Professional Documents
Culture Documents
To achieve these goals, MBIPV Project is currently working with MPIA to set up a competency
based PV training programme, and a quality scheme called ‘Approved Service Provider’ (APVSP).
We aspire for our local PV service providers (PVSP) to provide quality services locally and beyond
Malaysia. As such, we offer opportunities for our PVSP to hone their skill through the National
SURIA 1000 programme.
We also invite international PV companies to collaborate and work with our property developers
through the ‘SURIA for Developer’ programme. Our aim is to create the first property development
which incorporates BIPV as a standard feature, to achieve our PM’s aspiration of Wawasan SURIA.
We are also working very closely with MIDA to make international PV manufacturers to select
Malaysia as the preferred location for their manufacturing facilities. Malaysia can provide many
attractions that can make any decision to relocate to Malaysia as a wise decision. But, our challenge
has always been to create adequate awareness of what Malaysia can offer.
Therefore, it is my greatest wish to see the Malaysia PV Industry Days become a fruitful platform
for international and local PV partners to find business opportunity, and to facilitate your plan to
establish PV manufacturing facilities here in Malaysia.
S 31 Overview of Japan’s PV
Industry – Izumi Kaizuka
33 Global PV Industry
Development Since 15 Years –
Daniel Ruoss
About us
MEDIA SPONSOR SPONSORS
(www.roofandfacade.com)
• Bandar Eco-Setia Sdn Bhd
FrontMedia Network Sdn Bhd • Envision Sdn Bhd
Julie Chong Cheng Sim • HUBER+SUHNER (Malaysia) Sdn Bhd
julie@medialink-mail.com
• Malaysian Industrial Development Authority (MIDA)
Dr Parvathy Subhadra
paru@medialink-mail.com • Mitsubishi Electric Asia Pte Ltd
• Malaysian Photovoltaic Industry Association (MPIA)
Benjamin Ng
ben.ngha@gmail.com • Multi-Contact (South East Asia) Pte Ltd
• OC Oerlikon Balzers Pte Ltd
Pamela De Silva
production@medialink-mail.com • Pegasus Business and Market Advisory Sdn Bhd
• Phoenix Solar Pte Ltd
MEDIA CONTRIBUTORS • Solamas Sdn Bhd
Ir. Ahmad Hadri Haris; Daniel Ruoss; Wei-nee Chen; • SolarWorld Pte Ltd
Malaysian Industry Development Authority (MIDA); • Sputnik Engineering AG
Greg Watt; Izumi Kaizuka; Shamsudin Khalid • SunTechnics Pte Ltd
The MPIA hopes that this development will bring about an expansion of the PV market.
Inconsistent quality of past installations has added to the perception that solar is not only
expensive but also unreliable. The MPIA seeks to rectify this notion and improve the situation
by assisting the industry to ensure quality for the systems being applied. Tax and duty issues
continue to hinder competitive pricing when compared with more established markets in
Europe, Japan, or the US.
The MPIA looks forward to the abolishment of duties and sales tax for relevant components
of PV systems. Lower prices will certainly go towards motivating an even larger portion of
the population to adopt PV as their way of contribution to the environment preservation.
With this in mind, we look forward to further adoption of photovoltaic (PV) power in both
commercial and government projects in the near future. We look forward to bright and sunny
days ahead.
Shamsudin Khalid
President
Malaysian Photovoltaic Industry Association
FORMED in the Year 2006, Malaysian Photovoltaic Industry Association, MPIA, is committed to bring
effectiveness and sustainability in the implementation of Photovoltaic Technology for successful &
reliable Renewable Energy Projects implementation in Malaysia with consistent quality control.
The PV Technology is a renewable energy solution that helps us in energy conservation to combat
Global warming and Climate change. With support from all the stakeholders, MPIA can become
instrumental in ensuring PV to be an effective and sustainable solution.
SECRETARIAT
PERSATUAN PERUSAHAAN FOTOVOLTAIC MALAYSIA
Unit 510, 5th Floor, Block A, Kelana Business Centre,
No.97, Jalan SS 7/2, Kelana Jaya, 47301 Petaling Jaya,
Selangor Darul Ehsan
Tel : +603 78809499, Fax : +603 78809433
Email : sivag@bestium.com.my, aznura@bestium.com.my
Web Page : www.mpia.org.my
Global and
National
Photovoltaics
Business
• From page 9 i n v e s t e d g o t o ? Ta k e
will exceed those in machinery and Germany as an example,
in vehicle manufacturing! PV and Germany has a well
RE in general, is a job spinner and designed FiT pro-
brings great benefits to the country. gramme, including wind,
But we need to ‘fuel’ this spinner, biomass, PV, hydro and
and the ‘fuel’ today is a well geothermal. The pro-
designed, economically viable feed- gramme started in 2000,
in-tariff (FiT) policy. Today more and in a recent review it
than 40 countries have a FiT policy was presented that the
introduced. Some country benefit so far outweighs
programmes offer an economically the cost (source:
viable FiT, e.g. Germany, Spain, Bundesministerium für
South Korea, Italy, France, Greece, Umwelt, Naturschutz
and many more. Other countries und Reaktorsicherheit,
have a FiT but either timeframe of Figure 1: 10.5 kWp semi-transparent BIPV report on EEG
FiT is too short (e.g. Thailand – application at PTM-ZEO. experience, June 2007).
7 years only), or the cap on And what is the
the maximum cumulative installed significantly, create jobs, ensures status of PV policy in Malaysia? As
PV capacity is set too low energy s u p p l y, guarantees per August 2007 grid connected PV
(e.g. Switzerland, Portugal, investment security and grows the in Malaysia enjoys the following
Luxembourg), or the available tariff local PV i n d u s t r y, drives benefits:
is too low to make the PV system technological innovation and • Permission to connect such power
economically recoverable within the provides fair market conditions for generating equipment to the
15 to 20 years (e.g. Norway, Sweden, REs. The question is “Do the TNB’s low voltage distribution
Turkey, and other countries). benefits for the country supply network (240/415 volts 1
But a well designed feed-in tariff implementing a FiT scheme phase / 3 phase).
scheme is a policy to change the outweigh the cost resulting from the • Net Metering for TNB “purchase”
world. FiT reduces CO2 emission FiT policy?” Where do the billions of the PV generated electricity,
where the interconnection may be
at the point of TNB supply
connection (“Direct Feed”) or at
the user ’s internal distribution
board (“Indirect Feed”). Under
these conditions the PV generated
electricity sale equates to TNB
valuing the PV generated
electricity at the same rate it sells
the electricity to its customers.
• Accelerated Capital Allowance
(ACA) for commercial investors in
BIPV installations under the “RE
for own use” category of SREP
fiscal incentives.
In the pipeline; MBIPV project
Graph 1: Investment trends for manufacturing along the PV value chain. through the Ministry of Energy,
Wa t e r a n d C o m m u n i c a t i o n , h a s
proposed for PV incentives to be
enhanced through the National
Budget, to make it more attractive
for Malaysians to invest in PV
systems.
Over the last two years the
annual installed PV capacity in
Malaysia was in average 1 MWp to
1.5 MWp including off-grid PV
applications, which represent
approximately 70% of the total
i n s t a l l e d P V c a p a c i t y. S e v e r a l
initiatives in off-grid PV
application, such as ‘Schoolnet’, or
island electrification with hybrid
systems (Pulau Kapas), or projects
for rural electrification in Sabah
and Sarawak, initiated mainly by
Government agencies and TNB.
To d a y grid-connected BIPV
Graph 2: Profit trends for manufacturing along the PV value chain. applications are under the
• See page 12
• From page 12 profit tends to be high and for PV available considering a BAU
highest profit followed by solar module manufacturing profit tends (business-as-usual) scenario (35%
cell manufacturing. Module to decrease slightly, because any growth rate) for the development of
manufacturing tends to result in cost reduction is used to maximize the global market – see graph 3.
less profit than the upstream to a certain level the profit for the The annual revenues in 2010 are
manufacturers but profit still front-end manufacturers first. estimated to exceed US$40 billion
exceeds those in BOS manu- In 2007, FOB (free on board) (RM150 billion) and could reach
facturing or services sector sales price for high quality US$380 billion (RM1,400 billion) in
(installation and consultation). crystalline PV modules from China 2020 estimating an annual market
Yes, the future is promising for ranges from US$3.20-3.80/Wp of 120-140 GW – replacing over
PV business. Established PV (RM11.5-13.7/Wp) for an order of hundred to hundred fifty big size
companies are expanding around one to five 40ft containers nuclear reactors installed per year.
significantly their production (100 to 500 kWp). Production cost For reference and to provide a
capacity and numerous new is estimated at US$2.60-2.80/Wp perspective on the potential market
companies are entering the PV (RM9.4-10.1/Wp), which result in size of PV; in 2007 thirty three
business worldwide. profits of 20-35% for module nuclear reactors were under
In some business, e.g. inverter manufacturing. construction totalling 27 GW.
and module, competition is In a few years, due to decreasing How are we going to get there?
aggressive and almost every month, silicon prices the module production By economies of scale and new
new market entrants are trying to cost should decrease as the cost developments – upscaling and
get a share of the booming PV reduction in silicon manufacturing commercializing new technologies
market. But before one rushes is passed on through the PV value are keys to price reduction and
heedlessly into PV business, one chain. Photon International further market growth.
has to understand and consider Consulting estimated production In the next few years the
some important (but not limited) cost of high-quality crystalline PV spotlight will be on the European
requirements: modules in 2009/2010 in the range and US market, and demand will be
• Company should understand the of US$1.50/Wp (RM5.4/Wp). high thanks to Governments which
PV value chain and the market Cost reduction in end products understood the benefits of an RE
drivers and have a regional or will open new PV markets and add policy (including PV) and hence,
international network for to the increasingly attractive coming up with a long-term
procurement and sale of products. business environment. This leaves perspective to achieve a sustainable
• Establish strong collaborations plenty of room for future growing national energy policy.
with experienced partners, e.g. profit and new companies entering In the next two to three years,
JV, technical collaboration (MoA), the PV business. the industry should try to
and others. Here, an increasing number of consolidate, as today the market is
• Succeed in long-term supply companies are targeting the fast overheated, and this will help
contracts of your raw product. public listing to attract quick cash companies to improve their
• Have reliable power supply, low and achieve their aggressive and strategies over the next ten years.
electricity tariff and good access ambitious growth targets, e.g. We will have more IPO’s, new
to talented manpower. Chinese companies. partnerships between established
• Reduce dependence on export Other companies are attracting PV enterprises and newcomers to
market only. Create a sustainable venture capital or private equity to tap into the network and experience
local home market. fund their business strategy and a from a strong industry partner,
It is crucial to do extensive due few PV companies are closed for some bankruptcies may be possible,
diligence on market and close outside investment and still several companies with idling
competitors. Furthermore, one has perform very well. production equipment and few
t o a s s e s s o n e ’s o w n f i n a n c i a l There are different approaches; mergers & acquisitions.
capabilities, preferred location, each with its benefits, to diversify To d a y t h e h y p e f o r P V
infrastructure, accessibility to into PV business, either way the technology and business is at its
ports, etc. and come up with a sound question for new market entrants is peak, and the PV industry should
SWOT analysis leading to decisions often “where to enter the PV be mindful to use the momentum
before venturing into PV business. businesses”. and carry the positive support from
Support on above analysis can be As presented in figure 2, in back- the public and Government into a
obtained from several international end manufacturing (PV modules, long term sustainable business.
and local consulting companies and BOS) and system integration, an Once grid-parity is achieved i.e.
also from MBIPV team. Please feel increasing numbers of players are PV electricity price is competitive
free to contact any of the MBIPV established and investment is low, to conventional energy generation,
team, if your company has the whereas in silicon manufacturing the PV market will sky-rocket and
resources to invest in PV (see graph only few companies dominated the open avenues for new technologies
1) and if you are interested to enter market, but investment is very and innovative manufacturing
or diversify to the PV business in high. Wafer and PV cells production concepts to upscale. The industry
Malaysia. Also, please visit requires a high investment but less has to drive the market in the short
www.ptm.org.my/bipv to download than silicon, but competition is to mid term and not policy makers,
our facts & figures on business getting stronger as more companies who today have strong muscles
opportunities. establish in this sector of the value (commitment) to support PV, but as
Looking ahead, for front-end chain. we all know muscles tend to weaken
products (e.g. solar cells, wafers), But there is plenty of business over time.
• From page 16
production facility in Kulim High-
Tech Park, Malaysia. Currently the
production facilities are under
construction and production should
be operational in mid 2008. Other
local manufacturers in PV products
cover the production of garden lamps
(up to 50,000 pieces per month) and
street safety products for Middle East
countries. Malaysia has many
opportunities for local manufacturing
and such opportunities have yet to be
explored and understood by global PV Figure 2: Kulim High Tech Park, Malaysia.
companies. Today semi-conductor globally for venture capital and private been and is still talking about the
companies are well established, e.g. equity investment and investment in silicon bottleneck, which hindered the
in Penang, Shah Alam and Kulim, PV (21%) is the second largest after rapid expansion of the PV industry. The
and have benefited from the Biofuels with 34%. Considering these problem seems to be properly
conducive and profitable business and facts and estimating that around 60% addressed and more than 120,000
manufacturing environment in of the VC and PE money goes into tonnes of annual silicon production
Malaysia. PV companies with interest California and around 30% into the ‘PV capacities will be on-line from 2008
towards front-end manufacturing Valley’, more than US$180 million onwards, able to supply a demand of
have the potential of strong earnings (RM648 million) of VC and PE at least 10 GW annually. The industry
from the existing skilled labour and investment went into new companies is positive that the issue has been
established manufacturing and new technologies in the ‘PV Valley’ addressed and solutions are in place to
environment for silicon, wafer and in 2006 alone. resolve this bottleneck, and forecasts
cell production. PV is BIG business! Today many that the growth rate of PV will resume
Similar to the clustering of semi-con Industrial Development Agencies the escalation rate as before. But
companies in Malaysia, a growing responsible for Foreign Direct what’s next? Bottleneck on human
number of PV companies is Investment (FDI) are participating in capital? Yes, this is most likely! But
establishing manufacturing in Eastern exhibitions and are collaborating with some say, let’s harvest today – the
Germany, e.g. Thuringen, Berlin and respective country chambers of future is now and is definitely PV. But
Saxony. Today Eastern Germany has commerce to woo international PV we have to be cautious and should
attracted significant number of parties to the country. And exhibitions reconsider our main objectives ‘to bring
companies for local manufacturing, with focus on industry and products are the cost down’ and ‘serve the global
thanks to generous incentives from the mushrooming. Soon we will have a market, including also undeveloped
European Union and State section or day dedicated for investors countries’.
Government for production facility and to inform about local PV The focus shifted in the last 5
manpower. The cluster in Eastern manufacturing in respective countries. years towards the high-profit
Germany has already been renamed as Until now, this is not addressed and markets in Europe and the USA and
Solar Valley; since 1996 the Solar may become an important platform in the off-grid market is given less
Valley has created more than 20,000 the future. The race is on – everyone attention. Profit is high in grid-
jobs in tooling business (related to PV) has recognized the huge potential of PV connected markets with a feed-in-
and along the PV value chain. And in and revenues, especially the tariff (FiT) programme and every
2007 and 2008 alone, 15 new solar fabs manufacturing of PV products and industry player like to profit as fast
will be built, creating up to 10,000 new exporting the final products to the as and as much as possible. What if
jobs. booming markets. Countries not known policies change and markets become
Another cluster location for on the PV map so far, but known for less attractive?
growing PV manufacturing is Oregon, abundant solar sources, such as Hopefully there will be new FiT or
USA, with focus on silicon and cell Singapore, United Arab Emirates (with Renewable Portfolio Standard (RPS)
manufacturing because of low-cost Sharjah, Fujairah) and Mexico (Baja markets, but we have to keep our
hydro power, very stable power supply California) are wooing international objectives in focus and achieve PV
and highly skilled labour from existing PV companies and attracting an system cost of less than US$3/Wp
semi-conductor industry. Start-ups increasing number of them with (RM10.8/Wp) from 2010 onwards, as
with focus on 2nd and 3rd generation of attractive packages, including up to 50 once promoted to our politicians. The
PV cells concentrate in the Silicon years tax holiday (UAE), equity industry needs to cut back their high
Valley in California. The Silicon Valley participation (Singapore) and low-cost profit and reduce system cost to
is attracting the highest venture labour (Mexico). But for investors it is sustain a long-term development of
capital (VC) and private equity (PE) becoming increasingly difficult to the PV market in order to achieve
investment and investors have differentiate between all the offers, all grid-parity, and also to be able to
renamed the Silicon Valley to ‘PV of them appear to be an eye-catching supply the off-grid market in rural
Valley’. A recent report by the United bouquet of flowers but start to wither areas again.
Nations Environment Programme after few days. Adding to the difficulties The industry has to balance the
(UNEP) concludes that in 2006, US$4.9 are ‘consultants’, who act as middle- market development with the
billion (RM17.6 billion) VC and PE man trying to make their cut and use socioeconomic impacts; which is
investment were poured into new clean the opportunity to ride the ‘PV business somewhat a delicate balance between
energy companies and renewable wave’. serving ‘the have-not’, e.g. undeveloped
energy (RE) projects in the USA. The For the past two years and possibly countries and ‘the investors’ interest’,
US is the largest single destination inclusive of next year, the industry has e.g. FiT markets.
Turn sunlight into electric power. Let the sun’s energy heat your water. Produce
sustainable energy from biomass. Use wind energy to power an off-grid location.
The possibilities are endless. Around the world, SunTechnics renewable solutions
are providing clean energy wherever it is needed. Call SunTechnics today for the
perfect turnkey solution customized to power your needs.
Contact us:
info-apac@SunTechnics.com
www.SunTechnics.com
The PV Industry
Value Chain – An
International
Snapshot
• From page 25 expansion of PV industry. China has in the first four months of the year
ambitious plans towards developing the through the Canadian province’s new
from the end of 2007. Mitsubishi will then renewable energy sources, however, coal is Renewable Energy Standard Offer
achieve the highest performance level in expected to remain the principal source of Contract Program. The program officially
the industry, which will increase the energy in near-term. went live late last year but did not
electricity production of its clients, execute its first contracts until 2007. It
commented the Japanese firm. offers PV projects the highest price for
AMERICA: renewable energy fed into the Ontario
First Solar expands manufacturing in grid at a non-declining 42¢ CAD
Malaysia Tucson, USA: SOLON to start module (RM1.38) per kWh over 20 years. So far,
First Solar announced that its board of manufacturing towards End of 2007 the program has attracted mostly large-
directors has approved the construction SOLON AG, one of Europe’s largest scale projects, including a 9.12 MW
of an additional manufacturing plant in manufacturers of solar energy systems has project to be installed southwest of
Malaysia with an annual production opened a new subsidiary in Tucson, Toronto by large US-based project
nameplate rating of 120 MW, Arizona. SOLON will commence module developer and installer SunEdison LLC
representing an investment of manufacturing operations in Tucson (US) and Canadian joint-venture partner
approximately US$150 million (RM510 in late 2007. The company will produce high SkyPower Corp. This is the first of
million). The additional production efficiency solar modules, and provide solar several joint projects being pursued by
capacity of the new plant is scheduled to integrated design and installation services the two companies that has been
come on line in the first half of 2009. to large-scale commercial, municipal and approved by the OPA, which caps the size
utility customers throughout the United of any given project at 10 MW. The
Kazakhstan drafts Renewable Energy States. companies have said they intend to build
legislation at least 50 MW by 2009.
Kazakhstan could become the next General Electric, USA: The quest to
country to pass legislation supporting the develop low cost solar PV technology USA: Nearly 90% of Americans think
development of renewable energy after GE Global Research Center recently was solar should be new home option
Government ministries declared support awarded a three year, US$46.7 million According to a recent Roper survey
for the development of draft legislation (RM160 million) program from the commissioned by Sharp Electronics
regulating this new industry. Ambitions Department of Energy to develop low-cost Corporation, nearly 90 percent of
for RE in Kazakhstan remain fairly solar PV technology. This new program was Americans think that solar electricity
modest, the power sector modelling granted through the “Solar America should be an option for all new home
carried by UNDP shows that 1,000 MW Initiative”, which is a part of President construction, up significantly from one
of small scale hydro power and 2,000 MW Bush’s Advanced Energy Initiative. The year ago (79 percent). Three-quarters of
of wind power can be constructed by goals of this project are to decrease the cost survey respondents perceive solar power
2024. Nevertheless, the significance of of manufacturing and distributing solar to be more important than ever, the
this is immense in a country whose energy to ultimately report says. The survey was conducted
economy is so linked to the hydrocarbon bring the cost of solar in May 2007 among 1,004 adults to
markets. As a consequence Kazakhstan energy to parity with measure their perceptions of solar power.
is the largest per capita emitter of the grid. GE will be “More and more, consumers are
greenhouse gases in Central Asia. looking at three interested in solar energy, as the results
d i f f e r e n t of this survey clearly show. The message
PV industry in China confronts huge technologies for the from consumers to homebuilders is
potential risk solar cell: high clear—builders can differentiate
Production of solar cells in China has efficiency silicon- themselves while satisfying customer
shown an impressive growth over the last based cells, moulded needs by offering solar electricity on any
few years. But the PV market overseas silicon wafers, and home they build,” said Ron Kenedi, vice
remains unsatisfactory in contrast to the flexible thin films. president, Solar Energy Solutions Group,
vigorous expansion Sharp Electronics Corporation.
of production Santa Clarita, USA: BioSolar builds bio-
capacity. Currently, based prototype solar cell USA: Lockheed Martin solar arrays to
German market – BioSolar™ Inc., developer of a be launched to space station
that’s the world’s breakthrough technology to produce thin The third of four pairs of massive solar
largest consumer of film, flexible solar cells on bio-based plastic arrays and a second Solar Alpha Rotary
solar cells – and substrates announced that the company Joint (SARJ), built by Lockheed Martin
other overseas has achieved another milestone in its at its Space Systems facility in
markets are previously announced development Sunnyvale, Calif., was launched aboard
growing slowly. As program to create the world’s first bio-based the space shuttle Atlantis to the
over 94% of the solar cell. BioSolar’s bio-based proprietary International Space Station (ISS) in
China’s solar cell films can withstand the environment of the June, 2007. The Space Systems ISS solar
products are photovoltaic lamination oven, and working arrays are the largest deployable space
exported, this slow solar cells can be made using BioSolar’s bio- structure ever built and are by far, the
rate of growth in foreign lands comes as based film as part of the packaging for most powerful electricity-producing
important reason why Chinese PV industry crystalline silicon-based PV modules as arrays ever put into orbit. The eight array
is at risk. Unlike developed countries, no well. The three fully functional prototype wings were designed and built under a
specific subsidy policy is provided by China solar cell modules using BioSolar’s US$450 million (RM1,550 million)
for its PV industry. It is still far behind the proprietary bio-based backsheets contract from the Boeing-Rocketdyne
developed countries, for example Japan and performed to the cell specifications. Division in Canoga Park, Calif., for
Germany, in both scientific research system delivery to the Boeing Company and
and infrastructure. Therefore, the Chinese Canada: Ontario inks over 50 MW of NASA. When fully deployed in space, the
govt. should offer incentives and subsidies PV projects in first four months active area of the eight wings, each 107
for solar energy-based electricity generation The Ontario Power Authority (OPA) by 38-feet, will encompass an area of
since this will encourage demand in reports that it has approved 27 contracts 32,528 square feet, and will provide
domestic PV market and also ensure the for over 50 MW of PV generating capacity power to the ISS for 15 years.
www.solarmax.com
Always a sunbeam ahead
Market Movers
of Solar
Photovoltaics
in Malaysia
• From page 28
commitment towards solar BIPV as one
of the renewable energy strategy
outlined for energy security and
climate change mitigation efforts by
Malaysia.
The Prime Minister, Dato’ Seri
Abdullah Ahmad Badawi shared
passionately with his people, his vision
he coined “Wawasan SURIA” in which
he aimed to replicate what he saw in
his recent trip to Osaka, Japan.
According to Dato’ Seri Abdullah, he
saw solar PV systems aesthetically
integrated with both residential and
commercial buildings and generating
clean electricity at the same time. A
sight which was rapidly transformed to
a vision for a nation blessed with
abundant and consistent sunlight.
The second call for SURIA 1000 is
only for residential with a target PV
capacity of 60kWp and maximum
rebate of 70% to the bidders. All
applications for SURIA 1000 must go
through the listed PV Service Providers property development projects BIPV systems installed by the year
( h t t p : / / w w w. p t m . o r g . m y / b i p v / • Can either be landed or non-landed 2010. Although the market for solar
APVPS.html) which act as a 1-stop properties. BIPV is largely in embryonic stage, the
BIPV centre for the bidders. • Maximum of two (2) property MBIPV Project focuses on developing
Commercial bidders would be able to developers will be selected, subject to soft infrastructure to sustain BIPV
bid from the third call for SURIA 1000 targeted BIPV capacity. growth in the country. SURIA 1000 is
which will be from 3rd December 2007 • Interested housing developers (or the forerunner of bigger things to come.
to 1st April 2008. architects/contractors) can submit But first it must succeed.
the application (form, guidelines,
SURIA for Developers T&C will be available from 16th July
Recognizing the influential role of 2007) that includes: If at first you do not succeed,
property developers in changing the • Profile of the developer. you try again..
lifestyle of the people, the Prime • Development concept, including Tunku Ahmad Burhanudin is among
Minister Dato’ Seri Abdullah masterplan indicating the allocated the 25 bidders who did not succeed in
announced a special financial incentive parcel for SURIA development, securing the bid for the first call for
programme only for the property approved planning permission, SURIA 1000. According to Tunku
developers. converted land title. Ahmad, “I understand why I did not
The “SURIA for Developers” is a • Architectural drawings and concept succeed; I need to be more competitive
special one-time programme which is of solar BIPV (compulsory), and with my bidding. My request for
part of the SURIA 1000. The objective passive or active energy and water financial contribution from the
of the programme is to promote the efficiency features (optional). Government is too high”. In fact,
development of sustainable solar BIPV • Indicative cost of solar BIPV system. Tunku Ahmad has pledged that he
housing in Malaysia. • Solar BIPV capacity for each unit of will not give up bidding for each call
SURIA for Developers will provide house must be minimum 4kWp and until he finally succeeds in securing
financial incentive of 3 million maximum of 10kWp, subject to a his share for electricity generated
Ringgit Malaysia for a target PV minimum total of 100kWp per from the sun.
capacity of 340kWp. With the development. For more information on SURIA
installation of solar BIPV in their • For landed property, each house in 1000, please visit http://
project development, the property the allocated parcel shall incorporate www.ptm.org.my/bipv/suria.htm or
developers can finally declare their solar BIPV feature. email to suria1000@ptm.org.my
homes as ‘truly sustainable’ with • For non-landed property, solar BIPV SURIA 1000 programme is
electricity generated from a source feature shall be incorporated as the administered by the Malaysia Building
which is guaranteed to be free and prominent feature covering a total Integrated Photovoltaic (MBIPV)
contributing to the betterment of the area of 750m 2 (crystalline solar Project. The Project is implemented by
environment. BIPV) or 1500m 2 (thin-film solar Pusat Tenaga Malaysia for the Ministry
The call for developers will be from BIPV). of Energy, Malaysia with further
16th July 2007 until 1st January 2008. • Letter of commitment to invest and financial support from Global
Property developers can expect free construct the SURIA homes, with a Environment Facility disbursed via
technical consultancy and market- target to complete and provide United Nations Development
ing support from the MBIPV team. vacant possession by year 2011. Programme. The MBIPV Project
The total grid-connected BIPV objective is to reduce the long-term cost
Property Developers: How do I systems in Malaysia stand at 578kWp. of BIPV technology by creating a
participate? The objective of SURIA 1000 is to see sustainable and widespread BIPV
• Eligible for new, on-going, or existing at least 1200kWp of grid-connected market.
Sustainable Development
Supporting Media :
Overview of Japan’s PV
Industry
PV manufacturers in Japan by manufacturers of raw material and
By Izumi Kaizuka, Currently, 10 companies are manu- component for PV,
Manager facturing PV cell/ module manufacturers 4) Formulation of the sales channel of
in Japan; Sharp, Kyocera, Sanyo Electric, residential PV system.
RTS Corporation These movements will contribute to
Mitsubishi Electric, Kaneka, Mitsubishi
Heavy Industries (MHI), Hitachi, Fuji the establishment of the supply
Electric Systems, Honda Motor and framework. In the domestic PV system
FujiPream/ CleanVenture 21 (CV21). market, product development of PV
Production volume of PV cell/ Among them, latecomers manufacture system for public, industrial and
module in Japan differential PV products. Hitachi started commercial use as well as residential use
2006 production volume of solar cells and manufacturing bifacial silicon solar cell will be advanced. Moreover,
PV modules in Japan increased for 10 from 2003. demonstrative research of MW-scale PV
consecutive years, and recorded 927.5 FujiPream and Clean Venture 21 system will be advanced, aiming at power
MW, which is an 11% increase from the jointly produce spherical Si PV module. supply. Users of PV system including
previous year. While Japan has been the Fuji Electric Systems completed a 15- individuals, private companies and local
largest PV production country in the MW/year plant in Kumamoto Prefecture governments will understand the
world since 1999, and the share of Japan and manufactures flexible amorphous Si significance of achieving the targets of
in the worldwide PV production has been module. Kyoto Protocol and are becoming more
decreasing in recent years due to Honda established “Honda Soltec”, a willing to introduce the PV system.
globalization of solar cell/module subsidiary for manufacturing, in It is expected that the PV industry in
production and increase of production Kumamoto Prefecture to produce CIGS Japan will establish collaborative and
volume in all over the world. PV module. Showa Shell Sekiyu also cooperative framework with other
completed a 20-MW/year ministries (besides METI) and agencies,
plant for CIGS solar cell in local governments, related industries as
Miyazaki Prefecture well as users; in conjunction with
aiming at starting national energy strategies and enhance
operation in 2007. the efforts to achieve full-scale
Production Volume (MW)
dissemination of PV system.
Towards self- Examples of PV systems in Japan
▲
sustainable PV
market
Expansion of PV system
introduction in Japan
aiming at self-sustainable
PV market will be
advanced by the measures
Trends of production volume of PV cell/module by manufacturer. taken by the government
Source: PV News, March 2007, partly modified by RTS Corporation
and the efforts of the PV
industry. Framework of
dissemination measures are promoted by
the Ministry of Economy, Trade and
Industry (METI) and the Ministry of the
Environment (MoE). Following METI
that has been leading Japan’s PV policy,
the MoE launched several measures to
introduce PV system to achieve Kyoto
Protocol.
In the supply framework of PV cell/
Hitachi Bifacial solar cell module, the PV industrial structure will
be enhanced and expanded over the
whole value chain in several aspects as
well as increase of production capacity
by PV manufacturers. The mechanism
to achieve this are:
1) New entry of thin-film PV
manufacturers previously described,
2) New entry of raw material
manufacturers into production of
Flexible PV module from Fuji Electric silicon feedstock for PV,
Systems 3) Enhancement of production capacity
Global PV Industry
Development since 15 years
important feedback that crystalline PV is closing rapidly and PV is already
By Daniel Ruoss, technology is well understood and competitive in peak power pricing. In
International Consultant mature. The photos (figure 1 and 2) a few years grid-parity will be achieved
MBIPV were taken in 2004 and both PV in urban centres of Japan and also in
components are still operational today. some parts of the USA. Grid parity is
These first market implementations when cost for electricity generated by
were critical as their successes lead to PV system matches the conventional
1992: Bill Clinton is elected as 42nd increased confidence for the policy electricity cost can be achieved when
president of the USA - Former stakeholders to design and implement cost for PV system decline and
Czechoslovakia voted to split the sustainable PV programmes to conventional electricity prices are
country into the Czech Republic and widespread PV technology. reflecting true cost.
Slovakia - Pope John Paul II issued an Compared to 1992 the global
apology, and lifted the edict of the 2007: The PV market has finally taken market experienced module cost
Inquisition against Galileo Galilei - off and is booming. Driven by reduction of 30% (1992: US$5/Wp /
And the Photovoltaic industry was committed and long term policy 2007: US$3.4/W and 1992: RM18/Wp /
cracking 100 MWp cumulative programmes implemented in Germany, 2007: RM12.2/Wp) and an increase of
installed power capacity. In 1992, the Spain, USA, Italy, France and Korea efficiency of 150% (1992: 12% / 2007:
annual revenue from doing business in the annual revenues End of 2007 will 18%) for mono-crystalline PV cells. The
the PV sector was between US$0.2-0.3 exceed US$14 billion (RM50 billion), industry is developing fast to achieve
billion (RM0.7-1.0 billion – applying resulting in a growth factor of 50 to 60- module prices of less than US$1/Wp
today’s exchange rate RM3.6 for US$1). fold compared to 1992. The biggest (RM3.6/Wp). From time to time the
The United States of America was annual market – for the fourth time in industry experienced some hiccups but
dominating the global market in terms a row – will be Germany with an they have reacted fast towards
of cumulative installed PV capacity annual installed PV capacity exceeding increasing production capacities and
(~45 MWp) and product 1.6 GW (End of 2007). The United cost reduction. In 1988-1990 and then
manufacturing, e.g. Siemens (formerly States of America secured their once again 2005-2007, supply shortages of
ARCO Solar), Mobil Solar and AMOCO/ top spot in the PV ranking (annual crystalline silicon wafer scraps led to
ENRON Solar (with Solarex as installed capacity) and become the No.2 briefly higher prices of PV modules.
business unit). In 1992, the PV module market worldwide overtaking the After 2008-2009, it is predicted that
price dropped for the first time to below Japanese (End of 2007). In Japan the prices will decrease, owing to additional
US$5/Wp (RM18/Wp) and system policy changed few years ago and solar-grade silicon capacity coming on-
prices were around US$12-15/Wp Government subsidy programme for line and new technologies to use metal-
(RM43-54/Wp). residential PV application had grade silicon feedstock for acceptable
Products installed in the first concluded. This resulted in PV cell efficiencies. But prices for modules
markets (USA, Switzerland, Japan and becoming less attractive due to the still will not resume back to normal price
Germany) are performing as higher cost of generating electricity for reduction trend, because today’s
manufacturers had forecasted, PV compared to conventional policies implemented support higher
guaranteed and in turn, provided electricity. But in Japan this price gap sales prices for modules and benefiting
high profit and growth along
the value chain.
But what can be said
about long-term forecasts?
When will production cost for
PV module be below the
US$1/Wp mark? Today the
race is on to be the first
company to promote products
which will achieve grid
parity. The estimated PV
system cost should be around
US$3/Wp (RM10.8/Wp) –
with module prices close to
US$1/Wp – to achieve grid
parity in markets such as
Japan, USA, and partly
Europe. There is enormous
potential for further PV cost
reduction through
technological innovation and
economies of scale. This
Learning curve for production cost of PV modules (Source: United Nations University Press, modified by Daniel Ruoss)
• See page 34