This work is relevant for Creative Strategy because it demonstrates how objectives were defined and met to solve a major industry threat.

Despite the challenge faced by the private hydropower plants, the strategic thinking and creativity allowed the business to thrive again in a new energy-intensive market with a sustainable solution. A great fit for its needs and challenges.

Creative strategy implementation was successful because besides overcoming the Company-specific challenges, the positive impact even transcended to influence the government’s approach to the issue.

Costa Rica has run on more than 98% clean energy over seven consecutive years, one of the highest rates of renewable energy generation in the world. Both private and public sectors actively engage in energy generation, being the hydroelectric energy the main source of energy in the country.

However, there's a monopoly on electricity distribution in Costa Rica, and only the Costa Rican Institute of Electricity (ICE) is authorized to sell or export it. In 2020, the ICE began canceling contracts from private generators due to a surplus power supply; therefore, private producers could no longer sell their green energy to anyone else. By law. That was the big irony that initially trigger the much-needed strategy transformation, in which the main objective was to find a new profitable use for 100% of its energy production considering the current electricity market regulations, so they wouldn’t go bankrupt.

While the world was facing a pandemic, Eduardo Kopper, a private energy generator, had to face the most challenging situation. His Company’s energy contracts were also canceled. He could no longer sell electricity. As a consequence, he almost had to shut down his hydroelectric power plants in the mountains of Costa Rica. Not only Eduardo Kopper’s business was at risk, but the whole of Costa Rica's private renewable energy industry. Despite rising global clean energy demand, Costa Rican private producers could no longer sell theirs.

With unique resources, assets, and team capabilities on their side, the creative strategy was the key to solving the problem. Whenever there is an excess supply you need to find a market that is facing shortages. With that in mind, a thorough analysis of possible industries that might be suitable targets was performed.

The planning threw a few questions: How to overcome the monopoly and use the -at that moment- wasted electricity? Who needs cheap clean energy? How to diversify customers? How fast is the decision-making to start working? What new service can be created?

By seeking those answers, the eureka moment finally came. The cryptocurrency mining market’s rapid growth was being challenged by its energy-intensive by design nature. Bitcoin alone adds 40 million tons of carbon dioxide a year and consumes more electricity than Argentina.

The Company completed an overhaul of the business model to transform the hydroelectric plant into one of the world's first green crypto mining centers powered exclusively by water. Mining crypto is expensive, not only for the hardware but for the energy costs. So, the Company used its cost advantage to start renting affordable spaces in custom containers to mine crypto and include the clean energy cost as part of the lease fee. Just what today’s environmentally conscious crypto miners are looking for.

This strategy not only saved the Company, but its proven scalability, provides the opportunity to use the energy surplus to potentially position Costa Rica as one of the top green crypto mining countries in the world.

Data Center CR outsmarted the monopoly, and as of today, 3 private hydropower plants are fully operating in the crypto mining business.

After a very successful PR launch campaign, Data Center CR story was featured on more than 50 websites and news media such as Reuters, Forbes, DW, Vice, El País, among many others.

During the PR campaign, the first hydroelectric plant for crypto mining reached 200 new customers with a minimum investment of $15,000 each. The new business model also allowed the Company to grow its profit margin by 200% and as a consequence, given that it evolved from selling a commodity to selling a tech service, Company’s valuation is now 30x its initial investment.

Data Center CR’s leader Eduardo Kopper is now advising the government about blockchain and there are now 2 crypto-related bills in the Costa Rican Congress.

In general, disruption occurs when conventional value drivers of a certain market experience drastic change. For the private hydroelectric plants of Costa Rica, it was their most important value driver, their one and only client, the government. In addition, even if they wanted, they couldn’t keep selling their product as usual. Therefore, significant innovation was imminent and this powerful force drove major change. A hydropower plant in Costa Rica completed an overhaul of its business model and evolved from selling a commodity product (energy) to selling a tech service (leasing spaces in custom containers to mine cryptocurrencies), and from selling to a single client to serving a variety of clients, and even having the possibility of marketing its new service anywhere in the world.