Development of the PV industry in Europe Michel VIAUD General Secretary

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Development of the PV industry in
EuropeMichel VIAUDGeneral Secretary
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WHO is EPIA?

• Exists since 1985
• 66 members 52 full 14 associate
• 52 full manufacturers on the overall value chain
• Budget 2004 550 000 ( EC 1/3 2/3 members)
• Secretariat in Brussels - the heart of EUROPE
• 5 permanent employees speaking 13 languages
• 6 Board members elected for 3 years
• President per year

Winfried Hoffmann 2004-2005
2005-2006 Murray Cameron
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EPIA and its members

• EPIA represents 95
  of the photovoltaic European
  industry, covering the whole production chain.
  
• Silicon feedstock Wacker
• Wafers and Ingots Crystallox, Scanwafer, PV
  Silicon
• Cells Q-cells, BP Solar, Isofoton, Shell Solar,
  Deutsche Solar,
• Modules RWE Schott Solar, Photowatt,
  Photovoltech
• Systems Total Energie, Naps Systems, Conergy,
  Phoenix,
• Inverters SMA, Philips, Sunways, Fronius

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EPIA and its members
Top 10 worldwide 9 EPIA members
Source EurObservER, Photovoltaic Energy
Barometer 2005
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EPIA and its members
EPIA members 80 of world cell production in 2004
Source EurObservER, Photovoltaic Energy
Barometer 2005
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EPIA and its strategy

• Strategy for three years adopted
• by all members in June 2003 in Frankfurt
• Market oriented taking in acount all
  technological aspects, cost reduction,
  competitiveness...

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Mission statement
EPIA exists to deliver to its members a distinct
and valuable service driven from the strength of
a single European photovoltaic (PV) voice.
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Objectives
EPIA has 3 objectives

• To become the most credible reference point for
  the European PV Industry stakeholders. EPIA will
  provide accurate information, statistics and
  feedback to both its members and the wider
  audience. 

2. To help shape the development of new PV
markets both in Europe and export community. 
3. To take the lead in positioning the
photovoltaic industry within the European
political environment and supporting the member
state association in their local objectives.
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EPIA Action fields
To reach the 3 objectives, the EPIA
strategic plan focuses on 3 action fields

• Market growth strategy
• Products and services
• Lobbying

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Action programme
1. Market growth strategy

• Opportunities, Perspectives, Potentials and
  Hurdle in the enlarged EU Market
• Export in developing countries and other OECD
  countries
• Socio-economic
  and financial issues
• State-of-the-Art
  SWOT Analysis

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Action programme
2. Products and services

• Crystallizing the fruits of the European RTD
  (dialogue established and common positions with
  EUREC Agency)
• Engaging the Construction Industry in PV
• Communication tools
• Cost and prices trends
• Certification and standards
  (CENELEC, IEC, PV GAP)

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Action programme
3. Lobbying

• European Institutions Lobby
• National Lobby in the EU countries
• Worldwide institutions Lobby

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Partnership

• Partnership
• National PV Associations
• National Energy Agencies
• (PV Core group)
• UNEP/UNDP
• SEMI
• World Bank
• European Institutions

• Membership
• EREC
• IEA-PVPS
• Insula
• CEFIC
• PV GAP
• e5-European Business Council for Sustainable
  Energy

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Main results 1st Period

• Cooperation platform with research community
• FP 7 priorities
• EPIA Roadmap
• Solar Generation up-date
• Export strategy
• Feed-in-tariff position with
• National PV Associations
• PV Policy Core Group with
• National Energy Agencies
• National lobby
• International lobby
• Secretariat of the PV Technology Platform

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Main objectives 2nd Period

• EU PV Technology Platform
• Investment Fund
• PV Catapult continuity
• E-RES Directive mid-term
• assesment
• Communication strategy
• ARE - Alliance for Rural Electrification
• GPSC - the Global PV Solar Electricity Council

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Conditions for European PV industry development

• Market development
• Competitiveness
• Technology evolution
• Support Programs

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Market development Historical Market Growth by
Region (MW)
Source (1998-2003) PV News Strategies
Unlimited (2004) Solarbuzz
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• Market development World PV Market Size
  andApplication Segmentation

40 p.a.
63 p.a.
18 p.a.
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• Market development PV market increase and
  necessary investments in production equipment

300 GW/Year _at_ 2030
25 p.a.
250 Mrd (500 Mrd)
30 p.a.
80 Mrd (160 Mrd)
10 Mrd (20 Mrd)
Source RWE Energie AG and RSS GmbH
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• Competitiveness of PV Solar Electricity

• Proven in the three segments
• industrial off-grid
• consumer
• rural electrification
• Coming soon in grid-connected systems
• First, in local replacement of peak tariff
  electricity kWh in liberalized southern OECD
  countries ( 2010 2015)
• Second, the same in more northern OECD countries
  ( 2020 2025)

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• Competitiveness Electricity Generating Cost for
  PV and utility prices

Photovoltaics Utility peak power Bulk power
Source RWE Energie AG and RSS GmbH
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• Competitiveness Correlation between Daily PV
  Power Production and Energy Consumption of an
  Office Building in Spain

Source RWE Energie AG and RSS GmbH
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• Competitiveness Spot Market Prices in
  Correlation with PV Electricity Generation in
  Germany

Spot market price
PV power output
Source
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• Technology evolution

Source _at_ RWE SCHOTT Solar GmbH
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• Support ProgramsGeneral considerations for a
  future technology

• double digit and stable growth
• high volume ? economy of scale
• competitive profit making to the industry sectors
• global industry
• PV solar electricity is a high potential
• candidate !
• Need for local industry-political actions

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• Support ProgramsInfluence of Feed-in tariff on
  an annual PV installation in Germany (MW)

New Feed-in Law
Feed-in Law
1,000-Rooftop program (2.500x3kW)
100,000-Rooftop program KfW
Source _at_ RWE SCHOTT Solar GmbH and EurObservER,
Photovoltaic Energy Barometer 2005
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• Support ProgramsTotal installed capacity in
  Europe in 2004 (MWp)

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• Support ProgramsGermany vs Rest of Europe in
  2004 (MWp)

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• Support ProgramsThe most effective support
  programme

Feed-in tariff

• Advantages
• Focus of customers will be on product quality and
  performance of the systems for a long period of
  time
• Investors confidence secured
  (attractive rate of return for
  investors)
• Does not a burden on public funds
• No Bureacratic constraints
• Appropriate Tool to stimulate Industrial
  Investment

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• Support ProgramsMarket Potential until 2010
  (2015)assuming a quick Introduction of
  anEU-wide Feed-in Tariff System

Source _at_ RWE SCHOTT Solar GmbH and EurObservER,
Photovoltaic Energy Barometer 2005
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Global problems and challenges

• Silicon shortage
• Statistics
• Standardization and certification
• Lack of financement
• Political barriers

• A need to work together at worldwide level

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GPSC - the Global PV Solar Electricity Council
history of the initiative
08 June 2004 Paris
19th European PV Solar Energy Conference and
Exhibition
agreed to reinforce their cooperation to
address common issues of interest towards
national governments and international
institutions.
SEIA - The Solar Energy Industries Association
JPEA The Japan Photovoltaic Energy Association
EPIA European Photovoltaic Industry Association
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The GPSCs mission
Its mission consists to promote the
photovoltaic energy on the global marketplace as
a sustainable and clean electricity supply for
on-grid and off-grid applications. GPSC is a
platform for supporting its members in their
common interest for the industry needs and for
the market development.
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The GPSCs objectives

• GPSC must become the credible reference for the
  PV stakeholders worldwide with the following
  objectives
• GPSC provides accurate information and feedback
  for the wider audience
• GPSC helps shape the development of new markets
• GPSC contributes to harmonize policies, products
  and PV services for a competitive global
  marketplace
• GPSC participates in the creation of appropriate
  policies and regulatory frameworks.

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GPSC invited PV Industry Associations and next
steps
CanSIA -Canadian Solar Industries Association
EPIA European Photovoltaic Industry Association
Creia- Chinese Renewable Energy Industries
Association
SEIA - The Solar Energy Industries Association
JPEA The Japan Photovoltaic Energy Association
GPSC
TPIA - Taiwan PV Industry Association
06 June 2005 Barcelona
KPDO - Korean Photovoltaics Development
Organization
BCSE - Australian Business Council for
Sustainable Energy
NZPVA - New Zealand Photovoltaic Association
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More information on www.epia.org
EPIA Monthly Newsletter Solaris 3000 contacts !
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Thank you for your attention !I am looking
forward to meeting you in Barcelona