Onyx Service & Solutions Inc’s (OTCQB:ONYX) breakout business plan of competing internationally with costly diesel powered electricity is being bolstered by recent developments in another strong US ally – India. While most people would think about fast-growing developing countries which generate a lot of carbon emissions, they typically would think of China. After all, it’s the world’s largest carbon emitter. But with over a billion people, India is the third-biggest emitter — and with over a billion people, it has the potential to quickly overtake the US in the number two spot. However, India isn’t building coal-fired power stations at the same breakneck pace as China.
According to Renewable Energy World, solar produced electricity in India is now at 14 cents per kWh ( http://www.renewableenergyworld.com/rea/news/article/2011/12/solar-power-becomes-cheaper-than-diesel-in-india) versus diesel powered electricity at 25 cents per kWh. ONYX is currently competing in markets that average 34 cents or more per kWh for diesel powered electricity and some even near 50 cents per kWh.
“Due to the amount of positive international press coverage that ONYX’s business model has received, we have been invited to compete in India, as well as other Asian countries. Frankly, we are ramping up to facilitate the recent successes we already have in the Western Hemisphere. That’s not to say that we won’t be looking at other large markets in the future – especially those with such room to grow,” stated Malcolm Burleson, President of ONYX. “But if we have a choice to compete against 34 cents or more per kWh in Latin America versus 25 cents per kWh in India, I believe we are currently on the right track for the opportunity to reap much larger profit margins for the Company.”
ONYX management has purposely taken a different course than most other solar companies, deciding to forgo competing against coal-fired electricity producers or depending on government subsidies to make a profit. After detailed research of the worldwide markets for power, ONYX management identified sectors that relied on costly diesel generated electricity to focus on as its target market – due to the opportunity for greater profit margins. The Company has focused primarily on competing in Latin America and the Caribbean, but international recognition has led to recent invitations for the Company to apply their business model in India and the Philippines.