new c pvs report

8/12/2019 New c Pvs Report

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In association with:

CPV International 2013

In partnership with CPV International 2013

(21-22 March 2013), PV Insider has provided you

with an exclusive overview on the opportunities for

commercialisation and expansion in the industry,

so you can develop strategies to win projects and

boost your profitability in 2013 and beyond.

This guide provides you with a glimpse of the

challenges and opportunities being addressed at

CPV International 2013. To find out more about

the only internationally focused CPV event, high

level speakers and key topics please visit:

www.pv-insider.com/cpv-international

Taking CPV in

New Directions: 2013

21-22 March, Madrid


PhotocourtesyofAmonix

4th Concentrated Photovoltaics Conference and Exhibition


2/6To find out more about how to make your CPV business globally competitive, go to www.pv-insider.com/cpv-international 2

Taking CPV in New Directions: 2013

SECTION 1: CPV of Today and Tomorrow

CPV Stakeholders Survey: The results

In 2012 PV Insider conducted a CPV industry survey,

with the aim to understand the concerns, priorities

and challenges for CPV businesses. Over 200

CPV stakeholders responded with 50% of replies

made up of developers, system manufacturers,

and utilities. We asked them 3 key questions that

will help you understand how your competitors

and peers are adapting to market changes, so

you can develop a winning business strategy thatis competitive in 2013 and beyond. You can get

invaluable insight for your business by learning the

results of these 3 questions:

What should be the industrys key focus in 2013?

What areas of your CPV business do you

expect to develop in 2013?

Which 3 countries are key markets for your

CPV business?

Over 50% of CPV stakeholders believed that cutting

costs should be the key focus, this is unsurprising

given the low cost of PV panels. IMS research has

predicted that costs will fall by 16% annually, but the

Educate more customers5%

Survive during challenging times11%

Commercialise technology23%

Find new market opportunities15%

Deploy more installations18%

Improve efficiency24%

Drive down costs79%

Whatshould be theindustrys key

focus in2013?

What areas of your CPV business do youexpect to develop in 2013?

50

45

40

35

30

25

20

15

10

5

0

Cost PartnershipsTechnology Deployment Customers/New markets

key question is how will they compare to PV? If PV

panel costs rise as anticipated then it may be that

CPV becomes even more competitive.

An opportunity in 2013:CPV suppliers and

manufacturers have a chance to drive down

costs by increasing the level of standardisation

of modules, which will enable manufacturing

costs of components to come down and make

CPV more competitive.

Standardisation and its progress in the CPV

industry will be discussed at CPV International

2013(21-22 March), and will be led by TUV

Rheinland, ISFOC and Amonix.

When we asked the community what their business

would focus on in 2013, the largest response was for

developing their technology. This was an interesting

result which suggests individual priorities are not the

same as those for the community. Is this because

cutting costs is not something that can be affected

by individual companies? Instead it could be that

manufacturers and suppliers believe that the key to

cutting costs and increasing volumes occurs through

the development of technology. After all finding new

customers, developing new projects, lowering cost

and developing technology are all related to having a

robust and bankable product.




An opportunity in 2013:Developing and commercialising technology at low cost will be crucial for

CPV to obtain lower LCOE. Discussing this and ways to test this technology will take place at CPVInternational 2013(21-22 March) through multiple sessions, particularly in developing hybrid power

plants. Leading this discussion will be Heliotrop and Voltiq Partners.

Which 3 countries are key markets for your CPV business?

70

60

50

40

30

20

10

0

Germany

China

MENA

SouthAfrica

Greece

Australia

India

Portugal

Korea

Turkey

Mexico

Chile

Brazil

USA

Spain

Italy

Sun Power C7 trackerCourtesyofSu

nPower

The most frequently mentioned markets for CPV

were USA, Spain, Italy and the MENA region. When

considering new markets, the Middle East and North

Africa regions were selected as the region with the

most promise for CPV outside the USA. Even though

European markets are not particularly active at the

moment, they are still favoured over a lot of other

emerging markets. The interest in MENA is validated

by favourable policy, high DNI radiation and the need

to capitalise on solar power in the region. Even though

South Africa is not mentioned as a key market, it is

expected to be a growth area that is already seeing a

hype of activity with the 44MW Touwsrivier plant being

developed by Soitec

An opportunity in 2013:Moving into countries

with high DNI outside Europe and the USA

presents opportunities but also challenges in

project development. At CPV International

2013representatives and decision makers form

Chile, Morocco, Saudi Arabia and China will be

discussing these challenges and suggesting

strategies for deployment in presentations

showcasing the opportunities for CPV projects.




SECTION 2: The Hottest Markets for CPV

ChinaNational Renewable energy targets

Chinas global dominance in the

manufacturing of solar panels has

positioned it well for increasing

domestic installations. Chinas target is to have at

least 11.6% of electricity generated as renewable

power by 2015, increasing to 15% by 2020.Thistranslates to 21GW of solar power by 2015, although

there is no CPV-specific allocation. According to

the China Briefingthe total installed solar power

capacity will reach 50,000MW by 2020.

The core areas for this photovoltaic power

generation will be in Eastern and Central China.

Current capacity

China currently has over 2GW of installed solar

capacity which is predicted to rise to 5GW by the

end of 2012.

Legal and policy framework

Companies producing over 50MW are required to

produce at least 8% of their power from renewable

sources. Local provincial governments have some

freedom in the way they publicise and select

bidders but individual provinces are guided in

implementation by central government ministries

which set the regulatory, economic and industrial

standards for projects.

Responsibilities for national policy and regulation

are divided between the National Reform and

Development Commission (NDRC) for energy

pricing and planning. The Ministry of Finance is

responsible for economic incentive programmes and

construction codes have been issued by the Ministry

of Construction

Renewable energy leaders within China

The head of the national energy coordination task

force is the Chinese premier, newly appointedWen Jiabao. A key agency is the Chinese State

Environment Protection Agency, which plays

a very strong role in project development and

An introduction to the most lucrative CPV countries

environmental impact assessment. It is not known

how and whether the new Chinese premier will

affect the current renewable policy set out in the

most recent FYP.

Other considerations

Foreign companies are limited to a maximum of 66%

debt financing for project capital costs against 80%

for Chinese companies. There are some difficultiesenforcing intellectual property law in China.

PV Insider Analysis:The dry, desert climate is

promising for CPV due to the strong support of

the national government, who are also involved

in owning and developing projects. 2013 may see

several more joint ventures between foreign and

local CPV companies to allow foreign companies

to enter the Chinese solar market. However,

with only small pilot projects installed or under

construction in China, it will be some time before

we see larger scale projects.

Saudi ArabiaNational Renewable energy targets

The Government of Saudi Arabia has

an ambitious renewable energy target

of 10% of domestic-use power to be

generated from renewables by 2020, increasing this

to 41,000MW of solar power by 2030! Achieving this

would save as much as 523,000 barrels of oil per day

for the Kingdom. While there is no specific target

for CPV installations, 16GW has been set aside for

photovoltaic (including CPV) and 25GW is designated

for CSP. Achieving these targets would make Saudi

Arabia the world leader in using solar energy for

power generation.

Upcoming opportunities

There will be two rounds of bidding for the first

4.7GW of solar power projects over the next two

years for which the minimum project size is 5MW.

In the first bidding round, 1.1GW of PV and CPV will




MoroccoNational renewable energy targets

The Government of Morocco has seta high target of 42% installed capacity

from renewable energy sources by

2020-approximately 6,000MW. From this 14% is

allocated to solar power although there is no CPV

specific allocation.

Set up prior to these targets, the Moroccan Solar

Plan (launched in November 2009) aims to establish

2,000MW of solar installations by 2020.

Current installed CPV capacity and manufacturing

In 2011 Isofoton developed and installed a 30KW

HCPV installation connected to the grid and

funded by the European Commission. In 2011,

Schneider Electric and Soitec signed an MoU with

the Moroccan Agency for Solar Energy (MASEN),

to promote Moroccos manufacturing capacity for

solar components as well as to develop two 5MW

pilot CPV projects. The first of the 5MW CPV pilot

plants is to be built at MASENs Ouarzazate site

and scheduled for completion in 2013. The project

partners will also look at the possibility of setting up

a PV module assembly facility in Morocco.

Key players

Moroccan Agency for Solar Energy (MASEN):

Created to implement the solar plan in the renewable

energy policy. MASEN oversees all bidding for

projects, and bidders are evaluated on offering the

lowest tariff whilst fulfilling minimum technical

specifications. The developer will then have a 25

year licence to build, own, operate the plant then to

transfer it to MASEN. It is possible MASEN may take

an active role in assisting in financing solar plants.

Societe dinvestissements energetiques (SIE):A

1 billion dirham fund has been allocated to finance

energy projects and promote renewable energy in

Morocco.

The Moroccan Agency for Development of

Renewable Energy and Energy Efficiency

(ADEREE):This agency is responsible for overseeing

the development of renewable energy and promotingrenewable energy in Morocco.

Legal and regulatory framework

Power from solar plants will be sold through a

be available, with this increased to 1.3GW in the

second round. Round two is scheduled to begin in

the third quarter of 2014.

After the second round of bidding the government

will announce a Feed in Tariff which will be divided

by renewable energy source. It is unknown as to

whether there will be a Feed in Tariff specific to CPV.

In January 2013 Mecca city will choose companies

from the tender process to operate and own power

plant and production facilities. This will include

110MW of solar according to the Mayor of Mecca,

Osama al Bar.

Key players

The Electricity Co-Generation Regulatory

Authority (ECRA):The body currently responsible

for regulating electricity and water desalination.

The National Industrial Cluster, Solar programme:

The solar cluster is doing considerable work to promote

and develop projects to bolster system component

manufacturing within the kingdom, especially of

production of ingot wafers and cells on the local market.

KA CARE:Established in 2010, it is the lead agency for

national policy on and implementation of renewable

energy. As well as formulating policy it is responsible

for coordinating other agencies on investment, permits

and developing a market conducive to renewable

energy investment and development.

PV Insider Analysis:Saudi Arabia proactively

welcomes solar power because it is a commercially

viable option for power and wealth creation.

However, CPV will need to work hard to competewith conventional PV prices and the storage

offered by CSP. Demonstrating a lower LCOE and

proving the added advantages of CPV through

job creation may go some way to increasing

its popularity in the Kingdom. Establishing pilot

projects and demonstrating performance may

improve recognition of the technology and increase

project size and number.




Law 19.240 allows for a tax credit for solar projects

in the regions of Arica and Parinacota. The tax credit

can reach up to 35% of a projects total capital cost.

Key players

Comision asesora para el desarrollo Electrico/

Electricity Development Advisory Committee

(CADE): This body has been appointed to advise

the Chilean government on how to best increase

electricity generation.

Sistema de Evaluacin de Impactos Ambiental

(SEIA): The Chilean environmental agency has

approved 685MW of PV and solar thermal projects,

with another 1.900MW awaiting permits.

Provincial governments in high DNI areas such as

Antafogasta and Atacama will be playing a key role in

project development.

Other considerations

Power generation in Chile uses four separate grid

systems. The Central Interconnected System (SIC)

is the central regions grid, and accounts for 68.5%

of national generation and serves 93% of Chiles

population.

Unfortunately the lack of energy infrastructure in rural

areas with high DNI hampers project development

and efficient transmission to the grid.

PV Insider Analysis:The difficulties with rural

grid infrastructure could pose a problem for CPV

especially as there are few storage opportunities.

However, the Atacama desert and other regions

present the highest DNI rates in the world .The

large renewable energy target with increasinglycompetitive LCOE means that although in its

early stages, CPV could become a key energy

player in Chile.

CPV International 2013will be discussing the

most burning questions about emerging markets

for CPV and how to commercialise this high

potential technology.

To find out how your business could benefit from

new opportunities for CPV, go to:


double PPA structure whereby electricity is sold to

MASEN. The Office of National Electricity will then

pay MASEN for electricity at the rate it has set, with

MASEN funding the difference in pricing.

PV Insider Analysis:CSP already has a strong

profile in Morocco. For CPV to compete against

CSP and PV, proving the local capacity-building

advantages of CPV is crucial. Developing

national capacities for component and module

manufacturing would be a big win for CPV.

However, as pilot projects are still in their infancy

it will take some time for the CPV market in

Morocco to mature.

ChileNational Renewable energy targets

Chiles current aim is for 10% of

electricity produced for the grid to be

from renewable energy sources by

2024. This is a decrease from a 20% target made

two years ago.

Current installed capacity

The Chilean solar market is still in the early stages

of development. Although there are 883MW, or

73 renewable energy plants operating in Chile, the

country has only 1 large grid-connected solar plant

in operation, the Calama Solar 3 plant in Atacama.

Calama Solar 3 is operated by the company

Solarpack and Chilean state-run copper producer

Codelco.

Timeline

Due to the lack of Feed in Tariffs or strong

promotional policies, there is no specific timeline for

project development.

Policy and regulatory framework

The SEIC has approved 685MW of PV and solar

thermal projects with another 1,900 MW awaiting

permits. CPV projects do makeup a small number of

projects, although the exact amount is not known.

Companies with over 200MW of installed power

producing capacity need to have at least 10% of

their energy production coming from renewable

energy sources or face fines.

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