Photovoltaic and Diesel Power Plant Optimization for Isolated Island
Rec Solarcon Matt Daly 10 May10
1. Renewable REC
Energy
Seeing is Believing
Corporation
GROUP
SOLARCON Singapore Conference 2010
Silicon
Sili
Materials May 20, 2010
Matt Daly
General Manager, REC Solar Asia Pacific
Wafers
Cells Modules Systems
2. Renewable REC
Energy The big i t
Th bi picture
Corporation
GROUP
3. Solarcon
Singapore
Conference
The world needs more energy 2010
Supply of different energy sources
Exajoule
2,500
Nuclear
N l
2,000
Renewables
1,500
1,000
1 000
Natural Gas
500
Oil
0
Coal
1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
Source: The Intergovernmental Panel on Climate Change (IPCC), SRES (Special Report on Emission Scenarios), Alt. 1
Definition: exajoule (EJ) is a unit of energy, 1018 joules, often used as unit of measure for world annual energy use
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4. Solarcon
Singapore
Conference
Majority of the world’s population lives within the sunbelt 2010
Definition:
The sunbelt is defined as
equator +/- 30°
kWh/m2/day
0.0 1.0 2.0
20 3.0 4.0 5.0 6.0 7.0 8.0 >8.5
8.5
Source: NASA Surface meteorology
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5. Solarcon
Singapore
Conference
The sun supplies “virtually unlimited” energy 2010
Solar power
Equivalent stock of energy source
e
Uranium
Natural gas
Oil
Coal
Annual energy
demand
E
Fact: There is more energy delivered by the sun in one hour
than what is consumed by the world’s population in one year
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6. Solarcon
Singapore
Conference
The energy payback time is decreasing 2010
Payback time of around one year Energy payback time
Number of years
• Energy payback is the time it takes a
2.5
solar panel to generate the same
amount of energy that was used to
produce it
d
2
For the remaining 24 years of its
guaranteed lifetime, a solar panel will
be ‘energy positive’
b ‘ iti ’ 1.5
1
0.5
0
Source: Alsema et al. (EU Crystal Clear project), 21st European PV
Conference, Dresden, 2006
Mono 2005 Multi 2005 REC 2007 REC today
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7. Solarcon
Singapore
Conference
The concept of grid parity 2010
Price
GRID PARITY
2010 Time
Source: BP Solar
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8. Solarcon
Singapore
Conference
Solar energy is produced near the point of consumption 2010
DISTRIBUTION
Power plant High voltage grid Transformer Low voltage grid Customer
The price of electricity includes generation cost as well as transmission cost
Solar energy can be produced near, or at the point of consumption
Price comparisons should therefore be determined at the point of consumption
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9. Solarcon
Singapore
Conference
Exeptional growth in installed capacity 2010
Global cumulative PV power installed
16 000
14 000
12 000
10 000
MW
8 000
6 000
4 000
2 000
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: Global market outlook for photovoltaics until 2013, EPIA
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10. Solarcon
Singapore
Conference
Production volumes drives cost reductions 2010
Historical module learning curve
100
1980
SD/Wp
dule prices US
10
1990
2000
PV Mod
2006
1
0 1 10 100 1,000 10,000 100,000
Cumulative Module Production (MWp)
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11. Solarcon
Singapore
Conference
PV demand forecast 2010
GW Demand
30.0
28,0
25.0
25 0
21,0
20.0
15,0
15 0 High
Hi h
15.0
13,1 Low
REC estimate
10.0
7,3
12.7
5.0 8.9 10.6
8.4
6.0
0.0
2009 2010 2011 2012 2013
9-10 GW 12-13 GW 16-18 GW 22-24 GW REC Estimate
Source: Barclays Capital, Commerzbank, Deutche Bank, Marketbuzz, UBS
11 Business Confidential Copyright Renewable Energy Corporation ASA. All Rights Reserved All estimates published January to March 2010
12. Solarcon
Singapore
Conference
Investor returns remains relatively high 2010
Equity IRR* 2009
Percent
2010
2011
30 %
Significant increase in
25 % equity returns from
2009 to 2010
20 %
Even with announced
cuts in tariffs, 2011
15 % equity returns are
expected to be above
10 % historic levels
hi t i l l
5%
0%
California California Germany Germany Italy Italy France
(Res) (Com) (Res) (PP) (Res) (PP) (BIPV)
Source: REC estimates
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13. Renewable REC
Energy About
Ab t REC
Corporation
GROUP
14. Solarcon
Singapore
Conference
REC – an integrated PV company 2010
REC Silicon REC Wafer REC Solar
Cell Module Project
Chemical process Casting & cutting Surface treatment Assembly development
Presence across the solar value chain creates
strategic opportunities
Competitive positions improved through:
Transparent cost structure
Technology development & synergies
Applying best practices
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15. Solarcon
Singapore
Conference
A history of growth 2010
NOK million
Start
production in Aquired
10,000 ASiMI
ScanCell 9,156
9,000 8,191
8 191
8,000
Start Aquired
7,000 SiTech 6,426
production in
ScanModule
6,000
5,000
5 000 Start 4,334
production in
4,000 ScanWafer
Established
3,000 Solar Grade 2,454
Silicon
2,000
, 1,270
1 270
713
1,000 432
0 10 25 50 159
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Capacity expansions
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16. Solarcon
Singapore
Conference
REC Silicon 2010
Proprietary deposition technology –
REC Silicon produces silicon materials
Fluidized Bed Reactor (FBR)
for the electronics and the photovoltaic
markets
REC Silicon is a large player in the
global silicon materials industry
– Largest silane gas producer
– Third largest polysilicon producer
– Largest producer of high purity float zone
(FZ) polysilicon
Proprietary REC technology
Energy efficient – 10% of Siemens energy usage
Continuous production
p
Lower cost
Granular polysilicon is easy to handle
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17. Solarcon
Singapore
Conference
REC Silicon – Moses Lake 2010
Strong position in growing
markets for Polysilicon and
Silane
Proprietary FBR
technology with lower
energy consumption and
better form factors
Strong growth in production
from 8 000 MT in 2009
towards 17 000 MT in 2012
Experienced organization
with 25 years of know-how
y
Photo: REC production plant Moses Lake
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18. Solarcon
Singapore
Conference
REC Wafer 2010
Lowering our silicon consumption and
A leading producer of multicrystalline improving the solar efficiency of our
wafers for the PV industry products
Aiming to strengthen the position in the
monocrystalline wafer segment
Industrialized mass production
according to lean manufacturing
principles
Thinner wafers
Thinner sawing wire
New furnace technology
gy
Proprietary technology in each process step
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19. Solarcon
Singapore
Conference
REC Solar 2010
Investing in proprietary technology and
A fast-growing producer of solar cells process improvements
and solar modules
Involved in solar systems integration in
selected segments of the market
Strategic ambition is to develop into a
leading,
leading global solar cell and module
manufacturer, as well as project
developer within selected segments of
PV systems
Highly automated processes
Increasing conversion efficiency
Operational excellence
p
Economies of scale
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20. Solarcon
Singapore
Conference
Manufacturing facilities and capacities 2010
Narvik, NORWAY
,
Cell plant ~180 MW capacity
Glomfjord, NORWAY
Multicrystalline wafer plant Glava, SWEDEN
Moses Lake USA
Lake, ~320 MW capacity
320
Monocrystalline wafer plant Module plant ~150 MW capacity
Polysilicon (Siemens & FBR) ~300 MW capacity
plants ~13 500 MT capacity
Silane gas capacity ~21 000 MT
g p y
Herøya, NORWAY
Wafer plants – totalling ~1 1 GW capacity
1,1
Butte, USA
Polysilicon (Siemens) capacity ~3 5 00
MT. Silane gas capacity ~7 500 MT Tuas View, SINGAPORE
Wafer plant ~740 MW capacity
Cell plant ~550 MW capacity
M d l plant ~590 MW capacity
Module l t 590 it
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21. Solarcon
Singapore
Conference
Doubling the size of the company 2010
REC Silicon REC Wafer REC Solar
MT MW MW (modules)
20,000 3,000 800
15,000 600
2,000
10,000 400
1,000
5,000 200
0 0 0
2009 2011 2009 2011 2009 2011
Production Capacity Production Capacity Production Capacity
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22. Solarcon
Singapore
Conference
REC production plant – Singapore 2010
Wafers
W f ~740 MW
740
Cells ~550 MW
Modules ~590 MW
The construction project is >90
percent complete
CAPEX at completion estimated
at € 1.4 billion – 22% below initial
estimate
Excellent safety record for
construction project with > 17
million man-hours
Photo: REC production plant Singapore
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23. Solarcon
Singapore
Conference
2010
“I'd put my money on the sun and solar
Id
energy. What a source of power! I hope
we don't have to wait till oil and coal run
don t
out before we tackle that.”
Thomas Edison to his friends Henry Ford and Harvey Firestone (1931)
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