Local PV Manufacturing in Turkey: Status & Prospects SOLAREX Istanbul 9th – 11th of April, 2015

www.viridis-iq.de [email protected]

Content

1. 2. 3. 4.

© Viridis.iQ

Company introduction Market overview Industrial development perspectives Conclusion

SOLAREX Istanbul

Holistic silicon & PV expertise Company introduction mg-Silicon

>

Poly-Si

>

Ingot

>

Wafer

>

Cell

>

Module

Viridis.iQ GmbH is a project development, engineering and advisory company with interdisciplinary know-how on each step of the photovoltaic value chain:          

Industry development for silicon & PV Interim management & engineering services Project management & owner representation Know-how transfer & training Manufacturing solutions & technology development Process development & optimization Operations & ramp-up teams Customized PV strategies based on in-house market intelligence Integrated cost & financial models for investor promotion Support in project due-diligence for capital providers © Viridis.iQ

SOLAREX Istanbul

3

Selected references Company introduction Region/ Country

Customer type

Scope

Focus on value-chain

Russia

Private Investment Holding

Management of restructuring process

Integrated ingot-cell-module

Germany

Industry Association

Detailed study: Opportunities & challenges for German PV manufacturers

PV production equipment

Trinidad & Tobago

Private company/ Public Industrial Development Corp.

In depth commercial, technical & engineering review for set-up of solar production cluster, w. supply-chain analysis and preliminary environmental assessment

mg-Si, poly-Si, ingot, wafer, cell & module

United Arab Emirates

Private Investor

Engineering & process peer review

Metallurgical silicon

Germany

Private Equity Company

M&A due-diligence on market & commercial aspects

PV production equipment

Japan

Private company

Business development: Turnkey supplier evaluation, process selection & technical-commercial decision support

C-Si cells & modules; integration benefits; various others

Latin America

Utility/ Public Industrial Development Corp.

Detailed feasibility assessment (commercial & technical) for local PV production

Polysilicon to module

Saudi Arabia

Private company

Technology review & audit, operational cost assessment

Ingot-wafer

Iceland

Private company

Owner representative, engineering support, ramp-up and production planning mg-Si

South Africa

Non-government organization

Evaluation of feasibility study from international EPC company

Polysilicon

Iran

Public Private Partnership

Technical assessment (BOM, FUM) and holistic project evaluation

Ingot to module

Saudi Arabia

Industry Association

Study on local PV manufacturing

Integrated PV

Germany

Private company

R&D collaboration for bifacial c-Si process

c-Si cell production

© Viridis.iQ

SOLAREX Istanbul

4

Publications & appearances Company introduction

Solarex Booth A22 (Hall 9) © Viridis.iQ

SOLAREX Istanbul

5

Content

1. 2. 3. 4.

© Viridis.iQ

Company introduction Market overview Industrial development perspectives Conclusion

SOLAREX Istanbul

Turkish Electricity Market Market overview

2,0%

50

1,0%

0

0,0%

growth y-o-y [%]

100

2023 e

3,0%

2022 e

150

2021 e

4,0%

2020 e

200

2019 e

5,0%

2018 e

250

2017 e

6,0%

2016 e

300

2015 e

7,0%

2014 e

350

2013

8,0%

2012

400

2011

9,0%

2010

 PV power plants offer compelling business case for Turkey: high solar irradiation and dependency on fossil fuel imports

450

2009

 TEIAS expects consumption growth of > 60% to 424 TWh in 2023e

Rising electricity demand: Energy consumption [TWh}

 Economic and population growth drive energy demand

source: TEIAS – Turkish Electricity Transmission Company

© Viridis.iQ

SOLAREX Istanbul

7

Turkish Electricity Market Market overview

 Smaller-scale prosumer segment (systems lower risk approach  Innovative higher-risk technologies: DYESOL JV with Nesli DSC with prospective manufacturing capacity of 600 MW

© Viridis.iQ

SOLAREX Istanbul

16

Certification & quality assurance Industrial development perspectives

 Local producers need to implement a stable material supply & production process environment to pass tests from certification bodies (IEC61215 ,IEC61730)  Product needs to be tested in PV plants in order to gain acceptance by international financing institutions: component & system quality assurance, in which the modules and inverters are critical parts

Integrated qualification assurance: Components, e.g. module

Textfeld

Operation & maintenance procedures

Planning & engineering

Performance & energy yield

Construction execution & work

 Solar assets need to perform for >20 years, rigorous performance tests -> risk mitigation

 Existing local PV manufacturers have a competitive edge as they can kick-start qualification procedures and gain head start to prospective new entrants

© Viridis.iQ

Electrical & mechanical safety

SOLAREX Istanbul

17

How to differentiate & protect margins Industrial development perspectives

 Biggest lever on unit-costs is the cell-design (costs in €/Wp)

Cell efficiencies

 Efficiency-gains also have a direct and indirect influence on total systems costs (higher efficiencies reduce relative BOS costs)  Differentiation through specialized modules for regional market applications is a well proven strategy for smaller scale producers

source: ITPRV Roadmap 2014

Products for special applications:

 Downstream integration by project developers with established project pipeline secures internal off-take channel source: ITPRV 03/2013 source: Viridis.iQ GmbH © Viridis.iQ

SOLAREX Istanbul

18

Content

1. 2. 3. 4.

© Viridis.iQ

Company introduction Market overview Industrial development perspectives Conclusion

SOLAREX Istanbul

PV production in Turkey Conclusion

1. Very promising end-market environment: Low LCOE coupled with high dependency on fossil fuel.

2. Initial local content requirements are in place: driver for local production In Turkey?! 3. Administrative procedures need to be simplified to release tremendous PV potential in the country 4. Turkish PV Industry development can be fostered by both, existing producers and local new entrants 5. Local manufacturers: optimize supply-chain and production processes in order become qualified as a supplier to PV power plant developers

6. Scale disadvantages can be compensated through technology & country specific product differentiation

© Viridis.iQ

SOLAREX Istanbul

20

Thank you for your attention! Visit us at Booth A22 (Hall 9) Contact details: Dr. Wolfgang Herbst Executive Director phone +49 (0) 7531 698 4638 mobile +49 (0) 175 7273 943 [email protected]

Register Office: Freiburg - Commercial Register No. HRB 708759 Managing Director: Louis C. Parous III, Wolfgang Herbst