SEIA Members Discount - Log into your Online Media...

SEIA Members Discount

March 27, 2015 © 2014 Solar Energy Industries Association® 1

SEIA Members may use the code SEIA15

to receive 15% off of the

O&M report (single or enterprise license),

now through May 31, 2015.

Utility-Scale PV Operations &

Maintenance — Market, Trends, and

Vendor Landscape

Cedric Brehaut, SoliChamba Consulting

Justin Baca, SEIA, Moderator

Antitrust Reminder

• As a trade association of competitors, SEIA must

comply with federal and D.C. antitrust laws.

• Competitively sensitive matters cannot be

discussed on this webinar, including product

prices; sales terms or conditions; production

levels; sales territories; marketing plans; industry

forecasts; or bid terms.

• If any such topic is raised, SEIA will stop the

conversation and, if necessary, end the webinar.

• For more information, SEIA’s antitrust policy is

available on its website: www.seia.org.


http://www.seia.org/

About SEIA

• Founded in 1974

• U.S. National Trade Association for Solar Energy

• 1,000 member companies from around the world

• Members from across 50 states

• Largest companies in the world as well as small

installers

• Represent full value chain

• We promote solar to State Policy Makers, the White

House and Congress

• Our Mission: Build a strong solar industry to power

America

– Goal of 10 GW of annual installations by 2016


SoliChambaConsulting & Market Research

All rights reserved -- SoliChamba Consulting and GTM Research 5

UTILITY-SCALE PV O&M

GLOBAL MEGAWATT-SCALE PV MARKETS

Cedric Brehaut

SoliChamba Consulting

San Francisco, California

www.solichamba.com

[email protected]

+1 (415) 250-4919

http://www.solichamba.com

mailto:[email protected]



Scope Definitions

• Asset Management

• Financial

• Administrative

• Commercial

• Supervision of O&M

• Operations Management

• Plant supervision (monitoring, dispatch...)

• Plant operations (controls, scheduling…)

• Back-office (reporting, warranty…)

• Performance engineering

• Maintenance

• Preventive & corrective

• PV plant, PV site, general site Source: SoliChamba Consulting & GTM Research,

Megawatt-scale PV O&M and Asset Management: Services,

Markets and Competitors, 2014-2018

http://www.greentechmedia.com/research/report/megawatt-scale-pv-om-and-asset-management-2014-2018



How Many Providers Do You Need?

Asset

Management

Operations

ManagementMaintenance

Asset

ManagementOperations & Maintenance

vs.

vs.

Asset Management incl. Operations & Maintenance

vs.

Asset Management & Operations Maintenance



Global Megawatt-Scale PV Installed Base

Source: “Megawatt-Scale PV O&M and Asset Management: Services, Markets & Competitors 2014-2018

(GTM Research & SoliChamba Consulting)

26 29

47

7 13

44

27

46

137

1 2

13

-

20

40

60

80

100

120

140

160

2013 2014E 2018E

Me

ga

wa

tt-s

ca

le P

V P

lan

ts in O

pe

ratio

n

(Gig

aw

att

s)

Europe Americas Asia-Pacific Middle-East-Africa

Full report includes annual numbers from pre-2009 to 2013, 2014 estimates, and forecasts to 2018 for Germany,

Italy, Spain, UK, France, US, Canada, Chile, India, Japan, China, Thailand, South Africa and the Middle East.



U.S. Megawatt-Scale PV Installed Base


(GTM Research & SoliChamba Consulting).



2%5%

11%

20%

27%

35%

Pre'09

2009

2010

2011

2012

2013

2014

2015E



U.S. Megawatt-Scale PV Installed Base Growth





0

2

4

6

8

10

12

14

16

18

20

GW

in

op

era

tio

n

Pre'09 2009 2010 2011 2012 2013 2014 2015E



Canada Megawatt-Scale PV Installed Base





4%

11%

12%

7%

17%

22%

27%2009

2010

2011

2012

2013

2014E

2015E



Canada Megawatt-Scale PV Installed Base Growth





0.0

0.5

1.0

1.5

2.0

GW

in

op

era

tio

n

Pre'09 2009 2010 2011 2012 2013 2014E 2015E



European Megawatt-Scale Plants (GW) -- 2014E



Germany

38%

Italy15%

Spain10%

France7%

UK6%

Rest of Europe

24%

0

5

10

15

20

25

30

Pre-2009 2010 2012 2014E

Euro

pean M

egaw

att

-Sca

le P

V P

lan

ts

(GW

)



Service Provider Categories (Americas)

Vertically Integrated Solar Firms First Solar, SunEdison, SunPower

Utilities and IPPs EDF, NRG...

EPCs and Project Developers Gehrlicher, Juwi, Swinerton…

Inverter Manufacturers AE, Schneider Electric, SMA...

Independent O&M Providers Alectris, QE Solar, SunOp…

Asset Managers Radian Generation, Solarrus…



Global Megawatt-Scale O&M Competitive Landscape



O&M/AM provider

EPC/developer

Inverter

manufacturer

IPP or fund/owner

Vertically

integrated

Vendor category:



North American PV O&M/AM Landscape (Utility-Scale)Vertically Integrated Solar Firms

EPC & Developers Independent Providers

Inverter Companies

Independent Power Producers (IPP)

Financial Investors



Let’s Talk About O&M Prices

Price per MW per year for given size, scope, technology and location

Market averages can hide multiple market segments:

Basic service plans (operations management + preventive maintenance)vs.

Extended service plans (add corrective maintenance, spare parts, grass cutting/module cleaning, etc.)

Price differences between countries/regions may be due to:

Climate differences (impacting cleaning/grass cutting frequencies)

Technology differences (e.g. trackers in Spain)

Service level differences (e.g. basic plans in Germany)

Energy prices and incentive levels

Competitive pressure

O&M prices do not include Asset Management, Insurance, Taxes, etc.

Different from SPV Opex



Global Megawatt-Scale O&M Prices Overview*



Germany Italy Spain France U.K.

O&

M S

erv

ice

Pri

ce P

er k

W p

er

An

nu

m

Typical O&M prices for a 5MW plant (2014E)

*: Full report includes average, low and high price points for 5 plant sizes (1, 5, 10, 20, and 40 MW) for each

country, and defines the typical scope(s) associated per market. The analysis is based on 30+ surveyed vendors.

U.S.

Scope level: Basic Intermediat

e

Extended

€20

€15

€10

$21.8

$16.3

$10.9

€5 $5.4



In-Sourcing vs. Outsourcing: Who Are You?

Source: 3megawatt GmbH & SoliChamba Consulting,

Megawatt-scale PV O&M and Asset Management: Services,

Markets and Competitors, 2014-2018

• Financial vs. technical

• Short/mid/long-term Interest

• Technical depth and long-term

interest increase the value of in-

sourcing vs. outsourcing

• Asset management is easier for

investors to in-source

• Portfolio size tips the scale

towards in-sourcing




O&M Provider Selection Considerations

• Expertise

• Infrastructure & tools (operations center, ticket management…)

• Ability to perform warranty repairs

• Alignment with owner’s interests

• Guarantees offered

• Longevity/bankability

• Scale and geographical coverage

• Track record



O&M Strengths & Weaknesses: EPCs

Source: SoliChamba Consulting and GTM Research, Megawatt-scale PV O&M and Asset Management: Services, Markets

and Competitors, 2014-2018




Trend: O&M is Separating from EPC (Slowly)

• Plants that age out of workmanship warranty are commonly re-

contracted to a different O&M provider (not the original EPC).

• Some U.S. EPC providers now have a separate business for O&M,

with distinct branding (e.g. Vigilant Energy Management, First Solar

Energy Services).

• U.S. independent service providers like Solarrus are capturing part of

the O&M market for new plants, via partnership with EPCs and inverter

manufacturers.

• Canada now has independent service providers (e.g. Omifin).



Trend: O&M Price Pressure

• Almost all markets show decreasing prices

• Service levels are decreasing (low-price O&M plans put more risk on

investors)

• In Germany and Italy, price pressure comes from competition between O&M

providers

• In the U.S. price pressure comes from steep decrease in utility-scale PPA

rates and intense competition between project developers

• Exception: some emerging PV markets where investors are willing to pay a

premium for risk avoidance.



Trend: The Landscape is Consolidating

• 2014:

• First Solar acquires Skytron Energy

• SMA acquires Phoenix Solar (Europe)

• Shunfeng acquires meteocontrol (S.A.G. Solarstrom)

• Opterra Energy Services acquires Chevron Energy Solutions

• Solarrus acquires MaxGen Energy Services

• 2015 (so far):

• Enphase acquires Next Phase Solar

• Duke Energy acquires major stake in REC Solar (non-residential)

• Who’s Next?



European Trend: Portfolios are Consolidating

• New construction and secondary market drive creation of large asset

portfolios.

• Portfolio investors consolidate on one vendor across the portfolio.

• Some large portfolio owners decide to in-source O&M (e.g. Capital

Stage)

• O&M providers seek large portfolio wins (e.g. Martifer’s 90 MW

contract in Italy)

• Watch for this trend in the U.S.



For More Information on PV O&M…

• Research reports published by

• Megawatt-Scale PV O&M and Asset Management:

Services, Markets and Competitors, 2014-2018 (270+ pages)

• U.S. Distributed PV O&M and Asset Management:

Services, Markets and Competitors, 2015-2020

• Global PV Monitoring: Technologies, Markets and Leading

Players, 2014-2018 (400+ pages)

• Consulting services

COMING SOON

(IN APRIL 2015)

Cedric Brehaut

SoliChamba Consulting

San Francisco, California

www.solichamba.com

[email protected]

+1 (415) 250-4919


http://www.greentechmedia.com/research/report/global-pv-monitoring-technologies-markets-and-leading-players-2014-2018

http://www.solichamba.com

mailto:[email protected]

Questions

Please type your questions into the lower left corner

of the window.

Click the “send” button to submit.


Thank You!

Thank you for joining today’s webinar.

Join SEIA and GTM Research tomorrow at

1:00 PM ET, for a webinar covering highlights of the

U.S. Solar Market Insight Report Overview:

2014 Year in Review Report

Register for upcoming

SEIA webinars at www.seia.org/webinars


http://www.seia.org/webinars

SEIA Members Discount - Log into your Online Media...

Documents

Transcript of SEIA Members Discount - Log into your Online Media...