Solar Semiconductor Harnessing New & Renewable Energy Technologies Challenges, Technology Status, Measures/Policies to encourage Internation Cooperation Hari Surapaneni Chief Executive Officer Solar Semiconductor
Contents 1. Introduction to Solar Semiconductor 2. Solar Photovotaic Industry Market Drivers 3. Challenges to lower investment costs for SPV 4. Technology Status in India 5. International Technology Collaboration 6. Policy Measures 7. Summary
Vision Corporate Vision and Mission To be a socially responsible, fiscally prudent, global energy player harnessing the greatest visible energy source available to mankind The Sun. Mission Employ vertical integration, economies of scale and R&D in new technologies to make QUALITY, CERTIFIED solar energy solutions affordable and price competitive.
Company Overview Overview Our Products & Services Incorporation Global Company founded in 2006 by Hari Surapaneni and Venkata Kode Projected revenue growth from $15M in FY 2008 to $140M in FY 2009E Current Family of mono and multi crystalline modules Summary Financials 200 MW of total module capacity by December 2008 405 MW of total module capacity by 2010 Cell manufacturing capacity of 240MW by 2010 scaling to 1GW by end of 2013 Roadmap 150 MW of thin film capacity by 2010 Kompally and FabCity near Hyderabad, India Manufacturing Locations 35,000 sq ft facility in Kompally 160,500 sq ft facility in FabCity coming online by December 2008 50 acre FabCity campus with the option to expand to 100 acres Solar cells Thin film Power Plants Employees 564 full-time employees as of September 2008 4
Strategy/Roadmap Value Chain SOLAR Semiconductor in the value chain Direct Channels MG Silicon Poly Silicon Silicon Wafers PV Cells PV Modules Thin Film 5
Market Drivers: Mid 70 s Mid 90 s Oil Embargo High Oil Prices Interest & Awareness in Solar Technology R&D for Solar Technology Crash in Oil Prices Solar Research Stalled In USA 6
Market Drivers: Mid 90 s Mid 00 s Incentives Japan (Mid 90 s) Germany( Early 2000 s) Large Scale Production Slow Decline in Prices 7
Market Drivers: 2005 2008 Energy Security Concerns Global warming Govt. Mandates Govt. Incentives Consumer Awareness Unprecedented Growth in Solar Shortage of key Raw materials Product Innovation Investments in Capacities Maintain Higher prices in Crystalline Silicon (Poly Silicon Prices shot up $40 > $ 400) Efficiency Improvements Economies of Scale 8 Thin Film Demand Slight changes in Govt. Initiatives
Market Evolution:2008 2012 Economic crisis Product Innovation Supply Expansion Supply led drastic reduction in Poly Pricing Product Innovations lead to further price reduction Financial Innovation spurs new business Faster progression toward grid Parity Further explosive growth 9
Challenges to lower investment costs Project financing costs in India (versus globally) are extremely high. Easy and unfettered access to cheap financing at global costs is needed. Innovative project financing needs to evolve akin to other parts of the world. Import duty relief for SPV components not yet manufactured in country. Economies to scale yet to develop Limited equipment manufacturing today Promote innovation through subsidies & tax credits 10
Technology Status in India Industry in Infancy in India Production of c Si module : < 200MW/yr in 2008 Production of c Si cells: < 100MW/yr in 2008 Production of Poly/Wafers: < 50MW/yr in 2008 Production of Thin Film modules: insignificant Companies that have been in business for a while are only now getting experience with economies of scale and the needed automation. Industry so far has dominantly depended on turnkey solutions with little technology of their own
Technology Status in India High Potential in terms of core competencies and skill sets. Same talent really involved in research and technology development worldwide
International Technology Collaboration The SPV industry has always relied on international collaboration for decades from the time of founding of Central Electronics Limited (CEL). Recent entrants including Solar Semiconductor as well has relied on International collaboration. The EoU and SEZ laws of GoI have been supportive of International collaboration to bring the technology in through partnerships SIPS is an added impetus for the Technology Collaboration 13
Policy Measures SIPS needs to be extended significantly as we are talking about expensive technology. Renewable Energy Credits trading should be facilitated Import duty exemption for components of SPV plants and related manufacturing equipment for some period of time (10 years) Access to international capital at internationally competitive rates. 14
Summary The SPV industry needs to play its role in bringing economies of scale, technology innovations and international collaborations. The Financial institutions and investors need to come in with innovative project financing needed at the current stage of development of SPV industry in India. Government policy should ensure unfettered access to cheap capital at international rates and promote innovative financing models. Import duty exemption on SPV components and manufacturing equipment for some period is essential to further international cooperation. 15
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