1. Taiwan PV Industry Overview Dr. Joeng-Shein ChenTaiwan Photovoltaic Industry Association, TPVIAPhotovoltaics Technology Center, ITRI 2008/1/1 14Event, Venue information

2. Outlines RE Resources in Taiwan PV Policy and Strategy PV Industry in Taiwan PV Installation and Incentive Programsin Taiwan Who is TPVIA How Taiwan Can Win ! 2 2008/1/14 Event, Venue information 3. Top 10 Problems in next 50 years Energy () Water () Food () Environment () Poverty () Terrorism & war() Disease () Education () Democracy () Population () Oil Nature GasCoal Uranium 41 yrs 67 yrs 192 yrs 53 yrs Source: Richard Smalley, Rice University2004, BP 3 2008/1/14 Event, Venue information 4. Solar energy : Only RE not from theEarthhttp://www.hubbertpeak.com/debate/oilcalcs.htm Solar Energy Input (Terawatts=1012W)178,000Reflected to Space Immediately 53,000Absorbed and Then Reflected as Heat82,000Used to Evaporate Water (Weather)40,000Wind energy 1,000Captured by Plant Photosynthesis100Total Energy Used by Human Society 13Total Energy Used by US Society2.5Total Human Food Energy0.6 1. ~ 4 2008/1/14 Event, Venue information 5. Global Cell Production Forecast 1. 2006/3 by Goldman Sachs , 2010 will grow up to 4GWpgrowth rate 20% 2. 2007/4 in The 4th Solar Silicon Conference, by PHOTON Consulting 2010 global capacity will achieve 15GWpgrowth rate 60%1600014000 15GWp 1200010GWp10000 8000The 4th Solar Silicon Conference /PHOTON Consulting 2007 .46000 PHOTON Consulting 2006 .10 Goldman Sachs Global Investment Research 2006 .34GWp 40002.6GWp 2.5GWp 2000 1.9GWp 0 1996 1997 1998199920002001200220032004 20052006e 2007f 2008f 2009f2010f5 2008/1/14SourcePVTC / ITRI(2007/06) Event, Venue information 6. MO38:clpdcww06Rev.1 BP Solar 33 SunPMicrosol International (UAE)MO39:clpdcww06rev.1 (AU)15.0 MW 0.6 %(PH)owerOthKyungdong PV Energy (Korea) )BP tech GinDe The World PV Cell Production (MW/year 2006) 12.5 MW 0.5 % Solers 14.4 MMW 0.8 % lS ar 15.0 MolaE- 62.7.4 MW 1.3 % To29.0 W 0.0.6 %rM n ot20MW 2 MW%ec32.0 MW 6 % % Sharph .5 Shezhen Topray Solar (CH)15.0 0.6.5 % W .31.1 MW Solterra (CH)12.0 0.5 1 10 .4 Ot434.0 MW % Other China52.0 2.1 1.0 % he 479.0 3.1 rsOthers 17.2 %MSo79123.6 MWW lar.0 f unMWIndia 4.9 %JABaoSo253.143.4 MWdi n lar .0% gY 25. MWTaiwan 1.7 %in g0 Mli35.0 W 11.0 % CEE MW . 0 % 177.5 MW G Nanj i ng 1.4 7.1 % Japan KyoceraPV%60.0MW2.4 %China 180.0 MW 927.5 MW381.5 MW 2006 7.1 % Suntech 15.1 % PV Cell36.8 %157.5 MW6.2 %ProductionSanyo US 2,521.8 MW155.5 MWMW % 1.2 % 6.2 % Evergreen Solar13.0 0.5 31.0 MW .9 %201.6 MWers W 0 .0 % MitsubishiOth M8.0 % Schott Solar 13.0 0.522.0 MW 1 %er) 1.1 % Elec. Global Solar2.5 0.1tro pow r 25.6MW 1.4 Europe Other 2.5 0.1(As ola111.0 MW GE BPS 2 8.0 MW % %31.0 1.22.4666.3 MW4.4 %2ICS1. 7 %N 3 5.0 VO MW% W 0.rOCA 26.4 %M Wla.01rld 60 3. .0 M So30 .5M W 1. 0 % do rw larW % i teKaneka MW 0.7 17 o la MW 1 .1 %MW % UnSoQ-Cells.2 %St .7Others 0%% MW rs78 .6 %Solland (NE) 18.0 0.7 Fi1 61.0 MW 2.4 rs 253.1 MWW 2.Schott.0 Ever-Q (DE)15.0 0.6eW118 .0 thMW %0M24 .5 BP Solar (DE)12.3 0.5Oolar 10.0 %51.0 M 27 .0 M Mitsubishi HEL 12.00.5 ot tech 83.0 MW30. Solarwatt (DE)8.0 0.3 att Hitachi5.0 0.2 che Sl 3.3 %lll 40 vo Antec (DE)8.0 0.3 owceynto Other0.5 0.0 waIsofotoan Helios (IT) 5.0 0.2oPhErso Duets PhSc 17.5 0.7Sun Wrth Solar (DE)2.4 0.1 Other10.0 0.4 62008/1/1478.7 3.1 Event, Venue informationPV News April 2007 :Prometheus Institute : partly amended by K.Y. 7. PV Demands Surces: IEA; YOSHINO Consultant Co. Cumulative Installed PV in IEA PVPS CountriesMO42:wwpccominst06MW 3,000 2,863 2,500 a ymn Ger 2,0001,9101,708.5 n 1,5001,421.9 pa a J1,000 624A 479 US500Spain Australia 118.2 70.3019931994 199519961997 1998199920002001200220032004 2005 2006Trends in PV Applications, Survey report of selected IEA countries between 1992 and 2006 Report IEA-PVPS T1-16:2007 7 2008/1/14 Event, Venue information (2007/12) 8. Potential Renewable Energy Capacity in Taiwan Potential capacity Evaluation criteriaSolar PV3,450MWFrom DOI data for 1992~2004, total building roof top projected area ~115,139,400 m2, the estimate is based on a1.15m households3kW 30% installation ratio and each kWp requiring 10 m2 . eachAnnual peak o/p : 1,200 hrWind Power4,800MWConsidering only regions with annual wind speed > 5m/s and wind density > 200W/m2,On-shore : 1,600MW after eliminating restricted zones, current estimate yielded on-shore wind farm potentialOff-shore : 3,200MWof more than 1,600MW.Annual full-load o/p : 2,500 hrOffshore potentialestimate of ~1,200 MW for shallow seabed (5~20m depth), preliminary estimate give ~ 2,000 MW for deeper seabed.Biomass 7.6 MKLOE/yEstimated from bio-crop, cellulose resources and wastes :Bio-crop 2.6 MKLOE/y Bio-crop and cellulose 2.6MKLOE (ex. Natier grass, 145K hectare)Wastes 5.0 MKLOE/y Municipal Wastes 12 mTon Industrial Wastes 4.32 mTon (organic non-toxic waste incl. paper rejects, wastes plastics, ) Bio-gas 88 x 107 m3 (incl. industrial and agricultural waste waters recycling)Geothermal Power generation potentials for shallow reservoirs is estimated to be 600 MWe.Shallow reservoirs600MWePreliminary evaluations on power generation potentials for deep reservoirs is underway (0-3000m) for Ilan-Luodong-Sansing and Tatun area.Deep reservoirs under (3000-10000m) evaluation 8 2008/1/14Event, Venue information 9. Sustainable Energy Development Policies in Taiwan Support economic growth without sacrificing future generations need for further development.maintain a balance of Environmental Protection , Energy Security and Industrial competitiveness . ensuring a stable energy supply through utilization of environmentally friendly clean energy, renewable energy and energy efficiency.EnergySustainableSufficient , stableenvironments and affordableand renewableenergy servicesenergy supply EnvironmentallInnovative technologies y friendlyfor green energy energyindustry utilization High quality and stableresources forEnvironment production Economy Reflecting external cost structure to strengthen economic development 9 2008/1/14 Event, Venue information 10. Strategies for Attaining Renewable Energy Targets With Wind Power, Solar PV and Bio-energy as primary candidates, a focus on R&D and other measures will result in lowering cost and induce private investments, while supplementing promotional efforts on Solar thermal, mini-hydro, geothermal, ocean energy and hydrogen, leading to a broad-based utilization.Wind PowerWith comparable power generation cost to conventional power plants, shall promote rapidinstallation in good wind resources regions. Solar PV Still an expensive form of electricity, but is a high value- added products, shall capitalize on local know-how to establish a competitive industries.Bio-energy Shall follow worldwide trend to quickly develop a viable domestic bio-diesel and bio- ethanol infrastructure to counter a rise in crude oil prices.Geothermal and mini-hydroSlow near-term potential due to eco-issues, will focus on special demos.Ocean and hydrogen energyStill need longer-term R&D.10 2008/1/14Event, Venue information 11. Taiwan Renewable Energy TargetsTarget for Renewable PowerDevelop indigenous/sustainable renewable resources assupplemental power. Utilize this new market and promotional effortsto induce establishment of new energy industries.Target for 2025 is set at 8,450 MW. 2006 2010 2015 2025 MW % MW% MW%MW%1.Hydro1,9115.15.75.14.4 2,168 2,261 2,500 2.Wind Power0.52.63.45.3203.7 9801,480 3,000 3.Solar Power 0.00.10.71.81.631320 1,000 4.Geothermal --- ---0.00.310150 5.Biomass6001.61.91.92.5741850 1,400 6.Fuel Cell--- ---0.10.450200 7.Ocean Energy --- ---0.00.4 1 200Total 2,7163,910 4,972 8,450Share of RE power in national electricity 7.3% 10.3% 11.2% 14.9% generation capacity Note: national electricity generation capacity (excluding self-use power): 2006 37.38GW; 2010 38.28GW; 2015 44.18GW; 2025 56.64 GW 11 2008/1/14 Event, Venue information 12. Taiwan Renewable Energy Industry Development TargetsPV, wind power and biomass have been selected as major sectors.Strategically develop the key technologies which would drive downproduction cost, build up strengths for industry development, andencourage deployment.Sales Volume TargetedPV industry 2006 21.2 Billion NTD 2007 40Billion NTD (50 B) 2008 90Billion NTD 2010 150 Billion NTD 2015 400 Billion NTD Wind Power IndustryBiomass Industry20060.7 Billion NTD 2006 0.03 Billion NTD20103 Billion NTD 20106 Billion NTD2015 20 Billion NTD 2015 20 Billion NTD 12 2008/1/14Event, Venue information 13. Photovoltaic Development History in Taiwan 1980-1990-Mono-crystalline silicon(2 inches), amorphous silicon(ITRI)-Sinonar Amorphous spin-off from ITRI(1987)1991-2000-mono-crystalline silicon(4 inches,1992,ITRI)-Motech founded(2000)2001--Initiate PV promotion program(2001,MOEA)-Blooming solar PV research(2005)-dye-sensitized(2002),thin-film and others(2005)-DelSolar spin-off from ITRI(2004)-3 ingot/wafer, 8 C-Si solar cell(2006/9)-Renewable Energy Act waiting for legislation approval13 2008/1/14Event, Venue information 14. Solar Cell Technologies RoadmapMWp Power generation cost < 7 1000MWp NT$/kWh Establishment of 2.5 generation of non-vacuumpolysilicon materialsprinted solar cell technology 1000 industry High-efficiency concentrating solar 1.5 generation of low-costTechnology Milestonecell system crystalline silicon solar cell 75 Construction of verification technology Commercialization of 3rd0 platform and national generation solar cellstandards Develop flexible organic solar cell R&D of integrated equipment and320MWp 50process of high-efficiency0crystalline and thin film-basedCommercialization of silicon solar cells. Module Verification Technology next 25generation solar cell 1MWp 31MW0 Develop high-efficiencyp silicon-020062010 2015 based thin film 2020cell solar2025 Policy Measures Renewable EnergySet up Fund to subsidize Increasing solar PV installation Development Act electricity purchase percentage on public works The establishment of Adding building with solar PV New Public works solar PV technologyinstallation into energy-saving to installtesting certification areasassessment schemesolar PV Promoting 100,000 sun roof project 142008/1/14 Event, Venue information 15. Research Activities in ITRI Dye-sensitized solar cell (commercial product in 2010) materials, unit cell and module design and packaging lab scale manufacturing stability and efficiency10% Si-crystal solar cell (major product before 2015)texturization (acid etching) and back contact (laser firing contact)wafer thinning (130m)efficiency20% Si thin-film solar cell (main product in 2010)a-Si/C-Si tandem cellfast deposition rate (~15/S) on big glass substrateefficiency10% Poly-silicon development (Fast response to industry needs) pyro-metallurgical process 15 2008/1/14 Event, Venue information 16. Solar Cell Industry in Taiwan StatusMore than 50 manufacturers for wafer, solar cell, module and 20for system. Thin film solar cell is starting to develop. Module production capacity will arrive 108 MWp from 15companies.Annual output will rank fourth in the world in 2007. Problem ( Challenges): Lack of Si raw materials and production equipment autonomy;Si based crystal cell Turnkey-technology needs improvementModules verification capacity should be expanded;Thin film module detection and system technology yet to be 16 2008/1/14 established. Event, Venue information 17. PV Industry Value Chain of Taiwan 1. More than 76 companies: 16 for crystalline silicon, 10 for thin film, 15 for module, and 6~7 for silicon wafer.2. Rely on oversea market and material supply: 98% of wafers imported and 97% of solar cells exported. Up Stream Mid Stream Down StreamIndustryPoly-SiSi IngotsPV System & Solar CellPV Module Material&Wafer PV ProductMotech, E-Ton Tyn Solar Motech, China Electric No producer Sino-American Si DelSolar, Gintech Lucky PowerSolartech,PS TechEbright,Lucky Power,in Taiwan yet.ProductNeo Solar Power LigitekUniergy engineeringCompanyGreen Energy ---------------Gloria Solar Delta28 CompaniesMCL, ITRI is now studying Technology Sinonar , Tgenergyabakus SolarPyro- Wafer Works Mosel Vitelic, Big Sun>15 companies metallurgical(Shanghai ) ----------------- Motech (Kunshan) NexPower, Formosun III-V Solar Cell in Taiwan Si technology Epitaxy for Solar Cell :3 CompaniesMJC .. Tech--------------- Package of Receiver:4 Companies > 7 Companies Green Energy Kenmos.. Solar Cell Device Processing:2 Companies Concentrator manufacturing: 3 Companies SourcePVTC/ITRI (2007/11) 28 Companies Solar Tracker manufacturing: 3 Companies 172008/1/14Event, Venue information 18. Si -Cell Production Capacity Forecast in TaiwanValid for only one week !!??Unit: MWpFiscal Year2005 20062007E2008E 2009E 2010E2011E Motech60110/200 240420 540 540 - E-Ton 2832.5/100 70/200300 300 300 - DelSolar 620/50 100150 200 250 -GinTech-15/60 210560 >560600 1,500Solartech-- 60 110 >110 --Neo Solar-- 90 210 300 400500Mosel Vitelic-- 30 90 90--Top Green Energy -- 30 90 90--Big Sun-- 30 90 90--Total(estimation)94177.5990 2,020 >2,280 2,200? - Source: PV News and PVTC, ITRI, January 2008. 18 2008/1/14Event, Venue information 19. Si- thin film investment in Taiwan, >250 MWp in 2008Company Name Technology cooperation partners,EPV Sinonar Solar ,EPV Formosun Technology, Nex PowerULVAC,Nano PV Nano Win Tech,Green Energy (Applied Materials) Technology,Sunner SolarULVAC , Sun Well SolarOerlikon ,Nano PV Kenmos Photovoltaic sourceITRI(2007/09) 192008/1/14 GaAsEvent, Venue information investment Excluded 20. PV cluster in Taiwan()()() ()() ()()() () () () () ()()()() ()()()() Note( )20 2008/1/14 Event, Venue information(2007/12) 21. PV Subsidy Programs from Bureau of Energy 50% PV System Subsidy for Residential & Enterprises (max. 150 K NTD/kWp)100% PV System Subsidy for Public Sectors( project based)1.PV for Remote Area and Emergency Center for Disaster2.PV Systems for Traffic Facilities3.2006 Solar CityHualien & Taipei Counties4.2006 Solar TopBIPV for 4 Sites (Tainan City, Kaohsiung City, and Ping-Tung County)5.Solar Campus (40 schools,Co-funding with Ministry of Education)6.Solar Communities project7.Compulsory for Public Buildings8.PV for Agricultural Applications Funding supported by BOE, MOEA is NT$ 430 millions (9.6 millions ) in 2007. (Currency Exchange Rate: 1 = NT$ 45.0) 212008/1/14Event, Venue information 22. PV Cost vs. Pay back period Based on IEA & EPIA conditions and reportstimeSystem life time25 y IRR = 4% Main.fee=0.5%price System priceIEA&JP Morgan report 2007.11.05 Page31)CountryGermanyJapanUSA SpainTaiwanElectricity output 2.4 2.8 3.73.53.1(kWh/kWp/Day)System price193,800 190,000258,00178,000(s 280,000300,00 150,000 (NTD/kWp) 0ubsidy) 0 (Sub.)Feed-in-tariff 27.5 6.8 12.612.621 10 (NTD/kWh) (0.574)(23) (0.39)(0.39) (0.44)Cost 15.27 12.8313.189. 115.1318.309.15 (NTD/kWh)Pay back (y) 10.41 >100 27.2214.85 14.8 >100 21.4referencereferenceITRI PVTC (2007/12)IEAJP1 IEAJP Morgan 2007.11.05 Page15 & Page3122007.11.27148132.3 10.2972007.11.271 481 32.3 0.2973 IEA&EPIA1~3Roof-top IEA&EPIA1~3Roof-top-BerlinCologneMunich -SapporoTokyo Hiroshima -Los Angeles Washington Houston- Berlin Cologne- Sapporo - 22 - Barcelona Madrid 2008/1/14- BarcelonaMadridSevilla - 20071~9 -20071~9 Event, Venue information 23. PV Incentive Program in Major MarketsGermany Spain USA Japan TaiwanEnhanced feed-in tariffsDirect capital subsidiesGreen electricity schemesPV-specific green electricity schemesRenewable portfolio standards (RPS)PV requirement in RPSInvestment funds for PVTax credits (com.)Net meteringNet billingCommercial bank activitiesElectricity utility activitiesSustainable building requirements IEA(2007/11)PVTC (2007/12)IEA(2007/11)PVTC 23 2008/1/14Event, Venue information 24. 2006 Solar City of Taiwan Hualien County 3-2 BIPV Capacity: 200 kWp 24 2008/1/14Event, Venue information 25. 2006 Solar Top (BIPV) of TaiwanNational Museum of Taiwan HistoryTainan City (195 True Love Harbor Kaohsiung City (70 kWp)kWp)3-2 3DHakka Culture Center & ParkNational Marine Life Museum 25 2008/1/14 Pingtung County informationEvent, Venue (75 kWp) Pingtung County (100 kWp) 26. PV Installation in TaiwanAccumulated installation2004 570 kWp in 60 sites2005 966 kWp in 107 sites2006 1,306 kWp in 144 sites2007 2,060 kWp in 243 sites 262008/1/14Event, Venue information(2006/10) 27. The largest single PV system ,50 kWp 27 2008/1/14 Event, Venue information 28. PV System Installed at Tai-Ping IslandTaiwanChinaPhilippines To encourage the off-shore islands to installSouthernhybrid PV systems and to improve the powerChina Sea supply condition Vietnan Tai-Ping 20 kWp Hybrid PV System with DieselIslandGenerator Designed by MRL, ITRI (Finished atNovember, 2001)28 2008/1/14Event, Venue information 29. 2006 Solar City of Taiwan Taipei County4kWp 3 1 1.1kWp PV Capacity: 195 kWp 3-2 2 2008/1/1 294Event, Venue information 30. 1MWp BIPV under Construction in Taiwan Main Stadium of 2009 WorldGames, in Kaohsiung City (1MWp BIPV) 30 2008/1/14 Event, Venue information 31. Taiwan Photovoltaic Industry Association TPVIA 1. A non-profit organization.2. As a discussion and communication platform for government, industries research organizations and universities.3. Promote PV technology for Taiwan PV industry.4. Facilitate international corporation. 31 2008/1/14Event, Venue information 32. Taiwan Photovoltaic Industry AssociationUpper StreamMiddle Stream Down Stream Silicon PV SystemBuilding Item&WaferSolar CellPV Module&Industry Ingots InstallationNo. of Member 3 Members17 Cells, 9 Modules26 MembersEquipments: 21 Members Inverter 6 MembersTotal number of members is 131 ,including: PV ingot, wafers, solar cells, modules manufacturers and suppliers PV related facility manufacturers and materials suppliers PV system installers Balance of system (BOS) component suppliers Universities and Research Institutes(9) Other related electrical components , materials ,manufacturers and suppliers(30)322008/1/14 Event, Venue information 33. Test of Fire- Taiwans PV IndustryWith no domestic market, Taiwan wants to become thePV manufacturer to the world.Taiwan may be small, but its PV dreams are grand.Forget the domestic market, Taiwans PV futurelies in offshore sales. ---Photon International January 2006 E-TonMotechGreen Energy 33 2008/1/14 Event, Venue information 34. Why Taiwans PV Industry can win?1. Industry: ambitious PV players and strongmanufacturing Capability( quick investment, fastscale up and then price killer/ keeper ??). 2. Excellent Infrastructure: based on semiconductor,optical disk, TFT-LCD, and precision machineryindustries experiences. 3. Strong Government support and Committeemen:(Bureau of Energy, Industrial Development Bureau,Department of Industrial Technology, MOEA). 4. RD capability: Universities, PVTC/ ITRI. INERand Chung-San Institute of Science and Technology.34 2008/1/14 Event, Venue information 35. PV Industry ~ Next Energy star !!! EnergyValueOptoelectronicsInformation, etc.. Semiconductors Petrochemicals 60 708090 2000 2010 202035 2008/1/14 Event, Venue information 36. Thank You for Your AttentionVision, Passion, for Sustainable & Sunny Taiwan 36 2008/1/14 Event, Venue information