customer typology.

 

The beginning

 

CJR Renewables was inaugurated, at the end of 2002, with the construction of accesses to a Portuguese wind farm - the Alto do Talefe Wind Farm - for the GE customer. The invitation came from a partner company in central Portugal which, as it only had electrical and mechanical skills, needed a partner for civil construction. Essentially, in this first wind farm, CJR Renewables developed earthworks and construction of accesses and cable trenches.

 

Other projects limited to the national territory followed, always in the area of civil construction, and, in 2005, the first internationalization took place.

 

The first foreign market (export by invitation)

 

The process of internationalization of CJR Renewables began in the Dominican Republic. In mid-2004, the company participated in a contest, organized by Vestas, for the construction of access to the Punta Cana wind farm, located in the Dominican Republic. The invitation was for a very limited scope of work but the company, due to the desire to take the chance of internationalization, presented a highly competitive proposal, from the point of view of price and, thus, went to carry out its first project in international territory.

 

Despite its situation in the domestic market being favorable, in the short term (in 2005, the date of its first international project, the company was carrying out the construction of eight wind farms in Portugal, for five different customers), as the company had the resources and the desired skills in the renewable energy sector (and it received a lot of external market influences from its international clients), the extension of its current activities to external markets seemed evident. The distance between Portugal and the Dominican Republic was more than 6,200 km, but the company prioritized the learning opportunity in the face of obvious obstacles. Thus, the market was seen as an extension of the domestic market, representing a learning opportunity for future internationalization needs.

 

Project name

Scope

Client

Nr. WTG

Installed power

Punta Cana Wind Farm

Civil works

VESTAS

5 UN –  VESTAS 1,65 MW

8,25 MW

 

 

The second foreign market (active export)

 

Two years later, in 2007, CJR Renewables achieved the construction of the second project outside Portugal, in Spain (physical and psychological proximity market), building the accesses , cable trenches and foundations of the Jerez de la Frontera Wind Farm for the new Suzlon client.

 

At this stage, he felt he had the resources (economic and human) and skills to seize foreign opportunities and, at the same time, he felt that, in order to reduce the degree of uncertainty and associated risks inherent in internationalization processes, the ideal would be to experience a neighboring environment. Factors such as language, culture and the closest geography fit perfectly into the concept of “psychological distance”, which helped CJR Renewables to take the risk.

 

As in other European countries, the Spanish market, at the time, had a very attractive pipeline of projects, providing for a huge investment in the construction of wind farms. CJR Renewables' service met the customers' needs, as it was positioned correctly, and the company in the market did not have much competition (the market was not yet mature).

 

Thus, this was an attractive market, with few associated risks. From an administrative point of view, Portugal and Spain belong to the same regional trading bloc and use a common currency, which was equally positive for the selection. 

 

Project name

Scope

Client

Nr. WTG

Installed power

Jerez de La  Frontera

Trabalhos Civis

Suzlon

7 un - 2,1MW

14.7 MW

 

 

Internationalization through subsidiaries (own investment)

 

Two years after carrying out its second internationalization, the company decided to invest in a process of opening branches, in 2008, in Poland, more specifically in Krakow and, two years later, in Bucharest, Romania, being able, in the same year of entry, to carry out projects in these markets.

 

At this stage, the company already had some experience and international knowledge and had even more economic and human resources from its successful internationalization and, given the context, decided to increase its degree of commitment and invested, for the first time, in market infiltration through subsidiaries, that is, through own investment.

 

Thus, it selected the Polish and Romanian markets, mainly due to the potential of the market: CJR Renewables perceived dynamism and opportunism, due to the accession of these two countries to the EU - Poland and Romania - being EU members since 2004 and 2007, respectively, and as a result, they began to benefit from the same conditions of harmonization in terms of market relationships, thus becoming very attractive markets with great opportunities (growth rates of wind energy with great potential). CJR Renewables' accumulated know-how and experience had room to add value and boost experience with companies and public bodies in these two markets.

 

Thus, despite the risk, the company made a quick entry into these markets, alone, through the investment of commitment and resources, from the leasing of offices, hiring of elements of local nationality, etc…

 

 

Project name

Country

Scope

Client

Nr. WTG

Installed power

Leki Dukielskie

Poland

Civil Works

Martifer

5 UN

10  MW

Cernavoda

Romania

Civil Works and High Voltage Underground Line

Isastur

 

   

 

Conquering Latin America

 

In 2010, CJR Renewables internationalizes to a new continent - Central America - more specifically to Jamaica, with the Wigton II project, but without opening any branch and, in 2013, it opens in the South American market, with the opening of its first office in Chile, a new key geography where, in the same year, it obtains the construction of its biggest project to date: the Tal Tal Wind Farm.

 

This market was considered strategic from the point of view of growth for the company and economic return, given that it was a market that was not very mature and not very competitive, even becoming the company's biggest market: since 2013, the company has been building an average of 4 projects per year in Chile alone.

 

The exploration of new Latin American geographies quickly followed, with a special focus on Colombia (entry year 2017) and Peru (entry year 2020), where the company is active from an operational point of view and where has its own branches. Also, in these two geographies, it has carried out the construction of large-scale projects that jointly amount to 700 MW. 

 

 

Project name

Country

Scope

Client

Nr. WTG

Installed power

Wigton II

Jamaica

Balance of Plant (BoP) / EPC

Vestas

9 un

18  MW

Taltal

Chile

Balance of Plant (BoP)

Enel Green Power

33 UN

99  MW

Wayra I

Peru

Engineering Procurement and Construction (EPC)

Enel Green Power

42  UN

132,3 MW

Windpeshi

Colombia

Balance of Plant (BoP)

Enel Green Power

41  UN

200 MW

 

 

The successive addition of value in the supply chain

 

CJR Renewables has become, “park before park”, an unavoidable business partner for every customer it has come across. One of the sources of this growth was the expansion of new activities in the company's supply chain from the perspective of Customer Centricity: CJR Renewables placed the interests of its customers at the center of all the organization's actions, and, year after year, it was expanding its capacity to generate key resources for the success of its client, and consequently, its own. Thus, year after year, it increased its responsibility in each project, in response to the needs it found in its customers.

 

In this context, in 2008 and 2011, respectively, it integrated new areas, namely the electrical-mechanical areas and the activity of installing wind turbines and, in 2015, it entered the solar photovoltaic business area. More recently, in a clear eagerness to continue growth, CJR Renewables also invested in the “Service” area.

 

As of today, CJR Renewables offers five operational areas, namely BoP/Wind, installation of wind turbines, Solar PV, Power & Grid and Service.

 

The transformation to a multinational company

 

Since the beginning of its internationalization, CJR Renewables has understood that its practices and policies are aimed at multinationality. This means that, for CJR Renewables, knowledge sharing and standardization of practices are essential to its success. All its markets, even with all their differences, are one.

 

The company's strategy was (and still is) having the ability to learn in different locations, recombining and producing new knowledge, internally, to be later disseminated, with freedom to adapt and to act at the local level. This practice has ensured, on the one hand, that CJR Renewables' structures are sufficiently centralized to allow for global consistency, while being flexible enough to allow for local adaptation and learning.

 

In these twenty years, the path for CJR Renewables to be a multinational company has been long. There was a need to invest in the digitization of processes, organize the structure according to new markets and customers and implement systems that would allow the execution of the company's business model worldwide; examples of this are Kaizen, SAP, OnWay, System Way, etc.

 

CJR Renewables (today) in numbers

 

To date, CJR Renewables has successfully completed 550 projects that currently generate more than 11,000 MW of sustainable energy.

 

Since 2008, twelve years of deep geographic diversification have followed, with a presence in 25 countries (an average of 2 countries per year) and three continents, with its operations taking place (and happening) mainly in Europe and Latin America. As of today, in addition to the offices in Portugal (Corporate headquarters), CJR Renewables has branches in Sweden, Poland, Chile, Peru, Colombia and the USA (Texas), where it envisions the possibility of also operating in an economy of scale.

 

Today, in total, CJR Renewables has just over 60 customers, and it is important to highlight the most important customers by area of activity:

 

Area of Activity

Clients 

Power & Grid

EDP Renewables - 7 Projects;

Enel Green Power - 14  Projects ;                 

IberWind - 6  Projects ;

Mainstream - 4  Projects ;

Vestas - 7  Projects ;

Solar PV

EDP Renewables – 202 MW; 1  Project

Enel Green Power - 142 MW;  2  Projects

Iberdrola - 40,8 MW;  2  Projects

Green Venture – 40 MW;  1  Projects

Wind/BoP

Enel Green Power - 958 MW;   7   Projects

Vestas - 507,15 MW;   15  Projects

EDP Renewables - 396,5 MW;   19  Projects

WPD - 309 MW; 2  Projects

Mainstream   - 299 MW.   2  Projects

WTG Installation

GE - 822 MW;    33  Projects

Vestas - 3060 MW; 145  Projects

Nordex – 426 MW; 13  Projects

 

 

CJR Renewables' main strategic focuses today

 

 

 

Quality

 

Quality is critical to CJR Renewables; thus, it employs a range of methodologies and strategic, tactical and operational management programs, which ensure the same quality worldwide (such as Kaizen, SAP, etc…)

 

 

Geographic location

 

Geographic availability and worldwide coverage (and in-depth knowledge of different cultures, policies and legal frameworks in place, etc…) are essential for the company to differentiate itself from the competition.

 

 

Innovation

 

Optimizations and innovations in customer projects are a key purchasing and positioning factor.

 

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