David Mueller EUPVSEC München, 21.06.2016

OPV IN MASS BIPV APPLICATIONS

1668 founded

HEALTHCARE, LIFE SCIENCE

& PERFORMANCE MATERIALS

66 countries

50,000 employees

€1.7 bn invested in R&D

in 2014

€11.3 bn sales in 2014

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 2

Next generation PV - Paradigm Shift

Additive continuous processes, large area

Material driven (tailor-made)

Flexible, short production runs

Low cost R2R printing

Subtractive batch processes, small area (wafer)

Process driven

Fixed, long production runs

High equipment and infrastructure costs

“one” material (Si) “indefinite” materials

Source: Wikimedia*

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 3

Large market segments

1 2 Building-integrated PV (BIPV) Light-weight rooftop

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 4

OPV formulations are designed to be printed from solution

Different color of final film achieved by formulation design

Listen to our end-customers…

Color of OPV

© Deutscher Pavilion Expo 2015 Milano / Stefano Oppo

Architects demand

gray!

Stable modules with grey reaching >6%

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 5

BIPV projects - completed

African Union in Addis Abeba

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 6

OPV is PV, but PV is different to what many think of “PV”

Complying with existing design rules

BIPV projects - prototypes

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 7

More Details: Stephan Wieder’s Special Introductory Presentation Wed 17:00 *

“OPV 2.0” is on the horizon…

Literature data: cell efficiency for SJ OPV cells versus time

Significant scientific progress in recent years

20,0

13,0

11,2

7,36,3

0

5

10

15

20

+33%

hypothetical

PCE [%]

end 2016 Q1/2016 2015 2014

?

Hypothetical practical limit based on assessment by Prof. Huo, ICCAS, Peking

Extrapolates efficiency of latest results (10,78%) assuming improved JSC of 22 mA, VOC of 1,0 V and FF of 80%

estimate

Let’s squeeze out everything:

* 3CO.8.1 Industrialization of OPV S. Wieder, Merck, Darmstadt, Germany OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 8

Market pull

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 9

Net zero energy buildings are one of the most powerful drivers to reach CO2 emission goals

Buildings are responsible for ~ 40% of the EU CO2-emissions

40%

Global floor area increases by factor of 1.73 from 2010 to 2050*

1.73

* Note: population only increase by a factor of 1.34

Increase of energy consumption per German household from 2012 to 2013

3.3% 320

70

270

0

50

100

150

200

250

300

Energ

y c

onsum

ption k

Wh/m

² y

ear

Exis

ting/o

ld

nZEB

Passiv

e

EnEV 2

009

Source: EU, OECD, DESTATIS

75

%

Average 2013

Private buildings in Germany

added buildings

must compensate?!?

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller

10

Recent study confirms huge BIPV potential in Europe

Adel El Gammal et.al. Technical Evaluation of BIPV power generation potential in EU-28

The BIPV market potential for building surfaces in EU 28 is > 1000 km²

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 11

…but basically unexplored!

In Germany only 2-4% of the installed PV capacity was BIPV. In 2013, 0.4 GW were generated worldwide using BIPV

In Germany the BIPV market potential for building surfaces alone is estimated at ~340 km2* amounting to an installation peak capacity of approx. >50 GW

WHY?

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 12

Product

Current products often not inline with traditional design rules and aesthetic demands

High product(ion) costs due to low volume market and unfueled learning curve

Inadequate or missing standards, certification & regulatory schemes

Value Chain

Fragmented value-chain, no integrating association and roadmap established

Business structure mostly incompatible with classic PV, need to develop autonomous eco-system

End-market (architects) still unaware of BIPV possibilities

Macro-Economically driven

Inherent long-term type ROI unattractive for mainly institutional real estate investors / developers (tie

up of capital) => not micro-economically preferred

Conservative construction industry with long innovation cycles

Lower ROI as PV due to suboptimal operation and high customization level

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 13

Gaps / obstacles for BIPV

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 14

The good news for Europe

BIPV is a local-to local market

EU28 FLAT GLASS [tons]

PRODUCTION 8 289 790

Apparent Consumption 7 752 741

EXPORTS Extra-EU 864 293

IMPORTS Extra-EU 327 244

Exports/Imports 2.6

Every façade and every window is more or less different => customization

Construction industry is very traditional and local

So is the glass industry where flat glass is customized in proximity to the glass manufactures

Source : Members of Glass Alliance Europe (GAE)

Energy Performance of Buildings Directive

• Technology-neutral

• Defines energy requirements for renovated and new buildings

Energy Efficiency Directive

• Technology-neutral

• Accelerates renovation

RES Directive

• Technology neutral

• Requires more RES on buildings

Construction Products Regulation

• Facilitates trade of construction products in the EU

Eco-Design Directive

• Design requirements for marketing of products

Energy Labelling Directive

• Information to consumers about energy efficiency of products

Technology neutral Technology specific

15

…and there will be strong regulative frameworks in place BIPV Task-force

adapted from

BIPV: Green energy for all types of buildings (new & existing!) and aesthetical needs

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 16

BIPV is a key enabler to complete the road towards full EPBD implementation

Today: renewables in buildings are “nice to have”

Current and near future efficiency standards mainly

reached by traditional passive elements

Status 2021: renewables are key enabler

Innovative, active building components such as

BIPV are essential to reach nZEB levels

Integrated PV roof Semi-transparent PV Flexible & lightweight PV

Local-to-local Biz Substantial CO2 savings Resource efficient Excellent life-cycle Pays back

Opaque PV Façades

Provide large solution space

BIPV Task-force

adapted from

Potential issues

Energy Performance of Buildings Directive (EPBD)

new & innovative solutions

Cost-optimality biased towards

mature technologies

EPBD target

implementation

Sudden strong demand

prerequisite

Unlock potential of new & innovative solutions:

Economy of scale & price reduction

Investment security

Prioritize innovation ?

Certainty of directive

• How and to which extend will the directive foster the necessary innovation and market implementation?

• Or more practically: how easy will it be for building owner to go around the regulation? => Improve certainty of directive and incentivize innovative technologies

e.g. triple glazed windows, ventilation systems with heat recovery and BIPV

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 17

BIPV Task-force

adapted from

© SCHMIDHUBER / Milla & Partner / NÜSSLI

THANK YOU & let’S discuss!

OPV in mass BIPV applications - EUPVSEC 2016 - Dr. David Mueller 18

Head of PV Marketing

david.mueller@merckgroup.com

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DR David Mueller