Far eastern manufacturers have significantly undercut European manufacturers in the production of crystalline silicon solar cells. Some have described this as a ‘Solar Trade War’. This presents a challenging context for the European Industry as crystalline silicon technologies comprise the bulk of the marketplace. In Wales, this situation has been given particular poignancy by the closure of Sharp’s module assembly in Llay, Wrexham – where imported silicon solar cells were assembled into larger modules. For the UK, the regional context for this industry is emerging. Competition based on labour-cost is impossible so there is a need to discover distinct regional strengths in order to stay competitive. There is an importance to focusing on products which offer a high degree of Gross Value Added. This means focusing on strategic niches and technologies that whilst not perhaps offering the highest conversion efficiency, offer attractive returns through economic competitiveness. There are a range of other PV technology trajectories – thin-film cells and excitonic cells which occupy a much smaller proportion of the marketplace, however, whilst presently less efficient, they promise the potential of continuous production processes that may enable them to be produced more cost effectively. Furthermore, the technical properties of thin film cells lend themselves to capturing diffuse light, whereas silicon solar cells perform better with direct light. This may be considered a good fit between the technology and the weather of the regional market the technology could potentially serve! This paper provides an analysis of Wales regional strengths in PV, the interesting diversity of research into PV technologies within Wales with a view to how the nation can retain competitiveness in this arena. The work will build on extensive analysis and involvement already undertaken CSER for the DECC UK Solar Roadmap.

1. Developing resilience through diversity in
the Welsh Photovoltaic Industry
Gavin D. J. Harper
g.harper@glyndwr.ac.uk
@gavindjharper
www.gavindjharper.com
http://orcid.org/0000-0002-4691-6642
Regional Science Association International – British & Irish Section
43rd Annual Conference & Doctoral Colloquium,
Aberystwyth, Wales
19th – 21st August 2014

2. Catalyst for Research
The main objective of WEST is to develop
skills to aid the utilisation and uptake of new
technologies developed through the LCRI
industrial research projects.
This will ensure that industrial research is
disseminated through both traditional
educational streams as well as directly to
industry through Continuing Professional
Development (CPD).

3. Industrial Advisory Group
• In order to produce Skills & Training
Needs Analysis for Welsh PV Industry, an
Industrial Advisory Group was formed.
• Desk based research
• One-to-one consultation interviews
• Questionnaire
• Networking at events with key stakeholders
in the Welsh PV supply chain
Further details in Harper, Rowlands-Jones &
Irvine (2014)

5. Context for the UK PV Industry
• “Solar PV is a credible asset class that offers greater long-term
returns than cash or bonds, but with a lower risk than
equities or property.”
• “The upcoming election in May 2015 is helping to create a
static policy environment until then, minimizing risk to
investors.”
• “The slowdown in other European markets (in particular
Germany) has created extra sales activity in the UK”
Quotes from Colville (2014b)

6. UK PV Installations

7. Potential Jobs Growth in PV
Projected Manufacturing Jobs
Depend on Global Demand for PV
Projected Installation Jobs
Depend on UK Demand for PV
Graphs taken from Irvine, Jones & Rowlands Jones (2013)
Key recommendations from ESP KTN Solar Photovoltaic Road Map 2013

8. Great Britain is now the most exciting growth market
for solar in Europe. And there are three prime reasons
why the UK should be the destination of choice for
any solar company looking to invest in Europe.
First, our UK domestic market has the greatest
growth potential in the EU.
Second, the UK has a reformed, robust and fully-financed
support framework for renewables, set all
the way to 2020 and beyond.
And third, we are an emerging global hub for
advanced manufacturing.
Greg Barker MP, quoted in:

9. UK solar PV market reaching a record-breaking
1.45 GW of new additions in 2013
Nearly 70% of the UK market was
supplied by Chinese module suppliers
Source: Colville (2014)
BUT

10. Sharp Closure
• Around 615 jobs (including agency
staff) lost with closure of Sharp’s Llay,
Wrexham solar factory.
Photo by Peter Byrne/WPA Pool/Getty Images

11. Sharp Closure
• Wrexham MP, Ian Lucas (2013) has criticised the Coalition’s changing
attitude to renewables, criticising:
• Changes to the Feed In Tariff system
• Changes to the investment framework for renewables
• Talking down the positive potential for renewables to create jobs.
• However, challenges for Sharp potentially have deeper roots.
• Regional uncompetitiveness in silicon PV manufacture not unique to
Sharp, other silicon PV manufacturer closures in West.

12. Sharp Closure
• Looking at the markets
the Wrexham plant
served, it becomes
clear to see why the
plant closure began to
look inevitable.
• Declining EU market
share (due to cheap
imports)
• Dramatic increase in
Sharp’s home
(Japanese) market.
(Where quality
products command a
premium price)

13. Sharp Manufacturing,
Llay, Wrexham Sharp Closure
Crystalline
Silicon Cells
Brought From
Taiwan To Llay
Finished
modules
shipped back to
Japan.

14. The seed of the idea for this paper…
Diverse regional sustainability
strategies: template for the
future or squandered resources?
Harper & Wells (2012)

15. Resilience:
• The ability and capacity of an individual,
community, or economy to withstand, alter,
evolve and respond to shocks and
[un]anticipated changes (Hudson, 2008)
• Resilience as a concept is debated and discussed
by (Adger, 2000; Duit et al., 2010)
•Diversity often recognised as a key component
of successfully resilient systems.

16. Wales: Competing with China?

17. Wales: Competing with China?

18. PV in Wales
Regional Strengths
Manufacture &
Commercialisation
Centre for Solar Energy
Research (CSER) @
OpTIC Glyndwr
Expertise in thin-film,
Cadmium Telluride
cells. Expertise in novel
MOCVD process &
advanced optics.
GB Sol, PV Module
manufacture.
Mounting Systems
Manufacture.
G24i Manufacturer of
dye sensitised solar cells.
Bangor University
Dye sensitised
cell research
Sharp Silicon
Module
Manufacture.
SPECIFIC, Swansea University
Ser Solar, Swansea University
PV Research
Pure Wafer (Reclaimed
Silicon Wafers)
Dyesol BIPVCo
IQE Multijuction PV (Concentrators)

19. Comparing Photovoltaic Technologies
• Thin film technologies compete on the basis of slightly less efficiency, but at a
lower cost / kW
• Slightly less efficient per unit area. But better at capturing diffuse light – so
potentially well suited to Welsh climate.
• Seen as a “substitute product” rarely the default choice.
• Crystalline silicon raw materials cost around 20%. For thin film, figure is 10%
• Crystalline silicon manufacturing technology is “commodified” whereas thin film
manufacturing technology is proprietary.
• Efficiency of cell technologies directly impacts the cost of installed technologies,
improvements in thin-film performance improve competitive position.

20. Thin Film / Excitonic Cells:
Continuous Production?
Crystalline Silicon Cells
“Batch” Production
Thin Film / Excitonic / DSC Cells
“Reel to Reel” Production
Image: Sharp, Llay Wrexham, Silicon Cell Production Image: G24i Power, DSC Cell Production

21. Inline MOCVD Process
• Funded by LCRI “SPARC”
project.
• Chamberless MOCVD
process.
• Creates potential for
“continuous” production of
thin film devices, rather than
“batch“ production.
• World First

22. Capturing other value from PV
• PV Modules are only part of the system. Opportunities to capture
value through balance of system components.
• Other electrotechnical equipment
• Cables (Prysmian)
• Switchgear (Eaton)
• Inverters
• Mounting Systems (GB Sol)

23. Conclusions
• The closure of Sharp’s module assembly in Wrexham was a blow to
the confidence of the Welsh Photovoltaic Industry.
• Some concern also, about other firms relying on crystalline silicon,
based on price competition from the Far East.
• Specialist multi-junction silicon cells, e.g. IQE, Cardiff epi-foundry,
perhaps less sensitive to imports due to niche application.
• However, the Welsh PV sector appears to show vibrant potential for
growth based on a diversity of different technology pathways, which
could offer “resilience” in the face of competition.

24. Conclusions
• Looking at the case of the Welsh PV industry, there appears to be
some validation that diversity in the technologies being developed
within the regional innovation system has led to resilience in the face
of intense price competition.
• Many promising avenues for potential development – technologies in
the process of commercialisation / being brought to market.
• Potential to capture value from balance of system components.
• BUT outstanding challenges to be resolved with market acceptance of
thin film.

25. Conclusions
• Looking at the case of the Welsh PV industry, there appears to be
some validation that diversity in the technologies being developed
within the regional innovation system will allow the sector to be
resilient in the medium-term.
• Some unresolved short-term challenges with thin-film market
readiness.
• Perhaps analogous with hydrogen in (Wells & Harper, 2012).
• Many promising avenues for potential development – technologies in
the process of commercialisation / being brought to market.
• Potential to capture value from balance of system components.

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27. Gavin Harper
g.harper@glyndwr.ac.uk
www.gavindharper.com
http://www.cser.org.uk/
https://www.westproject.org.uk/
@gavindjharper
@CSER_PV
@LCRI_WEST
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