Solar Mi 22 Dec 08 (2)
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Market Intelligence Report SOLAR December 22, 2008
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Title
Date
Link
Category
Postcrescent.com
Town of Menasha installation to be Valley largest solar energy system
21 Dec, 2008
http://tinyurl.com/a9cxo9
Industry News
George Dearborn believes the town will become a renewable energy leader by example with the installation of a large solar system next spring. Dearborn, the town's community development director, said last week's action by the Town Board to award a $240,453 contract to Energize LLC, Winneconne, will give the town three large solar installations on the west side. Energize owner Jim Funk said the 25.2-kilowatt system would be the largest in the Fox Cities and one of the largest solar installations north of Milwaukee. The town's net cost of groundmounted solar panels, to be installed on an elevated ridge just west of the town municipal complex at 2000 Municipal Drive, is $95,588. Two grants, $95,588 from Wisconsin Energy and a $49,277 Focus on Energy incentive reduced the cost for the town, which plans to borrow for its share of the project. Reuters
Japan's Kaneka plans $1.1 bln solar capex
20 Dec, 2008
http://tinyurl.com/8ev2gp
Company News
Japan's Kaneka Corp (4118.T) plans to spend more than $1.1 billion by 2015 to boost its solar cell production capacity 14-fold to meet growing demand, the Nikkei business daily said on Sunday. As part of the expansion plan, the chemicals maker will build a $224-million solar cell plant in Europe by 2011, the newspaper said. Demand for solar cells, which convert solar energy into electricity, is expanding rapidly due to concerns over climate change. The new plant, which makes thin-film solar cells, will have an annual production capacity of 200,000 kilowatts, the paper said. Thin-film solar cells use one-hundredth of the silicon needed in conventional solar cells, cutting production costs, although their conversion rates are lower. Kaneka has not decided on the specific location of the European plant, but it is considering building it at its manufacturing complex in Belgium, the Nikkei said. Kaneka, which competes with larger rivals such as Germany's Q-Cells and Japan's Sharp Corp, plans to bring its overall capacity to 1 million kilowatts a year by 2015, up from 70,000 kilowatts now, spending an estimated 100 billion yen ($1.12 billion) or more, the newspaper said. Greentech Media
Solar Fraud Could Eliminate Spanish Market
19 Dec, 2008
http://tinyurl.com/548dv2
Industry News
A government investigation has uncovered many incomplete projects that were reported as finished by a September deadline. Those projects could qualify for the new 500MW cap for 2009, blocking new project applications. A 500-megawatt solar energy development quota set by the Spanish government for 2009 might already be filled. That's because an ongoing government investigation has uncovered widespread fraud that could in effect reward those who falsely claimed to have completed solar power projects by a September deadline when they didn't, wrote Jeff Osborne, an equity analyst with Thomas Weisel Partners, in a research note Monday. Spain has a lucrative feed-in tariff program that requires utilities to buy solar electricity at high rates set by the government. After seeing an explosive growth of solar energy projects that far surpassed its estimates, the government reduced the solar electricity rates for solar power plants installed after Sept. 28 this year. The corruption also has caused an oversupply of solar panels. Paula Mints, market researcher for Navigant Consulting, jolted the solar industry two weeks ago with her assessment that as much as 1.7 gigawatts of panels were bought for installation in Spain by Sept. 28, only 800 megawatts of them were actually installed. Jefferies & Company
First Solar : An "All-Weather" Solar Story
19 Dec, 2008
Analyst Report
Company News
First Solar is the largest global thin film module manufacturer and has the highest margins in the photovoltaic (“PV”) space. We believe the company is well-positioned to outpace sector earnings growth under various macro scenarios. With a strong balance sheet (more than $700 million in cash and modest debt balances) and the sector’s lowest cost structure ($1.08 per Watt in 3Q08 vs. an average of more than $3.00), we think First Solar can continue to see robust earnings growth even if we see an extended period of demand weakness in end markets. First Solar’s cost advantage is driven by the high-throughput manufacturing benefits of thin-film production, and has allowed the company to sign long-term sales contracts for its modules at prices lower than market, while still earning the highest margins of any PV module producer. We note that almost 90% of all photovoltaic (“PV”) modules are made using crystalline silicon (“cSi”) technology rather than thin film, which does not use polysilicon as a feedstock. In this report we investigate the possibility that c-Si manufacturers will pressure FSLR’s industry-leading margins as lower silicon prices decline further. We conclude that this scenario is unlikely to play out in ’09, and that long-term we see few scenarios that seem credible today where FSLR does not have about double the margins of c-Si competitors. With a cost structure geared toward large systems and the company's acquisition of developer/integrator, Turner Solar last year, we believe FSLR is well-positioned to begin announcing utility-scale PV contracts during '09 for execution in the following years. We believe Utility-scale PV power plants represent a significant growth opportunity in the US, since a recent extension of the 30% Investment Tax Credit ("ITC") allows utilities to use the credit for the first time. We believe that management has shown a consistent track record of conservatism in managing expectations and its business. The company typically pre-sells several years of capacity before opening a new plant. FSLR has consistently beaten guidance and consensus due to better-than-forecast conversion efficiency, manufacturing throughput, and product yield. Mgt currently uses $1.15/€ as its unhedged market forex assumption for '09 guidance (vs. ~$1.45/€ spot rates), implying substantial upside if current $/€ forward curves hold. FSLR is also taking proactive steps to mitigate customer risk in the current credit environment.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 1 of 6
Market Intelligence Report SOLAR December 22, 2008
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Title
Date
Link
Category
Solar Industry
Billco Introduces Laminating Assembly Line For Solar Module Manufacturing
18 Dec, 2008
http://tinyurl.com/4k2rph
Company News
Billco Manufacturing, a company focused on flat-glass laminating equipment, has introduced its Lami-Pro laminating assembly line solution to the solar photovoltaic industry. Lami-Pro includes a glass washer, an assembly station for assembling the glass and PVB interlayer, and a heat press and nip rollers to heat the laminate prior to the autoclave. Optional glass-loading and off-loading equipment is also available. Billco says Lami-Pro is modular and can be offered as a complete line with custom configuration capabilities or utilized to upgrade existing equipment. Recipe line control minimizes the changeover time between laminates, and operator-friendly controls require minimal training. The heat press is designed to minimize energy consumption while maintaining the production of consistent, high-quality laminate. Greentech Media
Ernst & Young: $4.6B in Greentech VC Investment Through Q308
18 Dec, 2008
http://tinyurl.com/3rmpa8
Funding News
A big push to commercialize solar and other green technologies has brought venture capital investment in the United States, Europe, China and Israel to a new record, the firm says. But the economic downturn is likely to slow the pace of funding. Venture capital firms have poured a record $4.6 billion into greentech companies in the United States, Europe, China and Israel through the first three quarters of 2008 – but with the economy in freefall, don't expect that record-setting pace to continue. Venture capital firms have poured a record $4.6 billion into greentech companies in the United States, Europe, China and Israel through the first three quarters of 2008 – but with the economy in freefall, don't expect that record-setting pace to continue. The United States continued to lead the world in greentech VC investment, with $3.3 billion invested in greentech companies through the first three quarters of the year, up 71 percent from the same period last year, Ernst & Young reported. In Israel, greentech companies drew $76.5 million in VC investment in the first three quarters of 2008, more than double the $35.1 invested in the same period last year. The big winners were solar companies, which raised $46.5 million, and water treatment, conservation and monitoring companies, which raised $18.2 million. The most rapid growth, however, came in China, where venture capital firms invested $165 million in the first three quarters of 2008, a near-six fold increase from the $29.1 million invested in the same period in 2007. That huge growth was driven by investment in renewable energy companies, which gathered $95.8 million in the first three quarters of 2008, up from a mere $4.6 million in the same period last year – and of that funding, solar, with $85.2 million, was the clear leader. Solar Industry
SCI Commercializing Sputtering Targets For Thin-Film Solar Manufacturing
18 Dec, 2008
http://tinyurl.com/4cym7h
Company News
SCI Engineered Materials Inc., a manufacturer of ceramics and metals for advanced applications in the physical vapor deposition industry, has been awarded a $708,715 grant from the Ohio Department of Development to support the commercialization of rotatable ceramic sputtering targets for thin-film photovoltaic solar cell manufacturing. Specifically, SCI intends to commercialize technologies for the production of transparent conductive oxide coated glass used in thin-film photovoltaic solar panels. Rotatable ceramic sputtering targets can be used in production processes involving glass, stainless, or plastic substrates, making them applicable for second-generation thin film and third-generation dye cells. Optimizing the composition of the coating utilizing these targets will allow manufacturers to improve the efficiency of photovoltaic modules, SCI says. Solar Industry
ASP Releases Solar Panel Laser-Marking Technology
18 Dec, 2008
http://tinyurl.com/5x4ctd
Product News
Advanced Solar Photonics (ASP) has released its i-Series Fiber Laser Marking Kit, which can be used to mark glass panels - such as silicon solar panels - where intense heat and environmental extremes prohibit the use of other methods. For the solar industry, uses of the i-Series include inventory and maintenance tracking of solar panels, as well as performance rating. By marking the panels with a serial, barcode or UID mark, the life of the panels can be easily tracked and measured. Specifically designed for maintenance-free OEM applications, the i-Series is a compact, service-free laser designed to operate under high shock, vibration and dust conditions, with relatively high humidity and temperatures. With the focusable power and high power densities needed for the most demanding applications, the i-Series features fiber-to-fiber architecture with a robust, monolithic design with no optics to align or maintain and no mechanics to stabilize, the company says. Trina Solar
Trina Solar Announces 'MeSolar' Brand UMG-Silicon Based Product 18 Dec, 2008 Line
http://tinyurl.com/3g5eoy
Product News
Trina Solar Limited (''Trina Solar'' or the ''Company''), a leading integrated manufacturer of photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced the launch of the brand name "MeSolar" for its newly in-house developed line of products based on Upgraded Metallurgical Grade ("UMG") silicon materials. The product line is part of Trina Solar's strategy to expand its product portfolio in order to address customers' increasing demand for lower cost solar module systems. "We are pleased to introduce the brand name 'MeSolar' which represents our high quality and efficient modules using UMG silicon materials, with advantageous prices for our customers," stated Arturo Herrero, Trina Solar's Vice President of Sales & Marketing. "MeSolar" products undergo a stringent production process as well as rigorous quality control checks as a result of initial optimization and critical development stages during testing along the entire value chain, starting from UMG silicon materials, wafers, and cells, to modules, the final product. Trina Solar plans to launch production of "MeSolar", employing its existing, dedicated manufacturing lines, with sales and deliveries planned throughout 2009. The UMG-based "MeSolar" modules have a 20-year warranty.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 2 of 6
Market Intelligence Report SOLAR December 22, 2008
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Title
Date
Link
Category
CPN Online
Signet Solar to Build $840M Plant in New Mexico
18 Dec, 2008
http://tinyurl.com/3st3lb
Company News
Signet Solar Inc., a manufacturer of thin film silicon photovoltaic modules based in Menlo Park, Calif., plans to build an $840 million manufacturing facility in Belen, N.M., about 30 minutes south of Albuquerque. The project will go up in two phases. Expected to open in 2010, the $200 million first phase will bring about 200 high-wage jobs to the state. Phase II will cost about $640 million and add another 400 permanent jobs. The plant will span 600,000 square feet. The facility will produce modules for commercial rooftop and ground mounted solar power systems. The first phase will have the capacity to produce panels capable of generating 65 megawatts of power per year. That’s enough power to provide electricity to about 20,000 houses. Phase II will boost capacity to 300 megawatts per year. The 75-acre installation will be part of a master planned industrial and residential community called Rancho Cielo, which is being developed by San Francisco-based Coast Range Investments. Rancho Cielo plans to use Signet panels on a 700-acre solar farm designed to meet the majority of the community’s power requirements. Renewable Energy World.com
Epuron & GE Set US $250M Investment Target
17 Dec, 2008
http://tinyurl.com/3s4yn4
Industry News
Epuron Pte. Ltd. Singapore, a regional subsidiary of the Conergy Group in Asia-Pacific, and GE Energy Financial Services have launched Asia-Pacific's first renewable energy private trust to spur their growth and investments in wind, solar, small hydroelectric, biogas and biomass power generation throughout the region. The Renewable Energy Trust Asia (RETA) is an investment vehicle focused on the US $7 billion annual renewable energy markets of India, the Association of Southeast Asian Nations (ASEAN) countries and South Korea. It plans to build a portfolio of some 200 megawatts through potential investments totaling US $250 million within the next five years. With an 80 percent stake, GE Energy Financial Services will serve as RETA’s anchor investor. In addition to maintaining its core expertise in greenfield development, Epuron will hold a 20 percent stake in RETA and act as its Trustee-Manager. Epuron will be responsible for project development, debt financing, acquisition of hardware and supervision of the construction of renewable energy projects. GE Energy Financial Services will share expenses, deciding on each proposed investment when presented. Financial details of the arrangement were not disclosed. Renewable Energy World.com
Obama Administration Energy Team Revealed
17 Dec, 2008
http://tinyurl.com/4a6eq3
Industry News
On Monday, President-elect Barack Obama announced key members of his energy and environment team. Dr. Steven Chu, currently the director of the Lawrence Berkley National Lab (LBNL) was named as Obama's choice for Secretary of Energy. Lisa Jackson was chosen for Environmental Protection Agency (EPA) Administrator. Nancy Sutley will become the Chair of the White House Council on Environmental Quality (CEQ). Carol Browner has been named as the Assistant to the President for Energy and Climate Change and Heather Zichal was named as Browner's Deputy Assistant. The choices reflect the Obama administration's campaign promise to seriously address energy and environmental issues from the day it takes office. Venture Beat
Konarka powers up with $45M for solar “plastic”
17 Dec, 2008
http://tinyurl.com/3qca93
Company News
Solar innovator Konarka Technologies took in $45 million in strategic funding to further develop its new product for sunlight conversion called Power Plastic and bring it to market. Oil and gas company Total provided the round, acquiring a 20 percent stake in Lowell, Mass.-based Konarka. It hopes to integrate the plastic solar film into products made and used by its subsidiaries, including Hutchinson, Sartomer and Bostik. The Power Plastic line is prized for being lightweight, flexible and easily scalable for a variety of purposes. Its current conversion rate of sunlight to energy is six percent, but future incarnations should up that figure. Previously, Konarka had raised $115 million from a large flock of investors including 3i Group, Chevron, Draper Fisher Jurvetson, New Enterprise Associates and Vanguard Venture Partners, among others. It last raised capital in the fall of 2007, bringing in another $45 million from Good Energies and Mackenzie Financial. The company says it will keep the current strategic round open but hasn’t released a target amount. Kaufman Bros.
BTU International Inc.
17 Dec, 2008
Analyst Report
Company News
BTU International hosted a site visit with Kaufman Bros. on Monday Dec. 15. Key takeaways from the visit are that the solar initiative is paying off and orders for equipment to thermally process cadmium-telluride and copper-indium-gallium-diselenide is moving ahead nicely. The company has almost completed its solar evaluation site inside the factory and this will allow customers to test BTU equipment in a mock factory setting. BTU is successfully addressing the alternative energy market and we believe it could more than quadruple revenue for this firm. Major shipments begin in 1Q09. Orders are already more than 30% of current business levels. It is achieving success in thin-film and silicon solar. Having reached an inflection point, we believe BTU International is poised to transition to a major equipment supplier for the thin-film solar cell sector. It has momentum in the form of a major win and is in the process of re-configuring the manufacturing space to accommodate the production of several new products. It has also made several good hires in the alternative energy segment.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 3 of 6
Market Intelligence Report SOLAR December 22, 2008
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Title
Date
Link
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Industrial Info.com
Jordan Plans 1,000-Megawatt Solar-Power Plant
16 Dec, 2008
http://tinyurl.com/9menk8
Industry News
Researched by Industrial Info Resources (Sugar Land, Texas)--At a time when the world's photovoltaic (PV) industry is forecast to grow 23% by 2012, a plan to build a 1,000-megwatt (MW) PV power station has been announced in Jordan, with completion of the project scheduled for 2017. The first phase of the project will involve the construction of a 22-MW plant to produce thin-film PV modules using a manufacturing platform created and installed by Amelio Solar. EurActiv.com
European solar industry going strong, EU research shows
16 Dec, 2008
http://tinyurl.com/3p8zkl
Industry News
Half of the world's photovoltaic electricity is currently produced in the EU, but the European solar industry must continue its "impressive growth" to maintain its market position in the years to come, argues a study released by the European Commission's Joint Research Centre (JRC) last week. The annual Photovoltaics Status Report demonstrates that solar power production grew at a rapid rate, averaging 40% over five years since 2003 and peaking at 60% in 2007. This means that the European photovoltaic industry is now worth €14 billion a year. The JRC notes that Europe has increased its production volume significantly, and even reached its 2010 target four years in advance. It estimates that while solar energy still only makes up 0.2% of total electricity consumption in Europe, 0.5% of total electricity production in the EU 27 will be generated through solar power in 2010, the equivalent of the total electricity consumption of Slovenia. Greentech Media
First Solar Reaches Grid-Parity Milestone, Says Report
16 Dec, 2008
http://tinyurl.com/6r3zlk
Company News
An analysis of First Solar's system in the Nevada desert argues that solar costs less than coal. Renewables rejoice. A 12.6-megawatt system installed by First Solar (NSDQ: FSLR) for Sempra Generation showed that the system can produce electricity at below the price of conventional power in the United States, said Mark Bachman, an equity analyst at Pacific Crest, in a research note Tuesday. The solar power plant, located in the Nevada desert, costs $0.075 per kilowatt hour to install without any subsidies, Bachman wrote. Conventional power fed into the grid costs $0.09 per kilowatt hour. And First Solar isn't the only narrowing in on it. Yesterday, Cypress Semiconductor CEO T.J. Rodgers told a group of reporters that power from crystalline silicon solar panels will be cheaper than coal power by 2012 when transmissions lines, utility bureaucracy and other factors are added in. "We are zeroing in on parity," Rodgers said. "We're going to match PG&E (Pacific Gas and Electric) by 2012. Within a couple of years, the price of solar will be just as cheap." Collins Stewart
Solar Update
16 Dec, 2008
Analyst Report
Industry News
Spanish Solar Market Inventory overhang has been known for months, and was a key factor leading solar module vendors to limit 4Q08 production. Our forecast assumes that the inventory overhang in Spain limits demand from Spain to 350MW in CY09, and that 150MW will be consumed from inventory to enable that market to meet the 500MW feed-in tariff cap. The Spanish market will consume virtually no new module shipments in 4Q08 and 1Q09, which limits demand on each of those quarters. We expect industry demand to be extremely weak in 1Q09, but to then show some recovery in 2Q09. The vendors most negatively impacted by the demand situation in Spain are Suntech and JA Solar. While near-term demand looks weak due to the credit crisis and the situation in Spain , there have been several positive long-term developments in recent weeks, including a strengthening of the Euro (aides $ denominated revenues and margins), President-Elect Obama announcing a pro-solar energy team, and a >50% decline in the price of polysilicon. Dow Corning
Dow Corning Announces Multi-Billion Dollar Investments to Serve Emerging Global Solar Power Industry
15 Dec, 2008
http://tinyurl.com/58utqt
Company News
Investment provides critical raw materials to solar cell manufacturers. Dow Corning Corporation announced today several billion dollars of investment to provide critical materials to the fast-growing solar technology industry. “Dow Corning and our Hemlock Semiconductor joint ventures hope to create a viable solar industry that produces new, high paying jobs, clean power technologies and a revitalized economy,” said Stephanie A. Burns, Dow Corning’s chairman, president and CEO. “We’re committing our resources, know-how and technology because we are confident that solar technology represents a tremendous opportunity for both clean energy and economic growth.” Dow Corning will begin manufacturing high purity monosilane, a key specialty gas used to manufacture thin-film solar cells and liquid crystal displays (LCDs). This investment includes construction of a new monosilane manufacturing facility in Hemlock, Michigan, adjacent to Hemlock Semiconductor Corporation’s polysilicon manufacturing site. The investment also includes up to $3.0 billion at Dow Corning joint ventures Hemlock Semiconductor Corporation and Hemlock Semiconductor LLC. The companies will expand Hemlock Semiconductor Corporation’s existing Michigan manufacturing facility and build a new site in Clarksville, Tennessee to increase manufacturing capacity for polycrystalline silicon (polysilicon) – the cornerstone material used to manufacture most solar cells.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 4 of 6
Market Intelligence Report SOLAR December 22, 2008
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Title
Date
Link
Category
EE Times
First commercial Concentrator Photovoltaic technology solar project to be developed in Greece
15 Dec, 2008
http://tinyurl.com/5yovyy
Company News
SolFocus has reached an agreement with Concept, a division of the Samaras Group, to jointly develop the first commercial installation of Concentrator Photovoltaic (CPV) solar technology in Greece. SolFocus is expanding its Madrid-based European operations to open a subsidiary in Greece. Spanning multiple sites, the deployment will have the capacity to produce 1.6 megawatts (MW) of power using the SolFocus 1100S system. The new 1100S achieves panel efficiencies of 25 percent, offering the highest energy yield of PV systems available today. The installation will begin in the spring of 2009 with the first delivery of power expected in the summer. EE Times
Bosch, Q-Cells expand solar capacities
15 Dec, 2008
http://tinyurl.com/5l4bnv
Industry News
The Bosch group announced to invest in expanding the production capacities at its Arnstadt location for crystalline solar cells and modules at ersol Solar Energy AG (Erfurt, Germany) of which Bosch is the majority shareholder. The company said it plans to invest €530 million (about $700 million), almost tripling the company's production capacity to about 630 MWp. The construction activities will commence as early as the current week, the company said. Besides a production line for crystalline solar cells, the company also plans to install a module manufacturing line and to expand its R&D activities. The production in the new facilities is scheduled to ramp up early 2010. The move will add 1100 jobs to the existing 1200 jobs at the company. Q-Cells (Bitterfeld-Wolfen, Germany) also announced to expand its production capacity. The company has assigned an order to design and build a solar module factory to engineering service provider M+W Zander (Stuttgart, Germany). The production line will be built in Thalheim in Germany's state of Thuringia where already several solar technology manufacturers are active and hence have baptized the region "Solar Valley". The Q-Cells factory will produce thin-film modules and offer a capacity of 90 MWp. The company declined to elaborate on the value of the investment. Toledoblade.com
Xunlight, SuGanit obtain alternative energy grants
15 Dec, 2008
http://tinyurl.com/6cfrle
Industry News
Two Toledo companies were among 10 organizations in the state awarded grants to accelerate the development of advanced energy in Ohio. Xunlight Corp. received $995,577 for the online performance measurement of its thin film photovoltaic manufacturing. The company plans to improve its product yield with a system to measure the film thickness and voltage of the solar cells as they are produced. SuGanit Systems was awarded a $999,900 grant to convert biomass to ethanol fuel. The state noted that the local company’s performance in terms of yield, costs, and time was significantly better than its competitors. More than $9 million was awarded through the Ohio Third Frontier program. Venture Beat
Hemlock Semiconductor raises $3 billion to build chip and solar cell 15 Dec, 2008 materials
http://tinyurl.com/6j48tc
Company News
Ever since solar cells took off a few years ago, there has been a shortage of silicon in its purest form. That’s because polycrystalline silicon is used to make both semiconductor chips and most solar cells. Because of that, the Hemlock Semiconductor Group has been able to raise $3 billion to expand the production of polysilicon at two major manufacturing sites. The group will invest that money to build a new factory in Clarksville, Tenn., and to add to another one in Hemlock, Mich. About $1.2 billion will go toward the new site in Clarksville, and another $1 billion to the Hemlock plant. The rest of the money will fund further expansions. Together, those factories will be able to produce 34,000 metric tons of polysilicon per year. Construction will begin immediately. The numbers involved give you a sense of the scale of the business and a sense for how much polysilicon is needed to fuel the world’s growing appetite for solar power. Altogether, the Hemlock Semiconductor Group has announced investments of $4.5 billion in the past five years. From 2005 to 2015, the company will have increased its production capacity ten-fold. The shortage of polysilicon has driven up prices for various kinds of chips and driven a lot of solar start-ups to focus on thin-film technology that doesn’t use polysilicon. The Michigan expansion will add 13,000 tons of capacity to the site, creating 300 permanent jobs and 8u0 construction jobs. The expanded plant is expected to begin production in 2011. In Clarksville, the factory will initially produce 10,000 tons of polysilicon. The site is expected to employ 500 people at first and then 800 at full production of 21,000 tons a year. The construction will create 1,000 jobs. Cormark Securities
Solar Power Headwinds Continue
15 Dec, 2008
Analyst Report
Industry News
Q-Cells had a horrendous week, following the need to cut its 2008 and 2009 guidance amid growing signs that the credit crisis is hitting solar power projects - and hitting them hard. Q-Cells is increasingly receiving requests to delay shipments, providing the strongest evidence to date that inventories of panels are high as project developers curtail the buildout of facilities. The situation is not isolated to Q-Cells. Only a day later, JA Solar slashed its guidance, noting a serious slowdown in orders. While negative for the entire space, the news is significantly more detrimental to Timminco Ltd, as a supplier of UMG-Si to Q-Cells. US Policy Shift: In introducing his picks for energy secretary (Dr. Steven Chu, a Nobel Laureate and director of the Lawrence Berkeley National Laboratory), creating a top White House official on climate and energy policy (Carol Browner, the EPA administrator under Bill Clinton), naming a head of the White House Council on Environmental Quality, (Nancy Sutley, deputy mayor of Los Angeles for energy and environment) and head of the EPA (Lisa P. Jackson, New Jersey’s commissioner of environmental protection), Obama signaled his intention to address global climate change while dealing with economic worries.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 5 of 6
Market Intelligence Report SOLAR December 22, 2008
Source
Title
Date
Link
Category
Thomas Weisel Partners
Alternative Energy
15 Dec, 2008
Analyst Report
Industry News
Solar Has More Problems Than Just The Credit Crisis; Spain's Developers Seem To Be Caught Red Handed In Massive Fraud Scheme Investor focus on Spain has weaned in the last several months following the announcement of the 500MW cap which will dramatically slow the Spanish markets growth from 2008 to 2009. However, a newspaper article this weekend in the El Pais in Spain caught our attention and is a major cause for concern. Over the past few weeks, we have learned that the investigation into fraudulent practices in the Spanish solar sector has turned up that the corruption is much more wide spread than once believed. The ongoing federal investigation in Spain regarding the solar industry may have a negative impact on many of the cell/module producers, especially Chinese producers that sold heavily into the market in 2008. It is our understanding that solar plants that were not in compliance can reapply in 1Q and 2Q of 2009 and will have priority. As a result of this bonanza of greed that occurred in the Spanish region pre-September 28th and the fraudulent project developer activity we could see these fraudulent solar farms take up the entire 500MW cap next year given the new scope of the investigation. We are also concerned that some of the funding for these fraudulent programs could get pulled and over time, these partially installed systems may be dismantled and dumped on the grey market, further pressuring prices. We believe many Chinese producers were selling into the Spanish market in early 2008, as such, the potential lack of any unit shipments into this key market for 2009 is a concern. Spanish Investigation Update: The Spanish solar market grew from just 8MW in 2004 a feat that took just over 4 days in 2008 given the massive subsidy. The 900% boom in the Spanish solar sector has spawned 29,000 facilities creating 24,000 new jobs as well as massive speculation which corresponded with the exceptional returns on the solar projects as well as time of loose lending practices. According to El Pais, at the height of the solar boom there were ads circulating for the sale of connection points for the solar systems at 600,000 Euros per MW, after an investment of only 60,000 Euros by the owner. Installation permits were no different. The diver of the massive speculation was the underlying “investment recovered in 10 years, guaranteed yield for a minimum of 25 years plus tax exemptions; all in all, a guaranteed profitability of at least 12 percent. Behind every solar plant is a financial product. And the other side of sustainability hides ugly habits from the real estate boom: corruption and speculation”, as quoted by the El Pais article. The process was perpetuated by the decentralized nature of the program, with each region responsible for granting and setting the requirements for the project authorization. In each region however there have been no public tenders or transparent decisions. According to the El Pais, the first sign of corruption in Castilla y Leon, where 6 civil servants resigned after it was shown they granted permits to relatives. The same practices are present throughout the other regions of Spain. The CNE, the Spanish energy regulator, has been investigating solar farms since October 31st. Recent press reports indicate that 287 solar farms have been investigated to find out whether they have committed irregularities in accelerating the enrollment process so as to benefit from the old feed in tariff rate pre September 28, 2008. Of the solar plants investigated, 97 were producing electricity and are validly collecting the pre-September 28th subsidy rate. A further 94 plants were installed but still need to be connected and a remaining 96 plants that were filed for the pre-September 28th subsidy are neither connected nor near completion. It is our understanding that solar plants that were not in compliance can reapply in 1Q and 2Q of 2009 and will have priority. Only 33.8% (97 of 287) of the solar farms inspected were validly collecting feed in tariff revenue. Credit Crisis and Inventory Will Take Months to Sort Out: We believe the credit crisis will linger well into 2009, leading to a soft start to the year and continued pricing pressure. In the mean time, a great deal of inventory is building up in key markets and at manufacturing facilities in China and Taiwan. QCell’s recent preannouncement call suggested that Chinese competitors were attempting to dump product into the German market, pressuring prices further. We do not believe Germany alone can soak up all of the excess inventory that has been built. The project finance availability outside of Germany is very weak currently. We believe once the credit crisis eases, it may take 3-4 months for inventory to be flushed out of the system.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 6 of 6
Source
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Date
Link
Category
Postcrescent.com
Town of Menasha installation to be Valley largest solar energy system
21 Dec, 2008
http://tinyurl.com/a9cxo9
Industry News
George Dearborn believes the town will become a renewable energy leader by example with the installation of a large solar system next spring. Dearborn, the town's community development director, said last week's action by the Town Board to award a $240,453 contract to Energize LLC, Winneconne, will give the town three large solar installations on the west side. Energize owner Jim Funk said the 25.2-kilowatt system would be the largest in the Fox Cities and one of the largest solar installations north of Milwaukee. The town's net cost of groundmounted solar panels, to be installed on an elevated ridge just west of the town municipal complex at 2000 Municipal Drive, is $95,588. Two grants, $95,588 from Wisconsin Energy and a $49,277 Focus on Energy incentive reduced the cost for the town, which plans to borrow for its share of the project. Reuters
Japan's Kaneka plans $1.1 bln solar capex
20 Dec, 2008
http://tinyurl.com/8ev2gp
Company News
Japan's Kaneka Corp (4118.T) plans to spend more than $1.1 billion by 2015 to boost its solar cell production capacity 14-fold to meet growing demand, the Nikkei business daily said on Sunday. As part of the expansion plan, the chemicals maker will build a $224-million solar cell plant in Europe by 2011, the newspaper said. Demand for solar cells, which convert solar energy into electricity, is expanding rapidly due to concerns over climate change. The new plant, which makes thin-film solar cells, will have an annual production capacity of 200,000 kilowatts, the paper said. Thin-film solar cells use one-hundredth of the silicon needed in conventional solar cells, cutting production costs, although their conversion rates are lower. Kaneka has not decided on the specific location of the European plant, but it is considering building it at its manufacturing complex in Belgium, the Nikkei said. Kaneka, which competes with larger rivals such as Germany's Q-Cells and Japan's Sharp Corp, plans to bring its overall capacity to 1 million kilowatts a year by 2015, up from 70,000 kilowatts now, spending an estimated 100 billion yen ($1.12 billion) or more, the newspaper said. Greentech Media
Solar Fraud Could Eliminate Spanish Market
19 Dec, 2008
http://tinyurl.com/548dv2
Industry News
A government investigation has uncovered many incomplete projects that were reported as finished by a September deadline. Those projects could qualify for the new 500MW cap for 2009, blocking new project applications. A 500-megawatt solar energy development quota set by the Spanish government for 2009 might already be filled. That's because an ongoing government investigation has uncovered widespread fraud that could in effect reward those who falsely claimed to have completed solar power projects by a September deadline when they didn't, wrote Jeff Osborne, an equity analyst with Thomas Weisel Partners, in a research note Monday. Spain has a lucrative feed-in tariff program that requires utilities to buy solar electricity at high rates set by the government. After seeing an explosive growth of solar energy projects that far surpassed its estimates, the government reduced the solar electricity rates for solar power plants installed after Sept. 28 this year. The corruption also has caused an oversupply of solar panels. Paula Mints, market researcher for Navigant Consulting, jolted the solar industry two weeks ago with her assessment that as much as 1.7 gigawatts of panels were bought for installation in Spain by Sept. 28, only 800 megawatts of them were actually installed. Jefferies & Company
First Solar : An "All-Weather" Solar Story
19 Dec, 2008
Analyst Report
Company News
First Solar is the largest global thin film module manufacturer and has the highest margins in the photovoltaic (“PV”) space. We believe the company is well-positioned to outpace sector earnings growth under various macro scenarios. With a strong balance sheet (more than $700 million in cash and modest debt balances) and the sector’s lowest cost structure ($1.08 per Watt in 3Q08 vs. an average of more than $3.00), we think First Solar can continue to see robust earnings growth even if we see an extended period of demand weakness in end markets. First Solar’s cost advantage is driven by the high-throughput manufacturing benefits of thin-film production, and has allowed the company to sign long-term sales contracts for its modules at prices lower than market, while still earning the highest margins of any PV module producer. We note that almost 90% of all photovoltaic (“PV”) modules are made using crystalline silicon (“cSi”) technology rather than thin film, which does not use polysilicon as a feedstock. In this report we investigate the possibility that c-Si manufacturers will pressure FSLR’s industry-leading margins as lower silicon prices decline further. We conclude that this scenario is unlikely to play out in ’09, and that long-term we see few scenarios that seem credible today where FSLR does not have about double the margins of c-Si competitors. With a cost structure geared toward large systems and the company's acquisition of developer/integrator, Turner Solar last year, we believe FSLR is well-positioned to begin announcing utility-scale PV contracts during '09 for execution in the following years. We believe Utility-scale PV power plants represent a significant growth opportunity in the US, since a recent extension of the 30% Investment Tax Credit ("ITC") allows utilities to use the credit for the first time. We believe that management has shown a consistent track record of conservatism in managing expectations and its business. The company typically pre-sells several years of capacity before opening a new plant. FSLR has consistently beaten guidance and consensus due to better-than-forecast conversion efficiency, manufacturing throughput, and product yield. Mgt currently uses $1.15/€ as its unhedged market forex assumption for '09 guidance (vs. ~$1.45/€ spot rates), implying substantial upside if current $/€ forward curves hold. FSLR is also taking proactive steps to mitigate customer risk in the current credit environment.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 1 of 6
Market Intelligence Report SOLAR December 22, 2008
Source
Title
Date
Link
Category
Solar Industry
Billco Introduces Laminating Assembly Line For Solar Module Manufacturing
18 Dec, 2008
http://tinyurl.com/4k2rph
Company News
Billco Manufacturing, a company focused on flat-glass laminating equipment, has introduced its Lami-Pro laminating assembly line solution to the solar photovoltaic industry. Lami-Pro includes a glass washer, an assembly station for assembling the glass and PVB interlayer, and a heat press and nip rollers to heat the laminate prior to the autoclave. Optional glass-loading and off-loading equipment is also available. Billco says Lami-Pro is modular and can be offered as a complete line with custom configuration capabilities or utilized to upgrade existing equipment. Recipe line control minimizes the changeover time between laminates, and operator-friendly controls require minimal training. The heat press is designed to minimize energy consumption while maintaining the production of consistent, high-quality laminate. Greentech Media
Ernst & Young: $4.6B in Greentech VC Investment Through Q308
18 Dec, 2008
http://tinyurl.com/3rmpa8
Funding News
A big push to commercialize solar and other green technologies has brought venture capital investment in the United States, Europe, China and Israel to a new record, the firm says. But the economic downturn is likely to slow the pace of funding. Venture capital firms have poured a record $4.6 billion into greentech companies in the United States, Europe, China and Israel through the first three quarters of 2008 – but with the economy in freefall, don't expect that record-setting pace to continue. Venture capital firms have poured a record $4.6 billion into greentech companies in the United States, Europe, China and Israel through the first three quarters of 2008 – but with the economy in freefall, don't expect that record-setting pace to continue. The United States continued to lead the world in greentech VC investment, with $3.3 billion invested in greentech companies through the first three quarters of the year, up 71 percent from the same period last year, Ernst & Young reported. In Israel, greentech companies drew $76.5 million in VC investment in the first three quarters of 2008, more than double the $35.1 invested in the same period last year. The big winners were solar companies, which raised $46.5 million, and water treatment, conservation and monitoring companies, which raised $18.2 million. The most rapid growth, however, came in China, where venture capital firms invested $165 million in the first three quarters of 2008, a near-six fold increase from the $29.1 million invested in the same period in 2007. That huge growth was driven by investment in renewable energy companies, which gathered $95.8 million in the first three quarters of 2008, up from a mere $4.6 million in the same period last year – and of that funding, solar, with $85.2 million, was the clear leader. Solar Industry
SCI Commercializing Sputtering Targets For Thin-Film Solar Manufacturing
18 Dec, 2008
http://tinyurl.com/4cym7h
Company News
SCI Engineered Materials Inc., a manufacturer of ceramics and metals for advanced applications in the physical vapor deposition industry, has been awarded a $708,715 grant from the Ohio Department of Development to support the commercialization of rotatable ceramic sputtering targets for thin-film photovoltaic solar cell manufacturing. Specifically, SCI intends to commercialize technologies for the production of transparent conductive oxide coated glass used in thin-film photovoltaic solar panels. Rotatable ceramic sputtering targets can be used in production processes involving glass, stainless, or plastic substrates, making them applicable for second-generation thin film and third-generation dye cells. Optimizing the composition of the coating utilizing these targets will allow manufacturers to improve the efficiency of photovoltaic modules, SCI says. Solar Industry
ASP Releases Solar Panel Laser-Marking Technology
18 Dec, 2008
http://tinyurl.com/5x4ctd
Product News
Advanced Solar Photonics (ASP) has released its i-Series Fiber Laser Marking Kit, which can be used to mark glass panels - such as silicon solar panels - where intense heat and environmental extremes prohibit the use of other methods. For the solar industry, uses of the i-Series include inventory and maintenance tracking of solar panels, as well as performance rating. By marking the panels with a serial, barcode or UID mark, the life of the panels can be easily tracked and measured. Specifically designed for maintenance-free OEM applications, the i-Series is a compact, service-free laser designed to operate under high shock, vibration and dust conditions, with relatively high humidity and temperatures. With the focusable power and high power densities needed for the most demanding applications, the i-Series features fiber-to-fiber architecture with a robust, monolithic design with no optics to align or maintain and no mechanics to stabilize, the company says. Trina Solar
Trina Solar Announces 'MeSolar' Brand UMG-Silicon Based Product 18 Dec, 2008 Line
http://tinyurl.com/3g5eoy
Product News
Trina Solar Limited (''Trina Solar'' or the ''Company''), a leading integrated manufacturer of photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced the launch of the brand name "MeSolar" for its newly in-house developed line of products based on Upgraded Metallurgical Grade ("UMG") silicon materials. The product line is part of Trina Solar's strategy to expand its product portfolio in order to address customers' increasing demand for lower cost solar module systems. "We are pleased to introduce the brand name 'MeSolar' which represents our high quality and efficient modules using UMG silicon materials, with advantageous prices for our customers," stated Arturo Herrero, Trina Solar's Vice President of Sales & Marketing. "MeSolar" products undergo a stringent production process as well as rigorous quality control checks as a result of initial optimization and critical development stages during testing along the entire value chain, starting from UMG silicon materials, wafers, and cells, to modules, the final product. Trina Solar plans to launch production of "MeSolar", employing its existing, dedicated manufacturing lines, with sales and deliveries planned throughout 2009. The UMG-based "MeSolar" modules have a 20-year warranty.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 2 of 6
Market Intelligence Report SOLAR December 22, 2008
Source
Title
Date
Link
Category
CPN Online
Signet Solar to Build $840M Plant in New Mexico
18 Dec, 2008
http://tinyurl.com/3st3lb
Company News
Signet Solar Inc., a manufacturer of thin film silicon photovoltaic modules based in Menlo Park, Calif., plans to build an $840 million manufacturing facility in Belen, N.M., about 30 minutes south of Albuquerque. The project will go up in two phases. Expected to open in 2010, the $200 million first phase will bring about 200 high-wage jobs to the state. Phase II will cost about $640 million and add another 400 permanent jobs. The plant will span 600,000 square feet. The facility will produce modules for commercial rooftop and ground mounted solar power systems. The first phase will have the capacity to produce panels capable of generating 65 megawatts of power per year. That’s enough power to provide electricity to about 20,000 houses. Phase II will boost capacity to 300 megawatts per year. The 75-acre installation will be part of a master planned industrial and residential community called Rancho Cielo, which is being developed by San Francisco-based Coast Range Investments. Rancho Cielo plans to use Signet panels on a 700-acre solar farm designed to meet the majority of the community’s power requirements. Renewable Energy World.com
Epuron & GE Set US $250M Investment Target
17 Dec, 2008
http://tinyurl.com/3s4yn4
Industry News
Epuron Pte. Ltd. Singapore, a regional subsidiary of the Conergy Group in Asia-Pacific, and GE Energy Financial Services have launched Asia-Pacific's first renewable energy private trust to spur their growth and investments in wind, solar, small hydroelectric, biogas and biomass power generation throughout the region. The Renewable Energy Trust Asia (RETA) is an investment vehicle focused on the US $7 billion annual renewable energy markets of India, the Association of Southeast Asian Nations (ASEAN) countries and South Korea. It plans to build a portfolio of some 200 megawatts through potential investments totaling US $250 million within the next five years. With an 80 percent stake, GE Energy Financial Services will serve as RETA’s anchor investor. In addition to maintaining its core expertise in greenfield development, Epuron will hold a 20 percent stake in RETA and act as its Trustee-Manager. Epuron will be responsible for project development, debt financing, acquisition of hardware and supervision of the construction of renewable energy projects. GE Energy Financial Services will share expenses, deciding on each proposed investment when presented. Financial details of the arrangement were not disclosed. Renewable Energy World.com
Obama Administration Energy Team Revealed
17 Dec, 2008
http://tinyurl.com/4a6eq3
Industry News
On Monday, President-elect Barack Obama announced key members of his energy and environment team. Dr. Steven Chu, currently the director of the Lawrence Berkley National Lab (LBNL) was named as Obama's choice for Secretary of Energy. Lisa Jackson was chosen for Environmental Protection Agency (EPA) Administrator. Nancy Sutley will become the Chair of the White House Council on Environmental Quality (CEQ). Carol Browner has been named as the Assistant to the President for Energy and Climate Change and Heather Zichal was named as Browner's Deputy Assistant. The choices reflect the Obama administration's campaign promise to seriously address energy and environmental issues from the day it takes office. Venture Beat
Konarka powers up with $45M for solar “plastic”
17 Dec, 2008
http://tinyurl.com/3qca93
Company News
Solar innovator Konarka Technologies took in $45 million in strategic funding to further develop its new product for sunlight conversion called Power Plastic and bring it to market. Oil and gas company Total provided the round, acquiring a 20 percent stake in Lowell, Mass.-based Konarka. It hopes to integrate the plastic solar film into products made and used by its subsidiaries, including Hutchinson, Sartomer and Bostik. The Power Plastic line is prized for being lightweight, flexible and easily scalable for a variety of purposes. Its current conversion rate of sunlight to energy is six percent, but future incarnations should up that figure. Previously, Konarka had raised $115 million from a large flock of investors including 3i Group, Chevron, Draper Fisher Jurvetson, New Enterprise Associates and Vanguard Venture Partners, among others. It last raised capital in the fall of 2007, bringing in another $45 million from Good Energies and Mackenzie Financial. The company says it will keep the current strategic round open but hasn’t released a target amount. Kaufman Bros.
BTU International Inc.
17 Dec, 2008
Analyst Report
Company News
BTU International hosted a site visit with Kaufman Bros. on Monday Dec. 15. Key takeaways from the visit are that the solar initiative is paying off and orders for equipment to thermally process cadmium-telluride and copper-indium-gallium-diselenide is moving ahead nicely. The company has almost completed its solar evaluation site inside the factory and this will allow customers to test BTU equipment in a mock factory setting. BTU is successfully addressing the alternative energy market and we believe it could more than quadruple revenue for this firm. Major shipments begin in 1Q09. Orders are already more than 30% of current business levels. It is achieving success in thin-film and silicon solar. Having reached an inflection point, we believe BTU International is poised to transition to a major equipment supplier for the thin-film solar cell sector. It has momentum in the form of a major win and is in the process of re-configuring the manufacturing space to accommodate the production of several new products. It has also made several good hires in the alternative energy segment.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 3 of 6
Market Intelligence Report SOLAR December 22, 2008
Source
Title
Date
Link
Category
Industrial Info.com
Jordan Plans 1,000-Megawatt Solar-Power Plant
16 Dec, 2008
http://tinyurl.com/9menk8
Industry News
Researched by Industrial Info Resources (Sugar Land, Texas)--At a time when the world's photovoltaic (PV) industry is forecast to grow 23% by 2012, a plan to build a 1,000-megwatt (MW) PV power station has been announced in Jordan, with completion of the project scheduled for 2017. The first phase of the project will involve the construction of a 22-MW plant to produce thin-film PV modules using a manufacturing platform created and installed by Amelio Solar. EurActiv.com
European solar industry going strong, EU research shows
16 Dec, 2008
http://tinyurl.com/3p8zkl
Industry News
Half of the world's photovoltaic electricity is currently produced in the EU, but the European solar industry must continue its "impressive growth" to maintain its market position in the years to come, argues a study released by the European Commission's Joint Research Centre (JRC) last week. The annual Photovoltaics Status Report demonstrates that solar power production grew at a rapid rate, averaging 40% over five years since 2003 and peaking at 60% in 2007. This means that the European photovoltaic industry is now worth €14 billion a year. The JRC notes that Europe has increased its production volume significantly, and even reached its 2010 target four years in advance. It estimates that while solar energy still only makes up 0.2% of total electricity consumption in Europe, 0.5% of total electricity production in the EU 27 will be generated through solar power in 2010, the equivalent of the total electricity consumption of Slovenia. Greentech Media
First Solar Reaches Grid-Parity Milestone, Says Report
16 Dec, 2008
http://tinyurl.com/6r3zlk
Company News
An analysis of First Solar's system in the Nevada desert argues that solar costs less than coal. Renewables rejoice. A 12.6-megawatt system installed by First Solar (NSDQ: FSLR) for Sempra Generation showed that the system can produce electricity at below the price of conventional power in the United States, said Mark Bachman, an equity analyst at Pacific Crest, in a research note Tuesday. The solar power plant, located in the Nevada desert, costs $0.075 per kilowatt hour to install without any subsidies, Bachman wrote. Conventional power fed into the grid costs $0.09 per kilowatt hour. And First Solar isn't the only narrowing in on it. Yesterday, Cypress Semiconductor CEO T.J. Rodgers told a group of reporters that power from crystalline silicon solar panels will be cheaper than coal power by 2012 when transmissions lines, utility bureaucracy and other factors are added in. "We are zeroing in on parity," Rodgers said. "We're going to match PG&E (Pacific Gas and Electric) by 2012. Within a couple of years, the price of solar will be just as cheap." Collins Stewart
Solar Update
16 Dec, 2008
Analyst Report
Industry News
Spanish Solar Market Inventory overhang has been known for months, and was a key factor leading solar module vendors to limit 4Q08 production. Our forecast assumes that the inventory overhang in Spain limits demand from Spain to 350MW in CY09, and that 150MW will be consumed from inventory to enable that market to meet the 500MW feed-in tariff cap. The Spanish market will consume virtually no new module shipments in 4Q08 and 1Q09, which limits demand on each of those quarters. We expect industry demand to be extremely weak in 1Q09, but to then show some recovery in 2Q09. The vendors most negatively impacted by the demand situation in Spain are Suntech and JA Solar. While near-term demand looks weak due to the credit crisis and the situation in Spain , there have been several positive long-term developments in recent weeks, including a strengthening of the Euro (aides $ denominated revenues and margins), President-Elect Obama announcing a pro-solar energy team, and a >50% decline in the price of polysilicon. Dow Corning
Dow Corning Announces Multi-Billion Dollar Investments to Serve Emerging Global Solar Power Industry
15 Dec, 2008
http://tinyurl.com/58utqt
Company News
Investment provides critical raw materials to solar cell manufacturers. Dow Corning Corporation announced today several billion dollars of investment to provide critical materials to the fast-growing solar technology industry. “Dow Corning and our Hemlock Semiconductor joint ventures hope to create a viable solar industry that produces new, high paying jobs, clean power technologies and a revitalized economy,” said Stephanie A. Burns, Dow Corning’s chairman, president and CEO. “We’re committing our resources, know-how and technology because we are confident that solar technology represents a tremendous opportunity for both clean energy and economic growth.” Dow Corning will begin manufacturing high purity monosilane, a key specialty gas used to manufacture thin-film solar cells and liquid crystal displays (LCDs). This investment includes construction of a new monosilane manufacturing facility in Hemlock, Michigan, adjacent to Hemlock Semiconductor Corporation’s polysilicon manufacturing site. The investment also includes up to $3.0 billion at Dow Corning joint ventures Hemlock Semiconductor Corporation and Hemlock Semiconductor LLC. The companies will expand Hemlock Semiconductor Corporation’s existing Michigan manufacturing facility and build a new site in Clarksville, Tennessee to increase manufacturing capacity for polycrystalline silicon (polysilicon) – the cornerstone material used to manufacture most solar cells.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 4 of 6
Market Intelligence Report SOLAR December 22, 2008
Source
Title
Date
Link
Category
EE Times
First commercial Concentrator Photovoltaic technology solar project to be developed in Greece
15 Dec, 2008
http://tinyurl.com/5yovyy
Company News
SolFocus has reached an agreement with Concept, a division of the Samaras Group, to jointly develop the first commercial installation of Concentrator Photovoltaic (CPV) solar technology in Greece. SolFocus is expanding its Madrid-based European operations to open a subsidiary in Greece. Spanning multiple sites, the deployment will have the capacity to produce 1.6 megawatts (MW) of power using the SolFocus 1100S system. The new 1100S achieves panel efficiencies of 25 percent, offering the highest energy yield of PV systems available today. The installation will begin in the spring of 2009 with the first delivery of power expected in the summer. EE Times
Bosch, Q-Cells expand solar capacities
15 Dec, 2008
http://tinyurl.com/5l4bnv
Industry News
The Bosch group announced to invest in expanding the production capacities at its Arnstadt location for crystalline solar cells and modules at ersol Solar Energy AG (Erfurt, Germany) of which Bosch is the majority shareholder. The company said it plans to invest €530 million (about $700 million), almost tripling the company's production capacity to about 630 MWp. The construction activities will commence as early as the current week, the company said. Besides a production line for crystalline solar cells, the company also plans to install a module manufacturing line and to expand its R&D activities. The production in the new facilities is scheduled to ramp up early 2010. The move will add 1100 jobs to the existing 1200 jobs at the company. Q-Cells (Bitterfeld-Wolfen, Germany) also announced to expand its production capacity. The company has assigned an order to design and build a solar module factory to engineering service provider M+W Zander (Stuttgart, Germany). The production line will be built in Thalheim in Germany's state of Thuringia where already several solar technology manufacturers are active and hence have baptized the region "Solar Valley". The Q-Cells factory will produce thin-film modules and offer a capacity of 90 MWp. The company declined to elaborate on the value of the investment. Toledoblade.com
Xunlight, SuGanit obtain alternative energy grants
15 Dec, 2008
http://tinyurl.com/6cfrle
Industry News
Two Toledo companies were among 10 organizations in the state awarded grants to accelerate the development of advanced energy in Ohio. Xunlight Corp. received $995,577 for the online performance measurement of its thin film photovoltaic manufacturing. The company plans to improve its product yield with a system to measure the film thickness and voltage of the solar cells as they are produced. SuGanit Systems was awarded a $999,900 grant to convert biomass to ethanol fuel. The state noted that the local company’s performance in terms of yield, costs, and time was significantly better than its competitors. More than $9 million was awarded through the Ohio Third Frontier program. Venture Beat
Hemlock Semiconductor raises $3 billion to build chip and solar cell 15 Dec, 2008 materials
http://tinyurl.com/6j48tc
Company News
Ever since solar cells took off a few years ago, there has been a shortage of silicon in its purest form. That’s because polycrystalline silicon is used to make both semiconductor chips and most solar cells. Because of that, the Hemlock Semiconductor Group has been able to raise $3 billion to expand the production of polysilicon at two major manufacturing sites. The group will invest that money to build a new factory in Clarksville, Tenn., and to add to another one in Hemlock, Mich. About $1.2 billion will go toward the new site in Clarksville, and another $1 billion to the Hemlock plant. The rest of the money will fund further expansions. Together, those factories will be able to produce 34,000 metric tons of polysilicon per year. Construction will begin immediately. The numbers involved give you a sense of the scale of the business and a sense for how much polysilicon is needed to fuel the world’s growing appetite for solar power. Altogether, the Hemlock Semiconductor Group has announced investments of $4.5 billion in the past five years. From 2005 to 2015, the company will have increased its production capacity ten-fold. The shortage of polysilicon has driven up prices for various kinds of chips and driven a lot of solar start-ups to focus on thin-film technology that doesn’t use polysilicon. The Michigan expansion will add 13,000 tons of capacity to the site, creating 300 permanent jobs and 8u0 construction jobs. The expanded plant is expected to begin production in 2011. In Clarksville, the factory will initially produce 10,000 tons of polysilicon. The site is expected to employ 500 people at first and then 800 at full production of 21,000 tons a year. The construction will create 1,000 jobs. Cormark Securities
Solar Power Headwinds Continue
15 Dec, 2008
Analyst Report
Industry News
Q-Cells had a horrendous week, following the need to cut its 2008 and 2009 guidance amid growing signs that the credit crisis is hitting solar power projects - and hitting them hard. Q-Cells is increasingly receiving requests to delay shipments, providing the strongest evidence to date that inventories of panels are high as project developers curtail the buildout of facilities. The situation is not isolated to Q-Cells. Only a day later, JA Solar slashed its guidance, noting a serious slowdown in orders. While negative for the entire space, the news is significantly more detrimental to Timminco Ltd, as a supplier of UMG-Si to Q-Cells. US Policy Shift: In introducing his picks for energy secretary (Dr. Steven Chu, a Nobel Laureate and director of the Lawrence Berkeley National Laboratory), creating a top White House official on climate and energy policy (Carol Browner, the EPA administrator under Bill Clinton), naming a head of the White House Council on Environmental Quality, (Nancy Sutley, deputy mayor of Los Angeles for energy and environment) and head of the EPA (Lisa P. Jackson, New Jersey’s commissioner of environmental protection), Obama signaled his intention to address global climate change while dealing with economic worries.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 5 of 6
Market Intelligence Report SOLAR December 22, 2008
Source
Title
Date
Link
Category
Thomas Weisel Partners
Alternative Energy
15 Dec, 2008
Analyst Report
Industry News
Solar Has More Problems Than Just The Credit Crisis; Spain's Developers Seem To Be Caught Red Handed In Massive Fraud Scheme Investor focus on Spain has weaned in the last several months following the announcement of the 500MW cap which will dramatically slow the Spanish markets growth from 2008 to 2009. However, a newspaper article this weekend in the El Pais in Spain caught our attention and is a major cause for concern. Over the past few weeks, we have learned that the investigation into fraudulent practices in the Spanish solar sector has turned up that the corruption is much more wide spread than once believed. The ongoing federal investigation in Spain regarding the solar industry may have a negative impact on many of the cell/module producers, especially Chinese producers that sold heavily into the market in 2008. It is our understanding that solar plants that were not in compliance can reapply in 1Q and 2Q of 2009 and will have priority. As a result of this bonanza of greed that occurred in the Spanish region pre-September 28th and the fraudulent project developer activity we could see these fraudulent solar farms take up the entire 500MW cap next year given the new scope of the investigation. We are also concerned that some of the funding for these fraudulent programs could get pulled and over time, these partially installed systems may be dismantled and dumped on the grey market, further pressuring prices. We believe many Chinese producers were selling into the Spanish market in early 2008, as such, the potential lack of any unit shipments into this key market for 2009 is a concern. Spanish Investigation Update: The Spanish solar market grew from just 8MW in 2004 a feat that took just over 4 days in 2008 given the massive subsidy. The 900% boom in the Spanish solar sector has spawned 29,000 facilities creating 24,000 new jobs as well as massive speculation which corresponded with the exceptional returns on the solar projects as well as time of loose lending practices. According to El Pais, at the height of the solar boom there were ads circulating for the sale of connection points for the solar systems at 600,000 Euros per MW, after an investment of only 60,000 Euros by the owner. Installation permits were no different. The diver of the massive speculation was the underlying “investment recovered in 10 years, guaranteed yield for a minimum of 25 years plus tax exemptions; all in all, a guaranteed profitability of at least 12 percent. Behind every solar plant is a financial product. And the other side of sustainability hides ugly habits from the real estate boom: corruption and speculation”, as quoted by the El Pais article. The process was perpetuated by the decentralized nature of the program, with each region responsible for granting and setting the requirements for the project authorization. In each region however there have been no public tenders or transparent decisions. According to the El Pais, the first sign of corruption in Castilla y Leon, where 6 civil servants resigned after it was shown they granted permits to relatives. The same practices are present throughout the other regions of Spain. The CNE, the Spanish energy regulator, has been investigating solar farms since October 31st. Recent press reports indicate that 287 solar farms have been investigated to find out whether they have committed irregularities in accelerating the enrollment process so as to benefit from the old feed in tariff rate pre September 28, 2008. Of the solar plants investigated, 97 were producing electricity and are validly collecting the pre-September 28th subsidy rate. A further 94 plants were installed but still need to be connected and a remaining 96 plants that were filed for the pre-September 28th subsidy are neither connected nor near completion. It is our understanding that solar plants that were not in compliance can reapply in 1Q and 2Q of 2009 and will have priority. Only 33.8% (97 of 287) of the solar farms inspected were validly collecting feed in tariff revenue. Credit Crisis and Inventory Will Take Months to Sort Out: We believe the credit crisis will linger well into 2009, leading to a soft start to the year and continued pricing pressure. In the mean time, a great deal of inventory is building up in key markets and at manufacturing facilities in China and Taiwan. QCell’s recent preannouncement call suggested that Chinese competitors were attempting to dump product into the German market, pressuring prices further. We do not believe Germany alone can soak up all of the excess inventory that has been built. The project finance availability outside of Germany is very weak currently. We believe once the credit crisis eases, it may take 3-4 months for inventory to be flushed out of the system.
• • • • • • • CONFIDENTIALITY NOTE: The information contained in this transmission is confidential and is intended only for the use of the individual or entity named above.
Page 6 of 6
