R&D for Innovation in PV Solar

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					R&D for Innovation in PV Solar
Sustainability is Industry Mandate
• Solar is a Key Component in Addressing Global Climate Change
• Objective to Lower Worldwide Carbon Levels
• An integral part of the energy mix to enhance security of supply
• Must Evaluate Total Impact to the Environment
         – Supply, Manufacturing, Deployment, Operations, Recycling




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Company Overview
Strategic Objective
   Reduce the cost of solar electricity to a level competitive with conventional
   energy, enabling solar to become a sustainable mainstream source of energy.

    • Reduce the cost of solar modules by way
      of applying automated, fast ramp and
      high volume production of thin film
      technology
    • Migrate from subsidized markets to
      non-subsidized markets by leveraging
      economies of scale — become
      “subsidy independent”
    • Reduce dependence on scarce natural
      resources and curtail greenhouse gas
      emissions to improve our environment
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The solar PV market
Historical development of Global cumulative PV power installed




                                                                               Source: EPIA Global Market Outlook 2013
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Global annual PV market Outlook until 2013




                                                                               Source: EPIA Global Market Outlook 2013
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PV Industry’s “SET for 2020” Vision
• In 2008 EPIA launched a comprehensive European project “SET For 2020”, to
  establish the industry roadmap to realise its 2020 Vision:
         “to establish PV as a mainstream clean, sustainable and competitive energy
       technology providing up to 12% of the European electricity demand by 2020, up to
                                 20% in 2030 and 30% in 2050”
• Published in March 2009, the Report shows the benefits and implications that the
  12% PV target represents for European society: the PV industry, European utilities
  and regulators, ecosystem actors and end consumers
• Realising the Vision requires supportive public policy framework conditions are set
  by Member States
• The 12% goal can only be achieved if costs are substantially reduced (through
  technology progress, experience and economies of volume), if grid integration issues
  can be solved, if PV markets can be strongly and sustainably enhanced throughout
  Europe.

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THE SOLAR EUROPE INDUSTRY
INITIATIVE (SEII) – A RESEARCH PLAN
FOR 2020
WHAT IS THE SEII PLAN?
• A collective effort of the European PV community - leading representatives from
  Industry, the Research community and from the European and national PV
  associations represented through the European Photovoltaic Industry
  Association (EPIA) and the EU PV Technology Platform.
• Describes the PV sector strategy and the immediate actions to be taken in the
  period 2010-2012 to realise the PV solar energy goals for 2020 and beyond
• Above all, the Solar Europe Industry Initiative describes the strategic R&D
  components of “SET For 2020”, which are essential to enable rapid, large-scale
  deployment of PV at minimum cost and maximum benefit for society




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THE SOLAR EUROPE INDUSTRY INITIATIVE (SEII)

• SEII has 3 key strategic objectives:


         – SEII will bring PV to cost competitiveness in all market segments
           (residential, commercial, and industrial) by 2020 (cost reduction);
         – SEII will establish the conditions allowing high penetration of
           distributed PV electricity within the European electricity system
           (integration);
         – SEII will facilitate the implementation of large scale demonstration
           and deployment projects with a high added value for the European
           PV sector and society as a whole.


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THE SOLAR EUROPE INDUSTRY INITIATIVE (SEII)




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SUPPORTING EU ENERGY POLICY OBJECTIVES
Implementing the SEII will substantially support Europe’s Energy Policy objectives:


         –     increase security of energy supply;
         –     substantially cut CO2 emissions;
         –     increase European energy competitiveness;
         –     develop a robust European industry at the forefront of technical
               innovation, creating sustainable jobs in Europe along the value
               chain.




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HOW?? - SEII structure & priority areas
DISRUPTING BUSINESS AS USUAL THROUGH R&D




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SEII STRUCTURE AND PRIORITY AREAS
• The Solar Europe Industry Initiative (SEII) is based on the idea of “Creating an Energy Revolution
  through Accelerated Evolution” and moving beyond a business-as-usual scenario.
• Two major initiatives have been defined:
         – SEII 1: Cost Reduction
         – SEII 2: System integration
• As part of the R&D activities in the two sub-initiatives, demonstration projects will be carried
  out to assure a large and successful implementation of the results.
• Need to undertake education & training in Europe - qualified PV professionals are needed to
  help realise future technology and product roadmaps.
• Science and engineering also through promoting research and development activities that help
  provide a launch pad for excellent educational opportunities.
• Awareness & communication for the environmental, social, economical and technical benefits
  of PV need to be disseminated to the wider public, national and European policy-makers,
  utilities, architects, construction sector and other important stakeholders.
         – This needs ongoing public policy support and European wide and EU Member State level.


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SEII 1: COST REDUCTION – A Moore’s Law for PV?
SEII 1 Cost reduction objectives:
• To reduce the generation cost of PV electricity (€/kWh) by achieving a cost reduction of the technology
  itself (€/Watt of production) and by increasing the lifetime of PV systems. An accelerated cost
  reduction of the PV technology will be achieved by boosting innovation and economies of scale.
• To prepare the industry for multi-gigawatt production and to accelerate the process of “from labs to
  fabs to market”.
         –     New infrastructure: machinery and processes are needed to enable high-production levels and current and new
               materials need to be available in sufficient quantities and at low costs.
         –     In line with the recommendations of the Strategic Research Agenda of the European Photovoltaic Technology
               Platform, this step is to be achieved for wafer-based crystalline Si PV, thin-film technologies and concentrator PV.
Expected outcome:
• Faster and cheaper manufacturing processes for all PV technologies with a higher grade of automation
  while cell and module efficiencies will continue to increase.
• With lower material usage, increased efficiency, better economies of scale and longer lifetime, the cost
  of electricity will be significantly reduced, making PV competitive with other energy sources.




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          Cost Reductions Achieved Through Scale
                                                                                                        1,200 MW




                                                                                               716 MW




                                                                                                         $0.87
                                                                                  308 MW


                                                          100 MW
                                      10 MW   25 MW

                                       2004    2005           2006                    2007      2008      2009



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           Module Manufacturing Cost Reduction Roadmap
     $1.29/W
                             $0.93/W
                               100%     18-25%



                                                      4-6%


                                                                              4-6%
                                                                                                3-4%                    $0.52 - 0.63/W
                                                                                                              2%
                                                                                                                          56-68%



          Q1 07     Q1 09              Efficiency   Throughput           Spending              Low Cost   Plant Scale        2014
        Cost/Watt Cost/Watt                                                                    Location                   Cost/Watt
                                                                                                                            Target
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SOLAR ENERGY INDUSTRY INITIATIVE
Objectives of Demonstration Projects:
• The results of the activities implemented under the priority areas “Cost reduction”
  and “System integration” will be demonstrated under real conditions.
• Collaboration with other key stakeholders such as utilities, car manufactures and
  regulators – enabling the ecosystem
• Better understand the effect of a high penetration of PV systems on the grid.
  Especially important are the subjects of PV grid integration, PV building integration
  and interaction with other energy sources (such as wind power and other variable
  electricity production technologies).
Expected Outcome
• The implementation of this initiative will demonstrate the real value of PV
  technology and electricity, the potential to interact with other energy sources and
  the added value to network operators and the building sector.

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Leadership through innovation
DRIVERS OF GROWTH
• Lets Remember …. PV Solar energy is still a very young industry.
• Stimulation, collaboration and ongoing innovation are key to the long term
  sustainability and feasibility of this growth indutry
Key Drivers of Growth are:
         – Feed-In-Tariffs (FIT): rate payer helps finance the investment in an innovative
           technology
         – Project financing: e.g. EIB financing for project costs
         – Creating the necessary scale to stimulate growth
         – Aggressive cost roadmap to reduce module costs
         – Spurring public demand: promoting education and awareness




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THE ROLE OF THE EU COMMISSION AND MEMBER STATES
• Joined up policy thinking and policy making: ensure that there is consistency
  between energy policy, environmental policy and R&D policy
• Set support mechanisms (FITs) that take into account market growth and
  innovation roadmaps to get to sustainable markets
• Support technologies with superior environmental benefits and innovation
  potential: create incentives for private investment
• Stimulate eco-innovation through intellectual property rights protection
• Set aggressive targets for renewable energies for 2020 and beyond (e.g. 100%
  renewable energies by 2050)
• Encourage public awareness, education and action in favor of all renewable
  energies
• Ensure global markets remain open for renewable energies

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