02 | 2017| 78538

Photo: Pacifico Energy

Photo: Hannover Messe

Markets & Trends
Japan outlook: With FIT cuts and
other policy upheavals, can Japanese
solar stay the course? Page 18
Applications & Installations
Integrated Energy Plaza: Examining
PVs role in an integrated energy
system at Hannover Messe. Page 46
Photo: Nest
Storage & Smart Grids
Smart homes: As the smart home
market begins to consolidate, what
lies in store for consumers? Page 68

photovolta ic markets & technology

Photo: SEIA

New era for US solar

Exclusive interview with incoming SEIA President
and CEO, Abigail Hopper. Page 56
/ Perfect Welding / Solar Energy / Perfect Charging

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WE ARE REVOLUTIONISING THE
ENERGY SUPPLY OF THE FUTURE.

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YEARS le sources: a world of 24 hours of sun. Solar energy plays a key role in this world - both day and
FRONIUS night, summer and winter. This future is already fast approaching as more and more people are
SOLAR converting to solar. To drive this major change forward we are developing technologies that help
ENERGY make solar the cornerstone of our future energy systems. Visit www.fronius.com/solarenergy

Photo: Andrea Jeremias/pv magazine
pvmagazine Senior Editor Ian Clover discussing the Japanese solar market
with Heraeus at last years PV Expo in Tokyo.
From the top
Buffeted by demagoguery, populism has become a dirty
word in recent months. But if we hack away at its modern
(mis)interpretation, the notion of what populism actually
means addressing the concerns of ordinary people tallies
quite nicely with solar PV.
For it is becoming increasingly populist to combat climate
change, nowhere more so than in China, where the dam-
age caused by fossil fuels hangs heavy in the air. Despite the
nations solar surge in 2016, pvmagazine Managing Director
Eckhart K. Gouras discovered on his latest trip to Beijing, a
city still tackling air pollution (p.26). However, the situation
has improved somewhat since his 2015 visit, and across this
vast nation solars positive influence is being felt.
Fossil fuels fug is also clearing in India, where economic and
environmental pressures are leaving the Modi administration
with little choice but to build upon superb solar growth. The
famous National Solar Mission continues to prove transfor-
mative, and having seen installation figures double in 2016 to
4GW, Mercom Capitals Raj Prabhu expects more than 9GW
to be installed in 2017 (p.30).
At 9GW of new solar capacity, India will leapfrog Japan to
become the worlds third-largest solar market in 2017. But this
does not mean that Japanese ambitions are dead and bur-
ied. Far from it a fall from 8.7GW last year to 8.4GW this
year is the mildest of contractions, and means the globe can
now boast four bona fide mega-markets. Japan plays host next
month to PV Expo Tokyo, which is traditionally the first big
solar show of the event calendar (p.18). However, its early-
year thunder is being shared by Abu Dhabi, which in January
hosted another excellent World Future Energy Summit that
once again served to shine a spotlight on the Middle Easts
steady solar progress (p.36). Its all here in this issue!
Ian Clover
Senior Editor
02/2017 |www.pv-magazine.com
From the Editor
Photo: Abby Wilcox/pv magazine
pvmagazine Americas Editor Christian Roselund at the Intersolar North
America 2016 trade show with author John Perlin.
New faces and new places
The last few months have not failed to be interesting. But just
as the United States is under new leadership (if that word
can accurately be used), so is the U.S. solar industry, and this
month we bring you an interview with the freshly appointed
head of the Solar Energy Industries Association (SEIA), Abi-
gail Hopper (p.56). As we reported in our online coverage,
Hopper joins five other women as leaders of major U.S. solar
organizations, showing that the industry is making good on
its promises of gender diversity, at least at the top.
It was interesting to me to hear Hoppers careful statements
about working with a president whose energy policy ideas
would be considered out-of-date in the days of Harry Tru-
man. However, what is more interesting to many of us in the
solar industry is to hear SEIAs plans for more engagement in
the critical state-level policy battles, where the organization
has long had less of a presence.
But try not to get too distracted by the drama in the U.S.,
because that is not where all the action is. This month we
bring you a special feature on Central America (p.22), where
Honduras recently became the (non-island) nation with
the highest portion of annual electricity from solar at 10.2%
in 2016. This is just the beginning, as several nations in the
region are holding auctions that are expected to bring several
hundred megawatts of additional projects online this year
alone.
The march of technology also continues. This month we bring
you an interview with thin film technology providers Von
Ardenne (p.62), as well as a feature on the future of cell con-
cepts by Gtz Fischbeck (p.58).
For the U.S. solar industry and for all of us, there is much
work to be done.
Christian Roselund
Americas Editor
1
Contents

Photo: Pacifico Energy

Photo: Hannover Messe

18 Japanese market 46 Hannover Messe
Some major policy changes look set Benjamin Low, the German trade
to shake up solar PV in Japan this fairs Director shares his vision for
year. 2017s event, where pv magazine
will exhibit alongside some of our
industry partners.

Contents 02/2017
Markets & Trends Applications & Installations

6 News Hannover Messe: Benjamin Low,

46 
Stock index: Solar stocks rising.
10  the Trade Shows Global Director
pvXchange module price index:
12  talks about 2017s event.
Module prices are falling steadily. Guy Rong interview: Arctech
48 
Mints column: Can U.S. PV stay
14  Solars CEO talks growth in the
strong with reduced policy support? tracker market.
PV without the politics: Becquerel
16 
Institutes Gatan Masson discusses
the PV industrys future.
Japanese market: a look at the
18 
upcoming year, ahead of PV Expo.
Breaking new ground: The solar
22 
boom in Central America.
Beijing to Shenzhen: Eckhart K.
26 
Gouras visits China at the end of
countrys biggest ever year for PV.
A crucial year for solar: Mercom
30 
Capitals Raj Prabhu goes into detail
on Indias market.
Building big in MENA: Both
36 
Saudi Arabia and the UAE have
announced big new energy plans.
Dutch opportunities: A latecomer
40 
to PV, the Netherlands is growing.
The California of Europe?: A new
42 
study outlines the potential for solar
in the South of France.

2 02/2017 |www.pv-magazine.com
Contents

Photo: SunPower

Photo: Nest
56 SEIA interview 68 Last chance for energy companies
Newly appointed Solar Energy Industries Association President & CEO Tech giants, telecoms companies,
Abigail Hopper catches up with pv magazine to discuss solar policy and and retailers are moving in on smart
advocacy at both state and federal level in the U.S. homes. Time could be running out
for energy companies to get in on
this growing market.

Industry & Suppliers Storage & Smart Grids

Multi-Contact: Stubli Group

50 
takes over the brand of the electrical
connector supplier.
52 Bows to the string: What are the
advantages of string inverters at
utility scale?
56 Abigail Hopper interview: Solar
Energy Industry Associations
new CEO talks strategy.
58  What comes after PERC?: Smart
Solar Solutions Gtz Fischbeck on
new innovations in module tech.
62 Von Ardenne interview: Kristin
Ldemann, VP of crystalline PV,
on the future of HJT technology.
64 Module workshop: Analysis
from Gtz Fischbeck on TV
R heinlands exhaustive module
performance study.
Last chance for energy companies:
68 
Delta-ees Arthur Jouannic looks at
the developing smart home market.
Storage in Australia: Distributed
70 
storage is hotting up Down Under.
Senec interview: The German com-
72 
panys MD discusses their entry into
the Australian storage market.
Service
74 R&D news
76 On the road with pv magazine
78 Advertisement overview
80 Preview and imprint

4 02/2017 |www.pv-magazine.com
 News
Conflicting votes on solar trade duties by EU trade committee
Two important votes on the antidumping
and anti-subsidy measures against solar
cell and module imports from China took
place in the Anti-Dumping and Anti-
Subsidy Committee of the EU yester-
day. The committee voted to approve the
proposed extension of anti-subsidy mea-
sures, but voted to oppose the extension
of the antidumping measures.
The trade measures were originally
applied in December 2013, as a means of
protecting Europes solar industry, how-
Photo: Sbastien Bertrand
ever, some within the industry feel that
the measures are counterproductive, and
are actually hindering the growth of the
solar industry within Europe.
A minimum import price (MIP) agree-
ment was also set up, for Chinese com-
panies to avoid duties if they sold prod-
ucts at a minimum price. However, price
declines have made the MIP look some-
what out of touch, resulting in the major-
ity of Chinese manufacturing heavy-
weights opting out of the agreement.
Correction
In our December 2016 edition, in the article Solar
vehicles take to the asphalt we stated that Asola
Advanced and Automotive Solar Systems were
manufacturers of a solar panel for the Karma
Revero vehicle. The system was in fact produced
by a2-solar Advanced and Automotive Solar Sys-
tems, which has now taken over the Asola Brand.
6 02/2017 |www.pv-magazine.com
The trade measures had been up for
review within the EC, which has put
forth a proposal to update and extend the
duties for two years. Within the proposal,
an 11% duty would be included as an anti-
subsidy measure, and a 36% duty as an
antidumping measure, while the MIP has
been reduced by 20%. It also includes an
interim review, which is likely to lead to
a gradual reduction in the duties.
We are confident our proposal pres-
ents a balanced way to protect EU solar
cell and module producers from unfair
trading practices, while taking into
account the interests of users, upstream
and downstream companies in the solar
value chain, a European Commission
source told pvmagazine. Therefore, we
proposed to extend the measures for two
years, instead of the usual period of five
years.
Twovotes, twodifferent outcomes
The meeting between a committee of EU
trade experts was to have two non-bind-
ing votes, which could either approve
the proposal, or force it to an appeal. A
source within the European Commission
confirmed that the committee voted to
approve the proposed extension of the
anti-subsidy measures, but that a final
decision was not reached on antidump-
ing measures.
SolarPower Europe CEO James Watson
offered pvmagazine further explanation.
Yesterday there were two votes one on
anti-subsidy and one on antidumping,
said Watson. The anti-subsidy vote
resulted in 14oppositions from Member
States, 15 would have been needed to trig-
ger the appeal. On antidumping 18states
opposed the measures, five abstained
and five voted in favour. The proposal of
the Commission has thus been rejected
and is now subject to an appeal process
where the Commission will be expected
to revise their approach before another
vote from the Member States. This will
take place in the next four weeks.
This is the first time that this appeal pro-
cess has been triggered for an EC pro-
posal, which adds some historical sig-
nificance to the vote. However, the
anti-subsidy duty extension is now out
of the hands of the Member States, and
likely to be adopted by the EC.
We have campaigned for the end of these
trade measures for the last 18 months,
and are pleased that the Member States
have sent a strong rebuke to DG [Direc-
torate General for] Trade for not taking
into account the interests of the Euro-
pean solar industry, commented Solar-
Power Europe President Oliver Schaefer.
It is important to note, however, that
while SolarPower Europe has been the
chief proponent of removing the duties,
other voices within the European solar
industry have been strongly in favor of
keeping them, particularly EU ProSun.
This alternative solar association believes
that the measures have been adjusted
effectively, and fully expects the new pro-
posal to be implemented.
In the EU, eight member states are
home to significant solar manufactur-
ing, while others arent and may believe
it opportune not to openly stand against
China, said EU ProSun President Milan
Nitzschke. However, were convinced
that an extension of the antidumping
measures will be determined during the
next weeks.
The minimum import price has just
been reduced by almost 20%, solar sys-
tems and PV in Europe today are as cheap
as never before, added Nitzschke. This
new, great technology pays for nearly
everywhere in the EU. To leave this tech-
nology completely open to Chinese com-
panies, which operate state financed
dumping, would be fatal.
 Solar Plant & Energy Storage System
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La Reunion

Our customers dream was to find the

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Nidec delivered.

Nidec ASI acted as EPC contractor, supplying a

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solar panels on the roofs of Farm and Fish Hatchery,
inverters, transformers and a Battery Energy
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System is capable of both
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Nidec ASI, turning dreams into results.

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 News
pvmagazine news roundup
The most important solar stories and eye-catching headlines from the past four weeks
Solar provides 4.3% of Japans electricity during 2016
The latest data show solar taking an increasing role in Japans
energy mix, however several provinces are nearing caps on PV
capacity eligible for reimbursement for curtailed power.
Japans Renewable Energy Institute has published data on
renewable energys contribution to the nations energy mix,
using data from the Ministry of Economy, Trade and Industry
(METI). The METI data show solar PV rising to 4.3% of electric-
ity production over the course of 2016, a dramatic increase from
2015, when PV represented only 2.7% of production.
The effect was particularly noticeable in the last two quarters,
when PV represented 5.0% and 6.0% of electricity generation,
respectively.
Together, all renewable energy sources together represented
14.2% of production during 2016, but hydroelectric power is
the majority of this. Japan has limited deployment of biomass,
PhotoPanasonic
wind and geothermal, which makes up the final few percent.
Japan has implemented a system whereby the amount of PV
that will be compensated under the feed-in tariff for more than
30days of curtailment per year is capped at the regional level,
and Hokkaido, Kyushu, Okinawa, and Shikoku are nearing
those caps. Hokkaido is the closest, with 1,059MW of solar
deployed under a cap of 1,170 MW, but the more populous
Kyushu region in the south is also only 1.45GW away from its
cap of 8.17GW.
Honduras is the first nation with 10% solar in its
electricity mix
Honduran state power company ENEE reported that the 10.2%
of the generation in the countrys electrical system corre-
sponded to the total generation of PV power plants in 2016.
This places Honduras as the first non-island nation to achieve
a 10% share of solar energy in its national electricity mix.
Honduras also tops the charts as the country with the most PV
capacity in Central America, with 433MW of solar installed
by the end of 2016, and is second in the whole of Latin America
8 02/2017 |www.pv-magazine.com
behind Chile, where more than 1GW of PV has been installed.
Public company ENEE, whose electric system covers practi-
cally all of Honduras, reports that last year its plants added
8,673GWh of generation that was purchased privately. Of that,
885GWh corresponded to PV plants. Overall, renewable energy
accounted for 52% of the Honduran power grid.
Last year, solar made up close to 5% of the electricity mix
in Honduras. In 2015, 388MW were installed, and last year
another 45megawatts of photovoltaic power were added.
Marubeni to develop worlds largest PV plant in UAE,
according to reports
Japanese conglomerate Marubeni is planning to build a 1.18GW
PV plant, the largest in the world, in the United Arab Emir-
ates, with support from JinkoSolar and the Abu Dhabi Water &
Electricity Authority, according to Japanese newspaper Nikkei.
Photo: Siemens
Not known to do things in halves, the UAE looks set to give the
all-clear for another mega solar project, as reports from Japan
claim that local company Marubeni is planning a huge 1.18GW
plant in the country. It is not clear at what stage of planning the
project is at, or what licensees have so far been achieved, but if
reports are accurate, it would be the largest solar plant on earth.
The plant is set to be developed on a 7.8km2 plot in the des-
ert in eastern Abu Dhabi, and would be built using JinkoSo-
lar modules. This might be due to the reported financial assis-
tance of Jinko on the project, who is said to be accounting for
20% of the financing.
The Abu Dhabi Water & Electricity Authority is said to be put-
ting up 60% of the financing and Marubeni the final 20%, with
total investment expected to be in the region of JPY 100billion
($868million).
The deal for the plant is expected to be signed next week, when
we may see an official announcement from Marubeni regarding
the plant. Current reports claim that the electricity will be sold
on a 25 year power purchase agreement, with the plant expected
to enter operation in 2019.

Eos Energy Storage & Siemens launch storage
partnership
Eos and Siemens have jointly produced an energy storage sys-
tem that includes AC conversion. The design enables modu-
lar installation, which Eos says will reduce maintenance costs
throughout the products lifetime.
Working with Siemens is an exciting step for us and the energy
storage industry, says Eos CEO Michael Oster. By combining
Eos cost and performance advantage with Siemens capabili-
ties in system integration and project execution, we are able to
offer solutions that set a new benchmark for energy storage reli-
ability and effectiveness.
The product is based on Eos Aurora range of batteries offering
14MWh of DC storage with a guarantee supporting up to back in 2010, as it is now the second biggest supplier of inverters
20years continual operation. Siemens is providing additional
technology to support and integrate the batteries.
Photo: SMA
Our goal is to standardize energy storage products with focus
on reliability and return on investment, said Siemens VP Brian
Dula. By offering a solution with supporting services, Siemens
will help customers realize the full benefits of the Eos Aurora
Battery.
Ukraine: 39groups apply to build solar plants in
Chernobyl wasteland
According to the Ukrainian Minister for Ecology and Natural
Resources Ostap Semerak, Ukraines State Agency for Manag-
ing the Chernobyl Exclusion Zone had received 39applications
for the allocation of land parcels to build solar power plants in
the zone as of January1, 2017. At the same time it was announced
that the deadline for submitting bids for the 11.7square kilome-
ter solar PV project was extended until March1, 2017.
As early as November 2016, Chinese solar firm GCL System
Integration, a subsidiary of GCL-Poly, said in a press release
that it would cooperate with China National Complete Engi-
neering Corp on the project in Ukraine, as part of the groups
plan to build an international presence.
02/2017 |www.pv-magazine.com
News
Since the worlds worst nuclear disaster in 1986, 2,600square
kilometers of forest and marshland around the Chernobyl reac-
tors has been marked as exclusion zone due to high levels of
radiation. In 2016 the Ukrainian government announced the
plan to turn the Chernobyl wasteland into a 1GW solar farm.
SMA claims over 25% of the Indian inverter market in
2016
German PV inverter supplier SMA Solar Technology shipped
over 1GW of solar inverters to the Indian utility-scale PV mar-
ket in 2016, which accounted for 26% of the entire market, of
which SMA is the second-largest inverter supplier.
SMA is not regretting its gamble on the Indian solar market
to the countrys thriving PV market. The company is enjoying
its position, and expects to grow within the market, although
Photo: Julien Lavalle/Flickr
other major inverter suppliers are also eyeing expansion into
the country.
The statistic coming from the German company today is that
it supplied over 1GW of solar to utility-scale projects in India
in 2016. This activity was supported by the companys sales and
service subsidiary that it opened up in India in 2010, which
enables the company to offer a whole range of inverters and
various products onto the market.
SMA has nearly doubled its total installed inverter base in
India in 2016 alone, commented John Susa, SMA Executive
Vice President Sales Asia Pacific. Among other projects, our
central inverters have been used to build the largest solar power
plant in India to date. This is a great success, as the Indian mar-
ket is of strategic importance for SMA.
With a 3.9GW utility-scale PV market in 2016, SMA accounts
for over one quarter. The company has said that it is strongly
committed to the market, which seems to be a good business
decision, as it is set to double in 2017. SMA plans to take advan-
tage of this with significant resources and a local presence in
the country.
9
 Markets & Trends|Stock Price Index

Sweet 17
Stock index: The new year has gotten off to quite a start politically, and the stock
market has responded in kind.

Solar stocks got off to a strong start in

Graphic: pv magazine/Harald Schtt

Guggenheim Solar ETF (TAN) Holdings
the new year, with particularly encour-
aging performances seen in the U.S. mar- 10% 10%
kets. The Guggenheim Solar ETF (TAN)
gained4.3% in the month of January 2017,
compared to dropping by43.2% over the
whole of 2016. For comparison, the Dow 5% 5%
Jones gained +0.5% in January (com-
pared to +13.4% in 2016), the Standard &
Poors 500 (S&P 500) gained +1.8% (com-
pared to +9.5% in 2016), and the Russell
0% 0%
2000 gained +0.3% (compared to +19.5%
in 2016).
The broader United States market has
seen stocks rally following President
5% S&P 500 5%
Donald Trumps powerful assurances
Russell 2000
that he is planning to work on restor-
Guggenheim Solar ETF
ing the countrys economy and man-
Source: Roth Capital
ufacturing industries. On January 25,
mere days after Trump moved into the 10% 10%
White House, the Dow Jones hit its all- January 1, 2017 January 8, 2017 January 15, 2017 January 22, 2017 January 29, 2017
time high, closing above 20,000 for the
first time in its entire history. Month close price % change % change
Company Ticker (Jan 31, 2017) (Jan 131, 2017) year to date
Two of the top eight largest gains in
January came from solar equipment SolarWorld AG XTRA:SWVK 4.04 EUR + 66.0% + 66.0%
manufacturers. The solar energy indus- Enphase Energy, Inc. NasdaqGM:ENPH 1.49 USD + 47.5% + 47.5%
try has seen several large production tool Amtech Systems, Inc. NasdaqGS:ASYS 5.40 USD + 27.1% + 27.1%
order announcements recently, poten- Daqo New Energy Corp. NYSE:DQ 24.42 USD + 26.5% + 26.5%
tially pointing to a rebound in capital Vivint Solar, Inc. NYSE:VSLR 3.05 USD + 19.6% + 19.6%
expenditure spending in the solar indus- Sino-American Silicon Products GTSM:5483 39.80 TWD + 19.2% + 19.2%
try, despite the continuing overcapacity Meyer Burger Technology AG SWX:MBTN 0.79 CHF + 17.9% + 17.9%
coming from China. Wacker Chemie AG XTRA:WCH 111.60 EUR + 12.9% + 12.9%
In the month of January 2017, five of REC Silicon ASA OB:REC 1.29 NOK + 12.7% + 12.7%
the eight most significant declines in the TerraForm Global, Inc. NasdaqGS:GLBL 4.40 USD + 11.4% + 11.4%
solar sector came from Chinese PV mod- Atlantica Yield plc NasdaqGS:ABY 21.40 USD + 10.6% + 10.6%
ule manufacturers. The solar industry in AU Optronics Corp. TSEC:2409 12.90 TWD + 9.3% + 9.3%
China continues to be constrained by GCL-Poly Energy Hold. Ltd. SEHK:3800 1.01 HKD + 8.6% + 8.6%
massive overcapacity, as we see several E-Ton Solar Tech Co., Ltd. GTSM:3452 9.83 TWD + 7.7% + 7.7%
production facility expansions in south- Trina Solar Ltd. NYSE:TSL 9.99 USD + 7.4% + 7.4%
east Asia and a significant drop in domes- Xinyi Solar Hold. Ltd. SEHK:968 2.69 HKD + 6.7% + 6.7%
tic solar PV demand in the second half of Gintech Energy Corporation TSEC:3514 20.65 TWD + 6.7% + 6.7%
2016, following the cut to the feed-in tar- Green Energy Technology Inc. TSEC:3519 17.15 TWD + 6.5% + 6.5%
iff, which took effect at the end of June Neo Solar Power Corporation TSEC:3576 15.95 TWD + 5.6% + 5.6%
2016. Motech Industries, Inc. GTSM:6244 29.85 TWD + 5.5% + 5.5%
According to Chinas National Energy SolarEdge Technologies, Inc. NasdaqGS:SEDG 12.95 USD + 4.4% + 4.4%
Administration (NEA), the country 8point3 Energy Partners LP NasdaqGS:CAFD 13.54 USD + 4.3% + 4.3%
installed approximately 34.2 GW of China Singyes Solar Technologies Hold. Ltd. SEHK:750 3.79 HKD + 2.4% + 2.4%
solar PV in 2016, around two thirds of Shunfeng International Clean Energy Ltd. SEHK:1165 0.50 HKD + 2.1% + 2.1%
which was installed in the first half of the Yingli Green Energy Holding Company Ltd. NYSE:YGE 2.65 USD + 1.9% + 1.9%
year. S Information upon which this material has been compiled by pv magazine and is based was obtained from sources
believed to be reliable but has not been verified. Additional information is available upon request.
 Jesse Pichel, ROTH Capital Partners

10 02/2017 |www.pv-magazine.com
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Intersolar Summit USA East | New York | March 23, 2017

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 Markets & Trends|Module Price Index
Back to
the old size
Module price index: As module prices continue their downward trajectory,
demand has seen a bit of a jump. Could 2017 be a big year for solar?
Module prices are falling steadily, and
the November installation figures for
Germany already show an increase of
around 50% compared to the previous
month. While the exact figures have not
been released yet, December looks likely
to deliver similarly positive installation
results. The one gigawatt mark may be
slightly exceeded in 2016, which is most
likely thanks solely to the current drop in
prices. However, following an across-the-
board decrease in December by an aver-
age of 2% in nearly every region of ori-
gin, prices have stabilized noticeably in
January.
The jump in demand over the past few
weeks has already prompted some manu-
facturers to report their first bottlenecks
and supply problems of the year. How-
ever, they should be able to take up the
slack again in February, so customers will
just need to have a little bit of patience.
Many orders had already been placed in
December, even though the correspond-
ing projects will not be completed until
sometime in the first quarter of this year.
For planning security reasons, master
agreements are once again being nego-
tiated. But because it is not entirely clear
in which direction module prices are
headed, flexible price clauses are increas-
ingly finding their way into these agree-
ments some suppliers and manufac-
turers are quite open to such practices.
Buyers able to incorporate these clauses
into their contracts should stipulate that
the final price for each individual pur-
chase should be dependent on the devel-
opment of the market price relative to the
negotiated price at the date of the signing.
The reference for any price adjustments
made should be a generally recognized
photovoltaics price index.
But it is still quite difficult to pro-
vide a reliable forecast for the whole of
2017. Overall, the prospects for this year
12
pvXchange: EU spot market module prices
0.80 /Wp
0.70
0.60
0.50
0.40
Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17*
Crystalline modules
(mono-/poly-Si) average net prices (EUR/Wp)
Germany
Korea/Japan
China
South and Southeast Asia
* Data up to January 14, 2017
are shaping up to be very good, because
there is pent-up demand, particularly for
systems intended for German ground-
mounted PV plant auctions. An increase
in the EEG feed-in tariff is also expected
in February. Although some analysts are
still cautiously optimistic, all project a
noticeable increase over last years instal-
lation figures. The forecasts for the year
ahead range from 1.4GW in Germany up
to more than 2GW. It is even possible
that the German government target cor-
ridor of 2.3 to 2.5GW could be exceeded,
which would result in double 2016s
figure. For Europe as a whole, a solid
increase is expected, but will likely be a
bit more staid because the United King-
Graphic: pv magazine/Harald Schtt
/Wp 0.80
0.70
0.60
0.50
0.40
With more than 10,000 registered trade customers,
pvXchange is one of the worlds biggest brokerage
platforms for solar modules and inverters. Ten years
of experience in the market and the expertise of more
than 20,000 successful business transactions are the
basis for pvXchanges monthly analyses of the module
price developments in the European PV market.
More information: www.pvXchange.com
doms contribution to installed capacity
will probably have little effect this year.
What else could have a negative impact
on industry development? The European
Commission is still clinging to its pro-
tectionist measures and its minimum
import price for Chinese modules. How-
ever, the level of the minimum price
going forward is still up in the air. It may
be that the commissioners are simply
succumbing to the pressure of individ-
ual actors but do not even believe anyone
still cares about the measures. Chinese
manufacturers have long since adapted
to the situation and built up large pro-
duction capacities in regions outside of
China, where imports are free of punitive
02/2017 |www.pv-magazine.com
 Module Price Index|Markets & Trends

tariffs. Only a radical tightening of the
policy conditions could stem the come-
back of Asian modules on the European
market.
Punitive tariffs would have to be
imposed on all products produced out-
side the European Union. But that in turn
would deal a hefty blow to some well-
known European brands like IBC, REC,
Luxor, Q-Cells, and even SolarWorld. We
can, therefore, expect that the large Chi-
nese manufacturers will soon come back
to reconquer the European photovoltaics
market. After dropping off the radar for
the past two or three years, the Chinese
tier-1 manufacturers including Suntech,
Trina and several others none of which
are currently part of the undertaking
are piling back into the European mar-
ket and offering very attractive prices.
Most notable among these are Hanwha
Q Cells, Canadian Solar, and Jinko Solar,
all of which have formulated ambitious
sales targets.
A big downward move in prices is
probably not on the cards at this stage,
as that already happened in the pre-
vious quarter. Prices for standard PV
modules will initially cluster around the
0.40 mark, perhaps dropping slightly
below that for high volume orders. But at
that price level, nearly any type of proj-
ect can be implemented economically
there is no longer any reason for develop-
ers to hold off before starting a project.
But this will ultimately belie the claims
of proponents of EU punitive measures
who have denied the connection between
market price and market development,
because political conditions in Europe
have not changed fundamentally since
last year. S Martin Schachinger, pvXchange.com

Overview by technology of different price points in December 2016, including the changes over the previous month:
Price
Module class Change over Description
(/Wp) previous month
Crystalline modules, 280Wp and above with cello-, PERC, HIT, n-type, back contact cells,
High efficiency 0.56 -5.1%
or a combination thereof
Module types with black back sheets, black frames, and a nominal capacity between
All black 0.52 0.0%
200Wp and 275Wp
Modules with usually 60 cells, standard aluminum frames, white back sheets and 250 to
Mainstream 0.44 -2.2%
275Wp represents the majority of modules on the market
Low-performance modules, factory seconds, insolvency goods, used modules
Low cost 0.28 -12.5%
(crystalline), and products with limited or no manufacturer guarantee
The prices shown reflect average asking prices for duty-paid goods on the European spot market

Advertisement
 Markets & Trends
An engineer oversees installation at SunEdisons facility in Aurora, Colorado. Low bidding on PPAs could have
been a contributing factor to the companys failure.
US solar: myths and
alternative facts
Policy support: Deployment of solar PV in the U.S. for larger commercial and multi-
megawatt commercial projects is currently strong. It may continue to be strong, but
ongoing momentum is not ensured.
During a recent interview, Press Secre-
tary Sean Spicer defended the use of the
phrase alternative facts as follows: The
press is trying to make it seem like we
were ignoring the facts. The facts are,
sometimes when you look at a situa-
tion, in the same way that you can look
at a weather report. One weather report
comes out and says its going to be cloudy
and another says its going to be light
rain. No one lied to you; it just means you
interpreted the data in a way that you felt
got you to a conclusion.
Translation: Spicer was referring to
how forecasts of the weather can differ.
During his monologue on the Janu-
ary27 show Real Time with Bill Maher,
Maher said the following: Yeah, weath-
ermen do sometimes disagree on what
the weather will be like tomorrow, but
not on what it was like yesterday.
Translation: The facts of the past can-
not be altered to fit a different viewpoint.
14
The solar industry alternative fact
analogy
Given the wealth of differing forecasts in
the solar industry Sean Spicers statement
about weather forecasting makes a valid
point; that is, the future has not happened
and all anyone can do is use the best tools
in their research toolkit to offer reality-
based careful scenarios of what may hap-
pen. Unfortunately, official government
or institutional announcements about
market size have begun to take the place
of careful research. As official and accu-
rate are not synonymous, it may be time
to return to hard research and indepen-
dent analysis of data to deliver forecasts
that can then be carefully explained.
Back to the weather, unfortunately,
though everyone can agree on whether or
not it rained yesterday, in the solar indus-
try no one can agree on the size of the
industry in the past, nor do many explain
the methodology in place to arrive at past
Photo: Dennis Schroeder/NREL
numbers or what was being counted in
the first place to arrive at those numbers.
When an analyst declares the accuracy
of their past forecasts this is really not a
meaningful statement.
U.S. solar momentum
Renewable deployment continues to rely
on government policies, incentives, and
subsidies. The only consistent thing about
government policies, incentives, and
subsides is their inconsistency. Figure1
(p. 15) offers the peaks and valleys of
select markets for solar PV in Europe
from 2005 through 2015.
President Trump wants to make signif-
icant budget cuts, and the Department of
Energys Office of Energy Efficiency and
Renewable Energy is on the chopping
block. Should budget cut plans come to
fruition it is unlikely that federal grants
and loan guarantees will be available for
solar projects.
During his hearing, former Texas Gov-
ernor and Energy Secretary Nominee
Rick Perry said I believe the climate is
changing. Some is naturally occurring
and some by man-made activity. Perrys
stance on climate change is itself a change
from previous denials. Perry also said
that he would protect scientific research
whether it was related to the climate or
other programs. Perry has also said that
he is committed to an all of the above
policy.
The incoming Energy Secretary will
represent an administration that denies
02/2017 |www.pv-magazine.com
 Markets & Trends

climate change, and this is a generous

view. The Energy Secretary will have to
be tough in order to hold on to programs
that the president has stated he would like
to defund. The Energy Secretary serves
at the will of the President, and can be
dismissed by the President. In a fight of
principle between the President and the
Energy Secretary, who would win?
The Investment Tax Credit (ITC)
was bipartisan. With tax reform on the
table the ITC could be changed or elimi-
nated entirely after, one assumes, a grace
period. Rule changes to the ITC could do
significant damage.
There are those in the U.S. who assume
that solar deployment has enough
Graphics: pv magazine/Harald Schtt
SPV Market Research
Paula Mints is the Founder and Chief Market Research Analyst of the
global solar market research firm SPV Market Research. Paula began
her solar market research career in 1997 with Strategies Unlimited. In
2005 she joined Navigant where she continued her practice as a Direc-
tor in Navigants Energy Practice until October 2012, when she founded
SPV Market Research.
Paulas areas of expertise include: global markets and applications for
solar products, cell and module cost and price analysis, system and sys-
tem component analysis (including inverters, trackers and other BoS
components), and trend analysis.
momentum to carry it forward without port this point of view are the low prices
incentives or subsidies. The anecdotal of modules. Current low prices of mod-
data points most often referenced to sup- ules and other components do not cover
the cost of manufacturing these mod-
ules and components, nor do they sup-

Select markets in Europe 2005 through 2015

port running an entire business.
8,000 MWp Low PPA rates are also often cited as

Source: SPV Market Research

Czech Republic 10-year CARG 35% proof that the solar market in the U.S.
France 10-year CARG 64% no longer needs government support,
7,000
Germany 10-year CARG 9%
Greece 10-year CARG 62%
including the ITC. In reality, a signed
6,000 Italy 10-year CARG 32% PPA is required for financing and is
Netherlands 10-year CARG 63% often too low to support a profitable proj-
5,000 Spain 10-year CARG 8% ect. Before SunEdison failed, executives
UK 10-year CARG 100%
were working to renegotiate low PPAs.
Peak
4,000 The failure of SunEdison was an outcome
that was telegraphed by company behav-
3,000 ior years before it became a fact, and low
bidding on PPAs was certainly part of it.
2,000 This year will be a strong year for U.S.
solar PV deployment. Development for
1,000 deployment of multi-megawatt projects
began years ago. It was not derailed by
0 previous anxiety over the ITC.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Projects currently in the pipeline where
building has not begun could well be
US solar PV forecast through 2020 derailed if there are significant changes
to the ITC. It is worth noting that many
40,000 MWp of the same people who previously stated
Source: SPV Market Research

History and US low forecast CARG 9% 200152020 that solar deployment was dead without
US conservative forecast CARG 27% 200152020 the ITC are now saying they no longer
35,000
US accelerated forecast CARG 35% 200152020
need it.
30,000 Figure2 (to the left) offers a forecast of
U.S. solar PV deployment through 2020.
25,000 This forecast is heavily weighted by large
commercial and multi-megawatt solar
20,000 deployment. Microgrids and commu-
nity solar fall into the commercial appli-
15,000 cation. The residential application is
currently facing headwinds because of
10,000 state-by-state changes to net metering.
Currently the accelerated forecast is
5,000 business as usual for the U.S. However,
changes to the ITC and more pressure on
0 net metering could lead to the low fore-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 cast in 2019 and 2020. S
 Paula Mints

02/2017 |www.pv-magazine.com 15
 Markets & Trends

Photo: SunPower
Solar Star power plant near Rosamond, California. PV projects in many countries now have to prove they are cost-
competitive with fossil fuels, as policy support is being withdrawn.

PV without the politics deployment is stable but has proba-

Industry future: Cofounder and Director of the Becquerel Institute, Gatan Masson
examines PVs position in the shifting political landscape. With policy support declining
in many countries, can PV find a way to escape from this corner and continue to lead
the transition to renewable energy?
We love to call ourselves revolutionaries:
We are changing the world paving the
way for the energy revolution that will
erase the ancient energy order to bring
the bright new clear one. We understand
that 97% of climate researchers consider
global warming a human-made issue;
we understand that decarbonization
requires the rapid phasing out of fossil
fuels. We understand that the LCOE of
PV has reached a record-low that makes
it competitive in many places globally.
However, we forget or refuse to see that
political opponents increasingly chal-
lenge our fact-based vision of a clean,
green future. After years of economic cri-
sis, the part of our societies that havent
accepted such radical transformation is
about to refuse this change, and express
its concern through political vectors that
were considered not so long ago as unac-
ceptable. Oil exploitation and coal min-
ing are perceived as the cornerstone of
the society that should be preserved.
In many countries, opponents of PV
are complaining about the past costs of
the first installations, finding opportun-
ist policymakers to support their angry
fight against those who allegedly bene-
fited outrageously from past incentives.
cles are becoming popular. In the mean-
There are many countries where PV
development was significantly slowed
down due to strong opposition from con-
sumers afraid of rising electricity bills.
While in most cases fact-based analysis
shows that solar PV systems had a rel-
atively low contribution to increasing
energy prices, the idea that PV is damag-
ing the economic situation of the lower
and middle class is still widespread.
De-politicizing PV
A significant part of the PV market is in
the hands of policymakers. From China
to the U.S., incentives or tenders are pol-
icy-driven. In that respect, we could
worry about new administrations elected
on a populist agenda. We believe that PV
has reached a significant level of develop-
ment and competitiveness that will make
its further progress guaranteed. I think
we are wrong and the emotion-based
politics emerging in Western countries
should ring the alarm bell and push the
whole PV industry to reshape itself.
Market facts
The facts are clear: With 75GW installed
last year, the situation of the PV indus-
try has never been so bright. Wind
bly been beaten by PV for the first time
with regard to annual installations, bat-
tery costs are falling, and electric vehi-
time, demand for oil grew last year from
around 96 to 97million barrels per day.
Converted into usable energy, this repre-
sents roughly 190TWh (with a 33% aver-
age efficiency) compared to around
100 additional TWh produced by the
75GW of PV. Together, newly added PV
and wind plants have produced more
energy than the increase in oil produc-
tion. These are the facts, and they are as
strong as PPAs granted at $0.03/kWh.
If we look closely at the big differences
in the market between 2015 and 2016,
the most impressive feat comes from the
growth of the Chinese PV market, which
rose from 15to 34GW. Other established
and emerging markets shares also con-
tinued to increase, with around 7 GW
installed.
Europe is the weak link in the 2016 PV
market. The end of the boom in the U.K.
confirms the weakness of the post-incen-
tive market in Europe, even the countries
with the best conditions for prosumers
are showing a rather low market uptake.
Italy continues to disappoint with around
400MW installed.
The current level of the German PV
market around 1 GW could soon
transform France, the nuclear cham-
pion, into the European PV champion by
default. All in one, European countries
make up less than 10% of the global PV
market, which is more a result of poorly
adapted policies rather than high mod-
ule prices.

16 02/2017 |www.pv-magazine.com

The market grew by 25GW from 2015
to 2016, with China representing 19GW
of that growth and the USA the remain-
ing part. The remaining increase has
roughly been absorbed by the contrac-
tion in Europe and Japan. Market devel-
opment was driven by public policies
in two countries, both of which have
also sent negative signs: China reduced
its 2020 target a few months ago, from
150GW to 110GW (even if some local
experts watered down the impact of
this announcement), that highlight the
uncertainties associated with the larg-
est market by far. In the USA, the Trump
administration has so far shown neg-
ative signs, with an apparent willing-
ness to promote the fossil fuel industry.
The optimism of solar proponents who
believe that the 200,000solar employees
will outpace the 65,000miners from the
coal industry shouldnt forget the cur-
rent tendency of the new administra-
tion to present alternative facts to sup-
port its policies. Supporting the failing
coal industry is one of them.
As long as PV is perceived as a part
of the green way-of-life, it will be in the
hands of senseless policymakers playing
Markets & Trends
with it as a potential sacrifice to their vot- The role of energy in society and its
ers. In a world where facts are becoming economic impact will keep it at the core
less important, and where some politi- of the policy debate. We absolutely need
cians are elected to preserve at all costs to de-politicize the energy transition, and
the existing but failing old ecosystem, we especially PV, to avoid politics hampering
should be careful with our demands and its development. PV must provide bene-
positioning. fits to everyone; it must bring advantages
In that respect, the current anti-anti- also to the poorest and the ones afraid of
dumping-tariffs movement might prove the energy transition. It must prove it can
dangerous for PV in Europe. Of course, create well-paid and interesting jobs, not
gaining full access to cheap PV modules only in services but also in industry, to
(rather than the current constrained replace and compensate for the losses in
access) will accelerate competitiveness. the conventional energy industry. Under
But job losses in the remaining factories these conditions, it will become not only
and the negative message that PV con- the flagship of those who believe it will
tributes to de-industrialization, wont transform the world for the happy few but
unlock mentalities, and will continue to a cause everyone could be willing to fight
confine PV to the revolutionary corner. for. S Gatan Masson
About the author
Gatan Masson is the Director and cofounder of the Becquerel Institute.
After more than 10years in the financial and IT sectors, he moved to the
PV industry and developed the Business Intelligence sector of the Euro-
pean PV Industry Association (EPIA). Since 2013, he has been the Operat-
ing Agent (chairperson in IEA language) for Task1 of the PV program of
the International Energy Agency (IEA PVPS). He is Vice-Chairperson of
the European PV technology Platform and participates in the Scientific
Committee of the EU-PVSEC and Intersolar Europe Conferences.
Advertisement
 Markets&Trends

Photo: Sakaori/Wikimedia Commons

Komekurayama Solar Power Plant, a 10MW project located in Yamanashi Prefecture. Japans utility-scale sector
has slowed down in the face of FIT cuts and curtailment issues.

Utility scale slipping

Japan Outlook: Feed-in tariff cuts and a new reverse auction system are just two
of the more significant shifts among a whole heap of policy changes set to shake up
Japanese solar over the coming year. As the countrys biggest solar trade show PV
Expo Japan approaches once again, pvmagazine takes a look at whats in store for
solar in the country.

The reduction of Japans feed-in tariff
(FIT) for solar from the start of the next
fiscal year in April, as well as the intro-
duction of a reverse auction system for
utility-scale projects, are among the
most anticipated changes in store for the
countrys PV market in 2017. Planned tar-
iff cuts and a new bidding system for big
projects are only part of a broader series
of reforms announced that will pro-
foundly reshape Japanese solar develop-
ment in the years to come.
The Ministry of Economy, Trade and
Industry (METI) has approved roughly
80GW of PV capacity since the intro-
duction of the FIT system in July 2012.
Statistics from the International Renew-
able Energy Agency (IRENA) show that
Japans cumulative solar installations
hit approximately 33.3GW at the end of
2015, suggesting that roughly 50GW of
approved capacity remains unbuilt.
The realization rate is low for large-
scale projects, says IHS senior solar

18 02/2017 |www.pv-magazine.com

analyst Susanne von Aichberger. The
government has therefore implemented
several legal changes to the FIT program
aimed at reducing the share of projects
that have been put on hold.
Significant change
One of the most significant changes is a
new rule requiring developers that failed
to sign grid-connection agreements
by the end of July 2016 to finish their
approved projects within three years
from the start of the next fiscal year on
April1, 2017.
It remains to be seen how METI will
deal with projects if they are not com-
pleted on time. However, its likely that
the ministry will scale down the FIT rates
granted to such developers by a certain
percentage for each year their projects
remain uncompleted beyond April 1,
2020. METI may also simply decide to
shorten the FIT periods for such instal-
lations from the usual 20years, according
to international law firm Baker McKen-
zie. The three year rule is likely to have a
major impact on the feasibility and bank-
ability of many approved solar projects,
the law firm said in a research note pub-
lished earlier this year.
However, other amendments to Japans
FIT legislation will ensure that some of
the 50GW of METI-approved capacity
that remains unbuilt will be finished in
the year ahead. In particular, one change
that could facilitate the completion of
stalled projects is the elimination of a
rule that has prevented developers from
changing PV module suppliers after
their projects have been approved by the
ministry.
However, CIS solar specialist Solar
Frontier which expects Japan to account
for around 65% of the 950MW of solar
panels it will ship throughout the world
in 2017 sees an opportunity in the relax-
ation of this rule, which has been one of
several factors contributing to project
delays.
A company spokesperson, however,
does acknowledge that as much as half
of the 50 GW of projects that are cur-
rently sitting in a so-called holding pat-
tern will go unrealized. The Tokyo-
based manufacturer plans to leverage
its relationships with companies such as
Japan Renewable Energy (JRE) to provide
its thin film PV modules to developers
that will start looking to change suppli-
ers in 2017.
02/2017 |www.pv-magazine.com
Another key amendment to the FIT
that will facilitate completion is that
developers will be able to reduce the sizes
of their unfinished projects by as much as
20% without losing their locked-in FIT
rates. This is important because many
projects in the early years of Japans FIT
regimes were approved before adequate
land surveys were conducted. By allow-
ing holders of those approvals to scale
back their plans to correspond with the
space limitations of their planned con-
struction sites, METI will make it easier
for numerous stalled projects to be com-
Hosoe, a 96.2MW plant currently under construction in Miyazaki Prefecture. Pacifico Energy says that
while few projects will be completed in 2017, both 2018 and 2019 will be much bigger years.
pleted. We are ultimately predicting a
scale of 20-30GW (of the unbuilt 50GW)
to actually come into operation, says a
Solar Frontier spokesperson.
Financing issues
Taken together, these changes to the FIT
law which the government will enact
from the start of the next fiscal year in
April 2017 could significantly reshape
Japans utility-scale solar market in the
years to come. The existing pipeline will
be reduced after March31, 2017, says von
Aichberger at IHS.
The research firm expects Japan to
announce 8.7GW of PV installed in 2016,
and then 8.4GW over the next 12months,
which is considerably lower than the
13.2-14.3 GW forecast that Bloomberg
New Energy Finance (BNEF) issued last
February and down from about 10GW of
new capacity additions in 2015.
Markets&Trends
Von Aichberger and other industry
players are reluctant to speculate on how
much Tokyo will lower the FIT, which
is currently set at JPY 24/kWh ($0.21)
for projects above 10 kW in size and
JPY 3133/kWh ($0.29) for systems below
10kW in size. However, media reports
that surfaced in mid-December suggest
that the authorities plan to completely
eliminate the solar FIT in gradual stages
by 2020.
Beyond the declining FIT, a num-
ber of other factors have been weigh-
ing on growth at the utility-scale since
Photo: Pacifico Energy
last year. Suitable sites on which to build
large projects are becoming increasingly
scarce. And the spectre of unlimited cur-
tailment a right granted to utilities in
early 2015, after Kyushu Electric and
other power companies began temporar-
ily denying grid access to solar develop-
ers on claims of network instability has
made it increasingly difficult to finance
big projects.
We think the actual curtailment risk
is very low, but [we] dont want to deal
with trying to finance those projects with
unlimited curtailment risk, says Nate
Franklin, Country Manager for Pacifico
Energy. We avoid areas/utilities sub-
ject to unlimited curtailment. We think
theyre too hard to finance.
Due to the decline of the FIT rate in
recent years, the Tokyo-based company
also does not consider building any proj-
ects that are below 50MW in size.
19
 Markets&Trends
Photo: Kyocera
A rooftop array featuring Kyocera modules. The company says that Japans trend for self consumption is
opening up new areas in which to innovate.
The developer which completed
nearly 132 MW at three sites over the
past year does not expect to finish any
projects in 2017. However, while Frank-
lin acknowledges that the utility-scale
opportunity in Japan is shrinking, he
remains optimistic about the upcoming
launch of the new reverse auction system.
We still see opportunities for large-
scale projects, he says, noting that
METI appears set to auction off as much
as 1.5GW of utility-scale capacity in the
upcoming fiscal year. We plan to partic-
ipate in those auctions. He also says that
2018 and 2019 when Pacifico Energy
expects to finish a 96.2 MW array in
Miyazaki Prefecture will be big years
for completed projects.
But with less capacity set to come
online in the years ahead, its also possi-
ble that Japans major utilities will grad-
ually become less resistant to accept-
ing more variable renewables into their
service areas. That could open up more
opportunities to install batteries, as stor-
age solutions have barely been deployed
at the utility-scale in Japan thus far, aside
from a handful of state-linked demon-
stration projects.
We would love to see utilities offer
limited curtailment in exchange for
doing storage [it] could really help the
market to develop, Franklin says. But
now there is no contractual benefit to
doing so, as unlimited curtailment still
applies, though the actual risk could be
mitigated.
20
New opportunities
While the importance of the utility-
scale market is fading, other long-antic-
ipated opportunities will start to open
up in 2017. For example, project owners
are now required to demonstrate compli-
ance with new operation & maintenance
(O&M) requirements. And companies
such as Kyocera which currently ser-
vices 280MW of PV throughout Japan
plan to expand their focus on the grow-
ing O&M business in the years to come.
The Kyoto-based group is also increas-
ingly focusing on installing industrial-
use arrays it has several in develop-
ment at the moment in response to
the fading importance of utility-scale
build-out. We will continue to steadily
implement such projects, says a Kyocera
spokesperson.
The company also sees a range of new
opportunities in the increasing focus
on self-consumption of solar-generated
electricity, which is intensifying with
the growth of the residential PV market,
despite expectations that the government
will cut the FIT rate for small rooftop sys-
tems in the upcoming fiscal year.
It is expected that tariffs will fall below
the electricity rate in the near future, with
the market shifting from the conven-
tional style of selling generated electric-
ity to implementing solar power genera-
tion for self consumption, the company
says, noting that this shift will present
more opportunities to deploy storage at
the residential level in the years ahead.
Solar Frontier also agrees that the grad-
ual shift to self-consumption will push
innovation: The key to winning in these
difficult conditions is to focus on the mar-
kets in which we can differentiate our-
selves by pursuing added-value solutions
based on CIS technology, says a spokes-
person for the Tokyo-based company.
But even at utility scale, the Showa
Shell Sekiyu subsidiary remains opti-
mistic that it can compete in the face of
declining installations, as it feels that
METIs revisions to the FIT policy are
aligned with the natural maturation of
the solar market.
Central to the revisions is the estab-
lishment of a mid-term price target, a
multi-year price setting, a top runner sys-
tem, and the introduction of an auction
system, a spokesperson says, adding that
large-scale projects accounted for 70% of
its PV module shipments in Japan in 2016.
From the perspective of improving
economic predictability and of pushing
to reduce manufacturers costs and pro-
moting innovation, we support the revi-
sion we will be able to adjust smoothly.
Industry trends
With the growth of Japans utility-scale
PV sector in decline, much of the inno-
vation in 2017 could play out in terms
of how projects are financed. In 2016,
for example, property developer Takara
Leben turned heads by giving investors
access to revenues from an aggregated
portfolio of its solar plants.
The JPY 8.7billion ($765million) offer-
ing Japans first listed infrastructure
fund sparked a flurry of excitement
when it was launched. Other compa-
nies quickly followed suit, with prop-
erty developer Ichigo Green Infrastruc-
ture Fund Investment listing a similarly
solar-focused fund in December.
Expect more public offerings such
as Ichigo and Takara Leben, says Nate
Franklin, Country Manager for Tokyo-
based developer Pacifico Energy, add-
ing that he expects more private funds
to start making acquisitions in Japans
nascent secondary market for opera-
tional PV assets. Costs of capital should
come down as the secondary market
develops.
Beyond financing, industry players
are tight lipped about the technological
developments that they have in store. At
utility scale, Franklin expects developers
to start installing more 1500 V inverters.
02/2017 |www.pv-magazine.com
 PART OF THE INTERSOLAR GLOBAL EXHIBITION SERIES

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On the module side, Kyocera says the growing focus on the
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watch in Japan in 2017. But the Tokyo-based company which
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try, with an additional 148.4MW now under construction
declined to comment on how the shift away from utility-scale
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Lots of power plants were installed from 2012 and it has
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VPPs will be one of the solutions for power generators to install
much more renewable power in Japan. S in conjunction with
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Exhibit now!

02/2017 |www.pv-magazine.com
 Markets&Trends

Photo: Grupo Ortiz

The Marcovia solar project is one of the large solar projects put online in Honduras in 2015, constructed by Spains
Grupo Ortiz.

Breaking new ground and this holds true for Central Amer-
ica. Unlike Europe where feed-in tar-
iffs served as the dominant policy model
for the largest wave of solar deployment,
Central Americas solar boom:Central American nations have emerged from Central American nations are currently
obscurity to play a leading role in the deployment and integration of large amounts of utilizing many different means to pro-
cure wind and solar, and developers are
renewable energy. But the Energy Transition in this region is just beginning.
trying new approaches that have not been
used widely elsewhere.
This includes auctions, feed-in tariffs,
Central America is a region composed And although Honduras is the first and merchant projects. Not all of these
of countries very unlike the Western nation known to pv magazine staff to mechanisms are working without flaws,
nations that have deployed large vol- get more than 10% of its electricity on an and some nations have utilized several
umes of renewable energy to date. Ger- annual basis from solar, it has not stopped different forms of procurement.
many, Japan, and other affluent, indus- installing renewable energy, and it is not Not only does the analogy of the
trialized nations are typically associated alone. Nicaragua already has one of the laboratory fit for policy approaches,
with renewables not developing nations highest penetrations of wind in its elec- but also for the issue of integration of
in the Global South. tricity mix globally, and a wave of new renewable energy. As certain Central
However, the nation with the highest renewable energy procurement is also American nations have achieved some
portion of solar generation in its elec- happening in El Salvador and Panama. of the highest penetrations of renew-
tricity mix last year was not Germany, The Energy Transition does not belong able energy deployed to date in the
or Japan, or even Italy. Instead, it was a to the wealthy nations. Not anymore. world, there is the question of how this
nation of 8million people with a per-cap- solar and wind is being integrated into
ita gross domestic product (GDP) of only A test for renewable energy national and regional grids, which are
$5,000 per capita and serious social prob- Latin America can be seen as a labora- largely geographically isolated and in
lems: Honduras. tory for deployment of renewable energy, poor shape.

22 02/2017 |www.pv-magazine.com

This could become even more of an
issue as more renewable energy is added.
For solar in particular, there is a lot of
procurement going on in 2017 and 2018,
which we will explore in the next section.
Auctions, the current trend
Auctions are currently one of the main
mechanisms for adding solar energy
worldwide and this is also the case in
Central America. In specific auctions for
renewables and in auctions open to dif-
ferent technologies, long-term contracts
have already been awarded for more than
300megawatts of solar PV in the last few
years in Guatemala, El Salvador, and
Panama. Around a third of this capacity
is already in operation.
It looks like auctions will continue to
be a source of opportunity for solar in the
region. This year a new electricity auction
for several hundred megawatts open to
different technologies is planned in Gua-
temala, where three solar parks totaling
85MW awarded in auctions are already
in operation.
The most recent auctions in which
solar projects were awarded took place
in El Salvador and Panama. In the lat-
ter nation, a milestone was achieved last
December when a project by Enel Green
Power was the first solar project to be
awarded a short-term electricity con-
tract in an auction, to supply power from
2017 to 2020.
Panama has already contracted elec-
tricity from solar parks in a long-term
supply auction. In fact, it is the only
country in the region in which an auc-
tion open only to solar has taken place.
The auction was conducted in 2014 and
five solar projects at an average price of
$87.25 per megawatt hour were awarded,
although contracts for only two projects
were signed.
The other country in which solar proj-
ects were awarded recently is El Salva-
dor. In a renewables auction last January
four solar projects totaling 120MW were
awarded, at an average price of $51.48 per
megawatt hour, the lowest price for solar
in the region to date. In another auction
in 2014 El Salvador awarded 94MW of
solar PV, and these projects are expected
to come online this year.
The feed-in tariff experience
Most of the solar capacity online cur-
rently in Central America was not con-
tracted through auctions but through a
02/2017 |www.pv-magazine.com
A rooftop PV project in El Salvador built by Martifer Solar. Central America also has active distributed
solar markets.
feed-in-tariff (FIT) program which Hon-
duras launched in 2013. A cap of 300MW
for projects to receive a bonus of $0.03 per
kilowatt hour was established, and to
obtain this higher tariff the projects had
to be in operation before August 1, 2015.
However, all has not gone as planned.
pvmagazine has learned that there are
problems with the payment of the bonus
tariff.
But where payment has been prob-
lematic, like other FITs the program was
extremely successful in terms of support-
ing the deployment of large amounts of
solar rapidly. Honduras is currently the
leader in solar capacity in Central Amer-
ica. In 2015, 388MW of solar PV were
put online, with a further 45MW in 2016,
so that the nation achieved a cumulative
capacity of 433MW of solar PV, accord-
ing to state utility ENEE.
Spot market & bilateral contracts
Most of the approximately 600MW of
solar parks currently installed in the
region were contracted either through
the Honduran FIT program or through
auctions. However, there are also projects
under other business models.
While Chile was the first Latin Amer-
ican country to host solar parks that sell
the electricity generated in the spot mar-
ket, Panama also hosts merchant proj-
ects, including the 10MW project Divisa
Solar which was completed last year by
Englands Solarcentury and Ecosolar.
Solarcentury stated last year that this
Markets&Trends
Photo: Martifer Solar
project will sell 100% of its output in the
spot market.
In the middle of last year Panama
reached a capacity of 77 MW of solar
parks, according to data from regulator
ASEP. In addition to this, ASEP has pro-
vided final licenses for several hundred
megawatts of solar projects.
Another mechanism for contract-
ing solar in the region is bilateral con-
tracts, including a 10MW project which
is being built by Grupo Ortiz in El Salva-
dor, and is expected to go online this year.
Law firm BLP says that it assisted El Sal-
vadors Grupo Borja in a 15 year power
purchase agreement with the utility AES
El Salvador for the supply from this proj-
ect, and according to a statement by BLP,
this is the first contract privately exe-
cuted in this country that involves this
type of power source without resorting
to a public bidding process.
Another project that has a bilateral
contract with a utility is the 101 MW
Providencia solar park, which is also
located in El Salvador. A portion of this
project will deliver electricity through
a contract obtained in an auction, but
another portion will be delivered within
the framework of a bilateral agreement
with a utility.
Distributed generation
Not only are solar parks blossoming in
Central America, but all of the nations in
this region have active distributed solar
markets. However, the form of regulation
23
 Markets&Trends
Photo: Gauss Energa
The Aura Solar2 project, built by Gauss Energa in Honduras.
differs in each, with some implementing
net metering regulations, some relying
on self-consumption programs, and oth-
ers lacking a specific framework.
Guatemala and Panama have both
deployed around 7MW under net meter-
ing regulations as of the most recent
available data from last year. After set-
ting up a pilot regulation a few years back,
Costa Rica also moved to a full net meter-
ing program last April.
And while the nation with the most
installed distributed solar is El Salvador,
it does not yet have a net metering pro-
gram and official data on the volume of
installations is incomplete. El Salvador
awarded 11MW of solar in an auction for
distributed projects in 2014, and most or
all of these have been completed. There is
also a program with a quota of 1MW for
residential solar.
Additionally, in Honduras and Nicara-
gua there has been growth in distributed
solar in the last years. Honduras hosts the
largest solar rooftop installation, a 3MW
solar self-consumption project built by
local company Smartsolar.
International support
Besides the Honduran FIT program
which can be considered direct support
there has been only indirect support
for solar in the region, like the removal
of import taxes for solar products or the
introduction of tax incentives for solar
projects in some countries.
More crucial for the growth of utility-
scale solar in the region has been strong
financial support for projects from multi-
lateral banks and development agencies.
The German Development Agency (GIZ)
has advised governments and provided
support for the deployment of renewable
energy through a specific program for
Central America, and the U.S. Agency
24
for International Development (USAID)
has provided various forms of support.
The French Development Agency
(AFD) has helped finance one of the
largest solar projects in the region, the
101MW Providencia solar project in El
Salvador. Additionally, Spain is support-
ing a 1.4 MW solar project at a university
in Honduras.
As for the multilateral banks, the Inter-
American Development Bank (IADB)
and the World Banks International
Finance Corporation (IFC) have pro-
vided finance for most of the utility-scale
solar projects built in the region, and
other development banks are also active.
Wind, solar, and petroleum
A calculation of projects in an advanced
state of development by pv magazine
staff suggests that 200300MW of solar more modest for the region as a whole.
could come online this year alone, which
matches solar electricity production esti-
mates by Ente Operador Regional, which
operates the regional grid.
These new PV projects will add to
already high levels of solar in Honduras,
where EENE estimates that solar met
10.2% of demand over the full year 2016.
But Honduras is not the only nation with
a high level of variable renewable energy,
as Nicaragua has been getting 2021% of a problem. In 2014 the International
of its electricity from wind since 2014,
placing it roughly tied with Spain as the
fourth-highest portion of wind for any
nation on earth.
To understand why these nations are
aggressively adding renewable energy, it is
important to look at the larger power sys-
tem. Central America has a tiny domes-
tic coal mining industry, no pipelines to
bring in gas from outside the region and
no nuclear power plants. As such, there
have traditionally been two main avail-
able sources of generation: hydroelectric
dams and plants that burn imported liq-
uid petroleum products.
Before its big build-out of wind over
the last decade, Nicaragua was the
nation with the highest portion of fos-
sil fuel generation in the region, which
represented 70% of its annual power as
recently as 2009. As is also the case in
many island nations, heavy dependence
upon imported fuel meant not only high
and unpredictable power prices but also
problems with supply and blackouts.
After Nicaragua reached a higher por-
tion of renewables through the deploy-
ment of biomass, geothermal and wind,
the nation with the next-highest portion
of fossil fuel generation was Honduras,
with thermal power representing nearly
60% of generation in 2013 and 2014. It was
during this time that the nation rolled
out its aggressive FIT, and the 388MW
of solar deployed in 2015 was equal to 17%
of the nations entire electricity capacity.
In 2016 EENE estimated that Hondu-
ras got 52% of its power from renewable
energy including hydroelectric dams,
thus mitigating imports of petroleum
products.
Integration
However, despite this massive build-out
in these two nations and similar prog-
ress in Costa Rica, which is nearly 100%
powered by renewable energy, the num-
bers for non-hydro renewables are much
In 2015, Central America only got 5.9%
of its power from wind and 1.2% from
solar PV, which are similar levels to the
United States.
However, with the current boom in
procurement the operator of the regional
grid is forecasting that solar penetration
in the region will reach 3.9% in 2017 and
5.0% in 2018.
In theory this should not be much
Energy Agency published a report which
estimates that most nations can inte-
grate up to 45% wind and solar with-
out significant overall additional costs as
long as system-wide changes are planned
carefully.
However, this is theory and every grid
has unique challenges. As an isthmus
with impenetrable jungles and marshes at
its narrow southern end, Central Amer-
ica is largely geographically isolated,
and national grids exhibit high levels of
losses.
02/2017 |www.pv-magazine.com

SIEPAC
As a project to both improve the reliabil-
ity of electricity supply to consumers and
integrate more electricity from renew-
ables, over the last decade Central Amer-
ica built a regional high-voltage grid, the
Electrical Interconnection System of
Central American Nations (SIEPAC).
In 2014 the final stretch of transmission
lines in the SIEPAC grid were installed
in Costa Rica, finalizing the physical
interconnection between six of the seven
nations in Central America.
And while electricity trading between
the nations has increased in recent
years and hit a new quarterly record of
500gigawatt hours in the third quarter of
2016, there is more to a grid than power
lines. For example, in the Western United
States, integration of higher levels of
wind and solar have necessitated changes
to operational practices including more
frequent trading of electricity, improved
forecasting, and other measures.
Honduras appears to have carefully
planned for the integration of the solar
which it contracted under its FIT. Develop-
ers built these solar projects close to main
transmission lines, and the nation was
Our expertise
is in many products.
And bright minds
are behind it.
02/2017 |www.pv-magazine.com
advised in 2015 on integration of renewable
energy by the German Development Agency
(GIZ). It is important to note that this advice
comes from a nation with experience in inte-
grating high levels of renewable energy.
SIEPAC operator Ente Operador noted
in a January report that there is still work
to do in the regional electricity market
(MER). As we have observed the energy
transactions between the nations in MER
have a relevant potential in the order of
4,000gigawatt hours annually, declared
the report. However it must be taken
into account that in reality these trans-
actions have not been used optimally,
which may be related to the application
of conservative operational policies or
even by particular strategic behaviors by
the agents participating in MER.
Forecasts, goals, and ambition
While the smaller volume of renewable
energy markets in Central America have
flown under the radar of some in the
industry, due to rapid deployment, inno-
vation in procurement, and integration
of record high levels of wind and solar,
Central America is already a leader in the
global Energy Transition.
Markets&Trends
This is only the beginning. Through
a massive build-out of solar, wind and
hydro, Honduras EENE estimates that
the nation will reach 95% renewable
energy in 2027 which is on a similar scale
to world renewable leader Denmarks
plans to reach 100% renewable heat and
electricity by 2035, and ahead of even the
most ambitious renewable energy man-
dates in U.S. states.
And while it missed its previous goal
of 94% renewable energy by 2017, Nica-
ragua has readjusted its plans and now
is attempting to reach 90% renewable
energy in 2020. Currently Nicaragua is
analyzing 10 new renewable energy proj-
ects featuring multiple technologies
including solar.
Whether or not these lofty goals are
met, Central America has already broken
new ground, and this region can serve as
an example for nations around the world.
Falling prices for solar PV ensure that
solar will play a central role in Central
Americas transition to renewable energy,
a transition which is already proving that
small developing nations can be world
leaders. S
 Blanca Daz Lpez & Christian Roselund
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25
 Markets&Trends

Photo: Eckhart K. Gouras/pv magazine

While ground-mounted plants have dominated installations in China, 2017 promises to be a big year for
distributed generation in China, as well as many other markets.

From Beijing to Shenzhen: and interviewing their President Jian

Xie is a fine opportunity, so I was wide

cutting-edge PV in China
awake when we entered the JA Solar office
in southwestern Beijing, despite not long
stepping off the long-haul flight from
Germany.
As Mr. Xie pointed out during the
China road trip: pv magazine Managing Director Eckhart K. Gouras returned to interview, JA Solar was not always based
China at the tail end of 2016 to take the nations PV pulse once more. Traveling from in Beijing, but began life in Hebei prov-
ince in 2007 and tracked its main cus-
Beijing to Shenzhen via a number of logistically significant locations along the way,
tomers as it expanded its wafer, cell and
this was a journey that affirmed Chinas ambition and vision to remain the worlds module business. As foreign markets like
largest and most dynamic solar player. Europe came to the fore, JA Solar moved
its headquarters from Hebei to Shanghai.
As a port city with a long history of for-
Last year was a big one for PV in China. Beijing eign trade, Shanghai was well suited for
In just one month (June) 11GW of solar For pvmagazine it meant that another an exporting powerhouse like JA Solar.
PV were installed across this huge mar- road trip to mainland China was a must The city also became the apex of a PV
ket, and the annual total for last year is as 2016 came to a close. We had ended supply chain centered around the Yang-
estimated at approximately 35 GW. If our December 2015 road trip in Beijing tze River delta. This provides another
accurate, this figure is more than twice at a time when the city was experienc- compelling reason to select Shanghai (or
the amount installed in 2015. That land- ing its first ever red alert pollution cri- any other large city in the Yangtze River
mark 11GW month came immediately sis. A similar ending was in store as we delta) as your companys headquarters.
before Chinas PV feed-in tariff (FIT) was embarked on this years China road trip The dynamics changed in 2013 as the
scaled back significantly on July1. on December11. Severe pollution in many imposition of trade tariffs, first in the U.S.
While the country was building PV of Chinas cities is a significant driver and then the European Union (EU), made
systems on the ground, on rooftops and pushing China to adopt clean energy. the export business less attractive to Chi-
in farms atop fish ponds (the agricultural The situation has become so severe in cit- nese producers. The Chinese government
sector is one of the most promising seg- ies like Beijing that we can expect Chi- quickly changed gears and introduced an
ments in China), the countrys PV man- nas central government to continue its attractive FIT to stimulate PV demand
ufacturers were busy serving a boom- bold embrace of clean energy regardless at home, which up until then had been
ing domestic market and a wide range of what other major polluters around the miniscule. However, back in 2013 few
of established and emerging markets world do or dont do about carbon emis- would have imagined a single month in
overseas. sions and other pollutants. 2016 bringing 11GW of PV installations.
Countries like India were embrac- Fortunately, Beijing was not on red The management of JA Solar may well
ing PV and Chinas PV manufacturers alert mode when we began our road trip have been one of these prescient observ-
seemed destined to play a critical role at the global headquarters of JA Solar, one ers, because in 2014 they decided to move
in making PV a significant part of the of the worlds leading module manufac- the companys headquarters back north
energy mix in such emerging markets. turers. Visiting JA Solars headquarters to the capital city Beijing.

26 02/2017 |www.pv-magazine.com

While they left the manufacturing
hub in the Yangtze River delta (with a
production capacity of 5.5 GW at the
end of 2016), the place to be to capture
the domestic downstream business was
(and is) Beijing. Unlike other markets,
state-owned utilities are the key actors
when it comes to developing and build-
ing large-scale PV power plants in China,
the leading PV application type in this
huge country. These state-owned utilities
are generally headquartered in Beijing,
where they can tap favorable financing
from Chinas lending institutions, which,
like these utilities, are state-owned enter-
prises (SOEs) or otherwise connected to
Chinas central government.
By being close to these key players JA
Solar is set to ship 2.5GW, or about half
of its 2016 shipments, to Chinese custom-
ers. With the Chinese FIT cut looming
last June, JA Solar supplied a whopping
64% of its second quarter 2016 shipments
to the domestic market. In Q3 this share
dropped to just 32% with foreign mar-
kets again serving as the major buyers.
JA Solar also scored well in Chinas Top
Runner program, which aims to sup-
port PV manufacturers with high-qual-
ity PV products. In JA Solars case, these
are high-efficiency modules like its PER-
CIUM line of monocrystalline modules
launched in 2013.
In 2016, the first year of the Top Run-
ner program, JA Solar seized 45% of the
capacities awarded. In the next round
(with 5.5GW at stake), the company will
likely feature prominently again. Xie
points out, however, that JA Solar will not
act as a power plant developer and owner
during the first round, but instead serve
only as a panel supplier to those leading
Beijing-based development players. The
latter can get even better financing terms
than JA Solar, and Xie is keen to keep his
companys strategic focus on manufac-
turing and not project development and
financing.
This kind of discipline is required
because, in Xies words, its quite a chal-
lenge to stay cost-competitive in a mar-
ket where module average selling prices
(ASPs) dropped some 30% in 2016 alone.
Further reductions in both blended mod-
ule ASPs and blended module costs are
in store for 2017 and Xie anticipates that
the low thirties (in U.S. cents per kilowatt
hour) are doable on the cost side by the
end of this year. On the blended ASP
side his prediction is in the mid-thirties
02/2017 |www.pv-magazine.com
Quick Contact CEO Tank Duan spoke of the companys one stop service to PV customers.
uring the second half of this year. How
d Quick Contact (QC) is led by a dynamic
can JA Solar get there? On the poly side
Xie sees the application of diamond saw-
ing to polycrystalline wafers as shaving
up to $0.02/kWh off the cost of the poly
module. On the mono side, which is JA
Solars strong suit after it reached a 7GW
milestone of mono modules shipped last
summer, the ramp-up of PERC technol-
ogy in the manufacturers cell production
should boost output by 10 watts by the
end of this year.
Another challenge for Xie and the JA
Solar team is the further development
of production hubs outside of China.
Its wafer, cell and module fabs in Viet-
nam and Malaysia still need to be per-
fected and key challenges are handling
the PV supply chain for such fabs and
dealing with local laws and regulations
(for example relating to the factory work-
force) that can be different from those in
China. To tackle these challenges will
take time, so Xie does not expect further
fabs to be opened in 2017.
Suzhou
In Suzhou pvmagazine met two leading
PV material suppliers: Quick Contact a
leader in connectors, cables and junction-
boxes for modules; and Cybrid Chinas
leading manufacturer of PV backsheets.
These manufacturers work closely with
Chinas top-tier module manufacturers
and are having increasing success with
foreign customers.
Like their top-tier module counter-
parts, they have ramped up their produc-
tion to a significant scale, thereby push-
ing down raw materials and production
costs to further drive down panel costs,
and with it, solar LCOE.
Markets&Trends
Photos: pv magazine
Founder and CEO, Tank Duan, a veteran
of the solar PV industry having previ-
ously worked at BP Solar. His company
has become the leading manufacturer
of PV connectors in China and QC also
supplies junction boxes, cables, and com-
biner boxes. Constant innovation is writ-
ten large at QC and the company boasts
one patent for every two employees. Of
the roughly 500staff, more than 70 are
engineers. They have developed their
own tools for their factories in Suzhou
and Huaian and their junction box pro-
duction is fully automated.
Duan highlights three areas of the
companys strategy: first, to provide a
one stop service for PV connecting sys-
tems to their customers in China and
overseas. Such customers cover various
segments from module manufacturers to
EPCs looking for dependable connecting
solutions. Second, to offer smart solu-
tions to QCs customers. Their combiner
box is a good example: no longer a dumb
box with a simple on/off functionality,
the QC combiner box can monitor every
string in the PV array. Finally, Duan
mentions the Toyota model, which
describes his intention to follow module
manufacturers to foreign markets to pro-
vide a capable and local supply chain to
panel producers like JA Solar and their
fabs in Southeast Asia. In QCs case the
destination is likely to be Thailand, where
another top-tier company (Trina Solar)
has set up a cell and module factory. To
finance this international expansion an
IPO is planned in China later this year.
Compatibility is a key driver behind
Duans strategy to provide this service.
At its core, this means compatibility
27
 Markets&Trends
Photos: pv magazine
Hangzhou First PV Material CTO Danial Zhou with Eckhart K. Gouras, pvmagazine Managing Director.
between the modules junction box, the
connectors and the PV cabling used.
QCs main international rival MultiCon-
tact, part of the Swiss Stubli Group, has
also highlighted compatibility between
PV components as a key quality issue in
building robust PV power plants. Com-
patibility between different manufactur-
ers of connector components is a thorny
issue and the safest way is to use a single
vendor to supply all components of the
connecting system. In China, QC spear-
headed the development of a national
standard for PV connectors and it can
also serve as a third-party testing service
for module manufacturers to verify com-
pliance with relevant standards.
Like its neighbor in Suzhou, Cybrid is
planning to establish a foreign produc-
tion base in the foreseeable future, fol-
lowing the Toyota model to use Duans
apt analogy. Cybrids cofounder and CEO
Mark Wu is targeting 2018 for this move,
and likely countries include Thailand and
Vietnam. Like QC, Cybrid is an innova-
tor, with about 10% of its staff in R&D.
The fact that Wu employs American and
Japanese staff underscores the interna-
tional mind-set of the Cybrid team. It
also reflects its origin as a Sino-Japanese
cooperation, since Wu teamed up with
Japanese scientist Dr. Keiji Uno to launch
Cybrid in China at the end of 2008. About
four years after their VC-funded launch,
Cybrid introduced a novel backsheet into
the market. Their KPf backsheet incor-
porates a fluoropolymer skin to provide a
28
lower cost alternative to traditional TPT
or KPK backsheets. Wu mentions a cost
saving of 40%, a significant cost saving
for module manufacturers contending
with a 30% price drop in 2016.
Cybrids KPf backsheet also offers a
strong core PET layer with a thickness
of 260microns, which is attached to the
fluoropolymer skin directly without the
insertion of an adhesive as required by
traditional backsheets. This boosts ther-
mal conductivity while further reducing
overall cost. Another important property
of the PV backsheet is reflectivity, with
the standard KPf product providing a
value of 80%. To further boost module
efficiency, Cybrid can offer customers a
KPf+ backsheet with a reflection rate of
90%. Together with the turnkey produc-
tion specialist Meyer Burger, Cybrid is
developing a KPf++ product, which will
offer an even higher rate of 99%.
Hangzhou
In Hangzhou pv magazine met with
Hangzhou First PV Material, the lead-
ing supplier of EVA films to the global
PV industry. The companys VP and CTO
Danial Zhou is working on increasing
module efficiency and with it lowering
the cost per watt of the module by boost-
ing the reflection rate. But for Zhou, it is
the encapsulant and not the backsheet
that offers the most potential. Hangzhou
First PV Materials EVA is closer to the
cell layer and glass of the module and
this proximity is helpful in getting more
sunlight onto the cells. This is especially
the case with white EVA films, where
module efficiency can be boosted by one
to two watts, representing an efficiency
gain of 0.3% to 0.5%. This contribution
is even higher with high-efficiency mod-
ules like JA Solars PERCIUM line of pan-
els described earlier. JinkoSolar is one of
Hangzhou First PVMs key customers
and recognized Hangzhou First PVMs
contribution in making its modules both
PID-resistant and without unattractive
snail trails. As Zhou points out: Sev-
eral years ago EVA played an encapsu-
lant role only, but now the anti-PID capa-
bility should mainly be in the EVA, not
in the cells. Hangzhou First PVMs anti-
PID EVA creates a barrier between the
glass and the cell surface, thereby keep-
ing sodium ions from migrating between
these layers to destroy the p-n junction
and create the PID outcome.
The snail trail phenomenon is more
complex than the PID mechanism.
According to Zhou, various factors are
involved in generating an ugly snail trail,
including the backsheet, EVA, cell layer,
and even the module installation pro-
cess. Even so, Hangzhou First PVM was
able to develop an EVA to address this
problem, which has become a concern in
some important emerging PV markets
like India.
Unlike its module-maker custom-
ers, Hangzhou First PVM did not have
to slash prices in 2016 to stay competi-
tive. Across its different products, which
also include backsheets and PO films for
a wide range of applications, prices were
lowered by 10% last year. The companys
inputs are mainly oil-based raw materi-
als, reaping benefits from the fall in oil
prices. Should oil prices increase this
year, Hangzhou First PVM will probably
stick to its pricing discipline to avoid a
steep reduction in profitability.
Hefei
A pvmagazine China road trip would
not be complete without taking a close
look at that key PV system component,
the inverter. One Chinese inverter sup-
plier showing promise is Ginlong (Solis)
Technologies. Based in Ningbo on Chi-
nas eastern seaboard, Ginlong is squarely
positioned in the residential and com-
mercial & industrial (C&I) markets,
although it also offers inverters for util-
ity-scale projects. Its focus has always
been on the string inverter, starting from
02/2017 |www.pv-magazine.com

the very small to larger 50, 60, and 70kW
models. These last two models are also
Ginlongs latest products and round out
a product portfolio well suited for the
global shift to more distributed genera-
tion. A hybrid storage + inverter prod-
uct is another new addition in the compa-
nys offering, and the first two countries
to be targeted for this solution are Aus-
tralia and the U.K. With low PV FITs but
high electricity rates, self-consumption
tied to storage seems especially promis-
ing in both of these markets.
Ginlongs Founder and CEO Yiming
Wang also sees self-consumption pick-
ing up in China this year. In this case
the driver is actually the countrys FIT,
which will only decline minimally for
solar power consumed where it is pro-
duced. While such power will receive
CNY 0.40/kWh ($0.06/kWh, down
slightly from CNY0.42), power sent to
the grid will get almost 20% less than
before a more drastic haircut.
Overseas, Wang identifies the U.S.
and India as the top markets, followed
by Europe and Australia. Having passed
reliability testing in the past two years
in DNV GLs PVEL test lab in the U.S.,
and also received a favorable bankabil-
ity report by DNV GL in 2015, Ginlong is
in a very select group of Chinese inverter
manufacturers to be considered bank-
able in the U.S. Wang mentioned Bank
of America and JP Morgan as blue chip
banks that categorize Ginlong as bank-
able for U.S. projects. Reliability is a
core value at Ginlong and this philosophy
fits well with banks and investors keen to
factor out risks in their solar assets.
Shenzhen
One Chinese inverter manufacturer who
knows all about keeping systems up and
running 24/7 is Huawei. Its headquarters
and production hub in southern Shen-
zhen were the last stop in our road trip,
and Shenzhen and the Pearl River delta
that surrounds it have long had a reputa-
tion for producing some of the best elec-
tronics products mainland China has to
offer. Huawei has emerged as the leader
in this industry, quickly becoming a
global powerhouse in telecommunica-
tions and IT hardware. As someone who
has worked in telecommunications, I can
well appreciate the 99.999% availability
Huawei offers for its ICT equipment.
Huawei has been a relatively late
entrant into the PV industry, but this
02/2017 |www.pv-magazine.com
Ginlongs CEO Yiming Wang expects the boom in distributed generation in 2017 to boost his companys
inverter shipments from 1GW in 2016 to 1.5GW this year.
has not stopped it from gaining market
share. In fact, in 2015 it already became
the global leader in inverter shipments
with the bulk going to projects in China.
When we discussed Huaweis plans and
priorities with Mark Xue, Marketing
Director, Smart PV Solution department,
and Steven Zhou, GM, Smart PV Busi-
ness Residential Solution, a more bal-
anced portfolio between domestic and
foreign shipments is the target for 2016
and later years. In 2016 Huawei expects to
have shipped 20GW globally. Europe is
already one of Huaweis top foreign mar-
kets with 800MW shipped in 2015 and
more expected in 2016. Japan is another
country in Huaweis initial target list,
with 350-400MW shipped in 2015 and an
impressive 1GW shipped last year. While
these two regions were earmarked for the
initial rollout of Huaweis string invert-
ers, we can expect significant ramp-ups
in North America, India, Asia Pacific, the
Middle East, and Africa in 2017.
Certainly Huaweis established reputa-
tion as a global supplier of ICT products
and solutions provided fertile ground
to rapidly gain market share in the PV
inverter space. In addition, its so-called
shared global platform for after-sales
support for its ICT range of products
allowed it to simply plug PV into this plat-
form to provide local support in a wide
range of countries. However, specialized
engineers versed in PV still need to be
deployed, but the platform is there and
can readily absorb PV as another product
Markets&Trends
Photos: pv magazine
area. The overriding strategic advantage
Huawei brings to the table is its exper-
tise in serving an increasingly all con-
nected society as Xue refers to the envi-
ronment that is emerging. Applying this
ICT expertise to PV gives rise to solutions
such as Huaweis Fusion Solar Smart PV
Solution, now in its third generation.
With it PV power plants are monitored
down to the string level, where actual I-V
curves are continually compared to opti-
mal I-V curves for the particular string.
If these values deviate, Huawei has devel-
oped algorithms to diagnose the likely
malfunction.
Such smart solutions are the future,
and Chinas massive PV deployment is
providing a great test bed for develop-
ing these technologies and solutions. As
Huawei and other Chinese PV suppli-
ers bring this expertise to foreign mar-
kets, it will help to lower capex and opex
costs associated with PV. With this opti-
mistic outlook for 2017 and beyond I
headed back to Beijing, which was by now
engulfed in another red pollution alert,
causing my Air China flight to divert to
Hohhot, the capital of Inner Mongolia,
a vast autonomous region inside China.
The next morning our Air China crew
was able to safely land our plane in Bei-
jing, with just enough time for me to
catch my flight back to Europe. I couldnt
help but ponder that smart PV will soon
conquer Chinas pollution problems and
replace coal as the dominant form of
power generation. S Eckhart K. Gouras
29
 Markets&Trends

Photo: Arctech Solar

A 4 MW tracker installation in Vellakoil, Tamil Nadu. The state currently has 278 MW of solar projects in
construction, on top of 1.36 GW installed capacity.

2017: A crucial year

for Indian solar
Indian installations: With 9 GW in installations lined up for 2017, it can no longer
be denied that India is playing in the big leagues. Raj Prabhu, CEO and Founder of
industry analysts Mercom Capital provides some detail on whats on the horizon for
one of the worlds fastest-growing markets.

Solar installations in India are expected
to reach 4 GW in 2016, almost dou-
ble those of 2015. We have reduced our
installation forecast from the previous
quarter as several project completion
dates have been moved to next year. We
are forecasting demand to reach almost
9GW in 2017 which would put the Indian
solar sector among the big leagues along
with China, the United States, and Japan.
However, there are significant headwinds
in terms of transmission and evacuation
issues that could threaten the pace of
growth. The countrys solar development
pipeline is now at approximately 14GW,
with about 6GW of projects tendered and
pending auction.
Several major concerns that exist in
the sector right now are around trans-
mission, evacuation, curtailment, timely
payments, and the goods and services tax
(GST).
The project development landscape has
changed significantly over the last quar-
ter, largely due to oversupply and the
price decline of modules coming out of
China. The average selling prices (ASPs)
of Chinese modules in India have wit-
nessed a decline of approximately 10%
since August and the lowest module price
quoted has declined by about 14% in that
same period. This decline in prices has
provided a much needed boost to devel-
opers that won projects at low bids and
were struggling to make the economics
work.

30 02/2017 |www.pv-magazine.com

Our recent survey of solar parks has
revealed that the infrastructure in many
of these parks is incomplete and not ready
for prime time. Developers have raised
concerns about how expensive the park
fees are, compared to the quality of infra-
structure being provided. In some cases
developers are incurring expenses to
clean the land, build roads, and are still
waiting for power to be evacuated after
commissioning. All of this can have
a negative effect on project costs and
profitability.
The government of India announced
demonetization on November 8, 2016
which has affected every citizen and
industry across the country. Essentially,
the government ceased the use of 500 and
1,000rupee notes as legal tender. While
the effect of demonetization has been
varied and implementation chaotic, our
analysis indicates a possible positive over-
all outcome for the power sector. Distri-
bution companies (DISCOMs) are recov-
ering unpaid power bills, as consumers
have been allowed to pay using the dis-
continued notes. Unpaid power bills are a
huge problem for DISCOMs in India and
a key reason behind their financial prob-
lems. There is also an expectation that
banks, now flush with funds, could ease
lending to the power sector and poten-
tially reduce interest rates.
Delayed payments to developers are
still an issue in states like Tamil Nadu
and Rajasthan. But Maharashtra and
Madhya Pradesh are now behind on
their payments, which raises concerns
that other states will follow. Payments
to wind developers are delayed by six to
seven months in some states, and banks
are worried that solar may be next.
Transmission and evacuation issues
are a big concern particularly for solar
parks. Developers are losing revenue due
to delays. The industry is betting on the
completion of the Green Energy Corri-
dor to solve some of these issues, but the
project is moving very slowly.
While there is speculation that imple-
mentation of the GST will be delayed,
many developers mentioned that uncer-
tainty around the GST and how it will
affect the sector is giving them pause.
So far, there are 1.57 GW of util-
ity-scale solar projects commissioned
under different phases of JNNSM: the
Migration program (PV 48MW and
CSP 2.5MW), Phase I Batch1 (PV
140MW and CSP 200MW), Phase I
02/2017 |www.pv-magazine.com
Markets&Trends
Batch2 (PV 330MW), Phase II Batch1 JNNSM phase II batch3 (SECI)
(PV 680 MW), and other programs Solar Energy Corporation of India
(167.5MW). (SECI) has called for tenders amount-
The MNRE has announced tenders ing to 2.51GW under JNNSM Phase II
for 3GW of PV projects under this pro- Batch3 State Specific VGF [viability
gram, implemented by NTPC through gap funding] Program. Auction results
open competitive bidding. for 2.3MW projects to be developed in
The auction results for 2,750 MW Andhra Pradesh, Maharashtra, Karna-
(1,000MW in Andhra Pradesh, 650MW taka, Chhattisgarh, and Uttar Pradesh
in Rajasthan, 600 MW in Karnataka, have been announced. According to our
400MW in Telangana, and 100MW in sources, PPAs have been signed for all
Uttar Pradesh) have been announced. Of 2.3GW and we expect around 500MW
the 2,750MW only 400MW is under the of projects to be commissioned by March
DCR category. PPAs have been signed for 2017. A new tender is expected under this
2,650MW as of November 2016 and these batch for 500MW of solar in the state
projects are expected to be commissioned of Uttar Pradesh, but not in a solar park.
in 2017. A 250 MW project in Andhra
Pradesh was retendered in October 2016 JNNSM phase II batch4 (SECI)
and is pending auction announcements. Under this program 5GW of grid-con-
MNRE confirmed that, since Tranche- nected solar PV projects on a build, own
I is complete, it will soon launch Tranche- and operate basis with VGF benefits are
II, which has been delayed due to the to be developed. Tenders for 2.9GW proj-
other options being considered by MNRE ects under this program have been issued
in place of the bundling program. (Gujarat 400MW, Odisha 300MW,
Graphics: pv magazine/Harald Schtt
All India cumulative utility-scale solar installations by policy type (MW)
Tamil Nadu Solar Policy
Source: Mercom Capital Group (Dec 2016)
Gujarat Solar Policy
REC Mechanism
Telangana Solar Policy
NSM-Phase II Batch 1
Andhra Pradesh Solar Policy
Punjab Solar Policy
Karnataka Solar Policy
NTPC New Solar Projects
Madhya Pradesh Solar Policy
NSM-Phase I Batch 2
Others
Maharashtra Solar Policy
NSM-Phase I Batch 1 (Thermal)
Uttar Pradesh Solar Policy
NSM-Phase I Batch 1
Rajasthan Solar Policy
NSM-RPSSGP
Bihar Solar Policy
Chhattisgarh Solar Policy
Uttarakhand Solar Policy
NSM-Migration Program
Odisha Solar Policy
NSM-Airport Solar Projects
MNRE-Demonstration Program
NSM-Canal Top/Bank Projects
Haryana Solar Policy
NSM-Solar Port Projects
West Bengal Solar Policy
MNRE-Demo. Program (Thermal)
Others (Thermal)
0 200 400 600 800 1,000 1,200 1,400
31
 Markets&Trends

India solar installations (MW) by location (May 2016)

Tamil Nadu
Rajasthan
Gujarat
Andhra Pradesh
Telangana
Madhya Pradesh
Punjab
Karnataka
Maharashtra
Uttar Pradesh
Bihar
Chhattisgarh Cumulative installed
Odisha
solar capacity now stands
Uttarakhand
Haryana
at 9 GW
New Delhi
West Bengal
Jharkhand
Kerala
Daman & Diu <20 MW
Chandigarh
20100 MW
Andaman & Nicobar

Source: Mercom Capital Group (Dec 2016)

Tripura 100500 MW
Jammu & Kashmir
5001,000 MW
Goa
Lakshadweep >1,000 MW
Arunachal
Puducherry
0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600

Maharashtra 500MW, Andhra Pradesh
750MW, Karnataka 200MW, Rajast-
han 750MW). This includes tenders for
300MW with battery energy storage sys-
tems in Karnataka and Andhra Pradesh.
Of the 2,900MW only 225MW is under
the DCR category. Auction results for
970 MW have been announced as of
September 2016 and 225 MW of PPAs
are signed in Gujarat. These projects are
expected to be commissioned by March
of 2017. According to our sources, addi-
tional capacities are expected to be ten-
dered under this batch.
SECI rooftop solar project bids
SECI released a country-wide list of low-
est prices from the 500MW solar rooftop
auction. The list reveals some of the low-
est tariffs ever quoted for rooftop projects
including subsidies. According to a gov-
ernment policy document, based on the
lowest project cost quoted for each state
by bidders, SECI will provide the general
category states either a subsidy of 30% of
the quoted project cost or INR22.5/W
($0.3377), whichever is lower. Special
category states and islands will receive a
subsidy of 70% of the quoted project cost
or INR52.5/W ($0.7881).
After the initial tender, an amendment
to the capacities allocated under various
categories had been made, with the total
capacity of 500 MW divided into Part
A-200 MW (capex), Part B-200 MW
(RESCO) and Part C-100MW (capex).
Rooftop solar tender
The Solar Energy Corporation of India
(SECI) hastendered1GW of grid-con-
nected rooftop solar in India for instal-
lation on government buildings and
offices throughout the country. Of this,
300MW will be developed under a capex
(purchase) model and 700 MW under
a renewable energy service company
(RESCO) lease model. This is a global
tender; any company or developer can
participate regardless of location. Bid-
ding closed on January 27, 2017.
Developers of capex projects can bid for
a minimum of 500kW and a maximum
of 50MW; developers of RESCO projects
can bid for a minimum of 2MW and a
maximum of 100MW. Developers can
bid for a maximum capacity of 150MW
under capex and RESCO together. Suc-
cessful bidders can also secure loans from
the Indian Renewable Energy Develop-
ment Agency. This is the second large-
scale rooftop solar auction by SECI.The
nodal agency tendered500MW in April
2016.
State by state updates
Uttar Pradesh: Currently there are about
19fivemegawatt solar projects in opera-
tion under the Uttar Pradesh state policy,
and about 21fivemegawatt projects cur-
rently under construction are expected to
be commissioned in 2017. Uttar Pradesh
also submitted a proposal to the MNRE
to replace 60MW of energy from conven-
tional power projects with solar.
Andhra Pradesh: There are about
590MW of solar projects in operation
under the Andhra Pradesh state policy,
and about 93MW of projects are under
construction. Of these 82MW of proj-
ects are expected to be commissioned by
March 2017.

32 02/2017 |www.pv-magazine.com

The renewable energy agency of
Andhra Pradesh (NREDCAP) has
received expressions of interest for a
500 MW wind and solar hybrid park
in Ananthapuram District, which can
be expanded to 1GW over three to five
years. Since there were issues pertain-
ing to eligibility criteria, this expression
of interest has been withdrawn and is
currently being amended. The state has
also submitted a proposal to the MNRE
to replace 2MW of energy from conven-
tional power projects with solar.
The Andhra Pradesh government has
committed to 10GW of solar and 8GW
of wind by 2022. Of this, there are plans
for 3GW of hybrid wind and solar proj-
ects. The state is also looking at incorpo-
rating energy storage.
The Andhra Pradesh Electricity Reg-
ulatory Commission (APERC) also pro-
posed a new aggressive renewable pur-
chase obligation (RPO) target of 25.25%
for the FY 2021-22, which includes a solar
RPO of 12.75%.
Punjab: There are about 558MW of
solar projects in operation under the
Punjab State Policy and about 433MW of
projects under construction are expected
to be commissioned in 2017.
Madhya Pradesh: There are 340MW
of solar projects installed under Madhya
Pradeshs state policy and 292MW under
construction are expected to be commis-
sioned by early 2017.
The Madhya Pradesh state government
released the Madhya Pradesh Renewable
Energy Policy 2016 with focus on roof-
top solar PV systems. The state govern-
ment will provide a 30% subsidy to users
installing on their own rooftops or land.
Government buildings and government-
owned lands are expected to fetch devel-
opers a subsidy of 45% to 50%.
Utility-Scale solar projects by status (MW)
14,030
9,018
Under
In-Operation development
02/2017 |www.pv-magazine.com
Markets&Trends
India utility-scale solar project pipeline (MW)
NSM Phase II Batch 2 (NTPC)
NSM Phase II Batch 4 (SECI)
NSM Phase II Batch 3 (SECI)
NTPC (Self-owned) New Projects
Telangana Solar Policy
Karnataka Solar Policy
NSM Phase II Batch 5 (SECI-CPSU)
Madhya Pradesh Solar Policy
Jharkhand Solar Policy
Punjab Solar Polic
Tamil Nadu Solar Policy
NSM Phase I Batch 1 (NTPC)-CSP
Uttar Pradesh Solar Policy
Haryana Solar Policy
Uttarakhand Solar Policy
Others
Andhra Pradesh Solar Policy
NSM Canal Top/Canal Banks Scheme
REC Mechanism
Kerala Solar Policy
West Bengal Solar Policy
NSM Solar Port Projects
Bihar Solar Policy
Odisha Solar Policy Projects tendered, pending auctions (6 GW)
Rajasthan Solar Policy Projects under development (14 GW)
NSM/Defense Scheme Source: Mercom Capital Group (Dec 2016)
NSM Phase II Batch 6 (SECI)
0 500 1,000 1,500 2,000 2,500 3,000
Haryana: Haryana Power Purchase were sought for up to 20MW on a taluk-
Centre, on behalf of UHBVN and by-taluk (county) basis in 60 taluks.
Dakshin Haryana Bijli Vitran Nigam Also 100MW of capacity was reserved
(DHBVN), invited tenders for 150MW of for solar cell and module manufactur-
solar projects. PPAs have been signed for ers located in Karnataka. Of the total
152MW, which are expected to be com- 1.17 GW (1,070 MW General Cate-
missioned in 2017. gory and 100MW Module Manufac-
The Haryana Electricity Regulatory turer Category) PPAs have been signed
Commission (HERC) raised the incen- for 1.01 GW by bidders quoting prices
tive offered by the state government up to INR 5.50/kWh ($0.08) under the
for rooftop solar. Residential homes general category (a 20 MW SunEdi-
with rooftop solar installed will get an son project was cancelled). All the PPAs
incentive of INR 1/kWh ($0.014) this under the module manufacturer cate-
is four times the previous incentive of gory with prices quoted up to INR6.10
INR 0.25/kWh ($0.0037). ($0.089) have been signed and these proj-
Karnataka: There are 492MW of solar ects are expected to be commissioned in
projects installed under the Karnataka the third quarter of 2017. Currently, DIS-
state policy and 1.781 GW under con- COMs have been directed by the state
struction. There have been no changes government to sign supplemental PPAs
Source: Mercom Capital Group (Dec 2016)
to Batch I, II and III since our previous by November15, 2016 for these projects
6,143 update. to correct clerical errors.
Under Batch IV, KREDL signed PPAs Telangana: There are 809MW of solar
for 500 MW in early 2015, of which projects installed under the Telangana
300 MW has been commissioned. The state policy and 2GW under construc-
remaining projects are expected to be tion. Telangana has submitted a proposal
commissioned by early 2017. to the MNRE to replace 1GW of energy
Tendered Under Batch V, tenders were issued from conventional power projects with
for 1.2GW. Under this program, tenders solar.
33
 Markets&Trends

Solar installations in India mission deadline for these projects was

on November18, 2016. TANGEDCO has
10,000 Annual installations (MW) Cumulative installations (MW) 20,000 received a tepid response to its request
for selection (RfS) toprocure 500MWof
9,000 18,000 solar through a reverse auction. Bids of
only 117MW have come in so far, which is
8,000 16,000 less than 25% of the original procurement
goal. This is not surprising considering
7,000 14,000 Tamil Nadus reputation when it comes to
curtailment and payment issues.
6,000 12,000 In another development, the NGO
Energy Watchdog has filed a peti-
5,000 10,000 tion against Tamil Nadu Electric-
9,020 ity Regulatory Commission (TNERC)
4,000 Annual solar installations 8,000 and TANGEDCO to extend the con-
Cumulative solar installations trol period for the solar power tariff of
3,000 Source: Mercom Capital Group (Dec 2016) 6,000 INR7.01/kWh ($0.104) by one year.
4,150 The court filing says that the TNERC
2,000 4,000 extended the control period of its solar
power tariff ignoring the revised, down-
1,000 986 2,000 ward benchmark capital cost of INR5.68/
2,133
1,004 kWh ($0.0849) for solar power as issued
6 12 172 883
0 0 by the Central Electricity Regulatory
2009 2010 2011 2012 2013 2014 2015f 2016f 2017f Commission (CERC).
Uttarakhand: There are 60 MW of
solar projects installed under the Utta-
Bihar: Bihar State Electricity Board the Tamil Nadu state policy and 278MW rakhand state policy and 151MW under
(BSEB) signed PPAs in February 2015 under construction. construction. These projects had a strict
to set up 100MW of solar projects. Of The Tamil Nadu Generation and Dis- deadline to be commissioned by Octo-
this, 80MW are commissioned and the tribution Corporation (TANGEDCO) ber 2016 but due to delays in signing PPAs
remaining projects are expected to be has also issued a request for selec- and evacuation delays by the DISCOMs,
commissioned by the end of 2016. tion (RfS) to procure 500MW of solar the commissioning dates were extended
Tamil Nadu: There are currently power from developers in Tamil Nadu to the first quarter of 2017. PPAs were
1.36GW of solar projects installed under through a reverse auction. The bid sub- finally signed in November of 2016.

Top 10 solar states in India

Tamil Nadu Rajasthan Gujarat Andhra Pradesh Telangana

1,577 485 1,324 1,205 1,100 300 1,009 1,494 1,006 2,418

Madhya Pradesh Punjab Karnataka Maharashtra Uttar Pradesh

Source: Mercom Capital Group (Dec 2016)

861 722 569 452 510 3,375 383 957 241 696

9,018 MW cumulative solar capacity 3,732 MW solar installations Total instalation( MW) Under development (MW)

34 02/2017 |www.pv-magazine.com
 Markets&Trends

Advertisement
Chandigarh: The Chandigarh administration has targeted
rooftop installations of 50MW by 2022. To achieve this target,
the Chandigarh administration is providing incentives includ-
ing a central subsidy of 30% and an incentive for Residents Wel-
fare Associations (RWAs) in the Union Territory.
Jharkhand: Jharkhand Renewable Energy Development
Agency (JREDA) issued a tender to develop 1,200MW of solar
projects in December 2015. Letters of intent have been issued
for projects totaling 1,101MW, but PPAs are yet to be signed
between developers and DISCOMs. A Jharkhand Renewable
Energy Development Agency (JREDA) official confirmed that
the delay is due to a disagreement between the DISCOM and
the developers relating to the quoted tariff. The recent low bids
in several states has led the DISCOM to demand a lower quote
from the solar project developers.
Tenders are issued for rooftop solar installations of about
5MW for government buildings. The JREDA will fund the
installation through funds received from the Government of
India and the Government of Jharkhand. The nodal agency will
also hold a pre-bid meeting with developers to discuss issues
and provide clarifications on November17, 2016.
JREDA also issued tenders to develop solar for the rural elec-
trification of 290villages with a six month completion time line. RENEWABLE ENERGY
Kerala: There are about 27MW of solar projects in opera-
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About the author
Raj Prabhu is CEO and cofounder of
Mercom Capital Group, llc, a clean
energy communications and consult-
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icy, due diligence and joint ventures.
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http://store.mercom.mercomcapital. Staubli is a trademark of Stubli International AG,
registered in Switzerland and other countries.
com/page/. Stubli 2016 | Photocredits: Stubli

02/2017 |www.pv-magazine.com 35
 Markets&Trends

Photo: ACWA Power

The 200MW Mohammed bin Rashid Al Maktoum Solar Park is nearing completion in Dubai.

Building big in MENA

New energy plans: The United Arab Emirates and Saudi Arabia both announced in
January new energy plans for their countries, targeting a large share of solar PV in
their energy mix. pvmagazine presents the latest update from both countries and
provides a first estimate of what is possible and how soon.

The United Arab Emirates (UAE)
and Saudi Arabia made headlines at
this years Abu Dhabi Sustainability
Week (ADSW), which ran from Janu-
ary12to21 and included, among other
events, the World Future Energy Summit
(WFES) as well. Both oil-rich countries
made bold policy pledges towards renew-
able energy development, and most nota-
bly solar photovoltaics.
United Arab Emirates
Speaking at various events during Abu
Dhabi Sustainability Week, the UAEs
Energy Minister Suhail Al Mazrouei said
the country decided recently that 44% of
the installed power capacity in 2050 will
come from renewable energies. Nuclear
energy, green gas, and clean coal will con-
tribute a further 6%, 38% and 12% respec-
tively, added the minister.
The state will be the off-taker of the
generated electricity, said Al Mazrouei,
however the UAEs government has taken
the decision to allow renewables to com-
pete. The latter, according to the minis-
ters presentations, means first that the
Government has decided to remove sub-
sidies for electricity generated through
fossil fuels and second, that all future
energy investments, for both renew-

36 02/2017 |www.pv-magazine.com

able and conventional power plants, will
need to come through private investors.
About $190 billion of investment will
be required for the UAE to meet its new
energy strategy goals, said the Energy
Minister, and this will need to come via
private investors, he noted.
Last but not least
Compared to Western nations, the UAE
has been slow in designing an energy
strategy that addresses renewable energy
development. The reason for this, argued
Al Mazrouei, is that the UAE govern-
ment wanted the new policy to come
from the bottom up, shaped via talking
with all relevant stakeholders. He did not
hide though that the boldness of the new
energy strategy stems from the UAEs
leaders, hinting at a top down approach
too.
Nevertheless, when working towards
the new energy strategy, the Energy Min-
ister mentioned a few times that apart
from sustainability, energy cost was also
taken into account. People should be able
to afford their electricity bills, said the
Emirati minister. Therefore, renewable
energy technologies rapidly decreasing
costs, most notably those of PV, were a
trigger for the UAE to shift towards a new
energy strategy, Al Mazrouei accepted.
The UAEs renewable energy target will
not only come from solar PV other zero
carbon technologies along with energy
efficiency measures will be included too,
Al Mazrouei told the WFES. Speaking at
the same WFES panel, however, Yousif Al
Ali, Director for Business Growth at Mas-
dar, Abu Dhabis state-owned company
that aims to foster renewable energy tech-
nology in the UAE, said that the Emir-
ates do not have great wind resources,
while the solar resource is abundant. Al
Ali added that Masdar watches the devel-
opment of various technologies and sees
that in the next three years the choice of
solar PV and batteries will be obvious due
to the low cost. Given the UAEs excellent
solar resource, [they] expect to see very
competitive prices for [utility-scale] PV
development in the country.
Masdars Al Ali also told WFES that
while the UAE currently follows the inde-
pendent power purchase (IPP) model,
where private investors tender for capac-
ity, developing the solar energy sector
further and aiming at larger renewable
energy capacities, the country should
perhaps examine other schemes too. This
02/2017 |www.pv-magazine.com
is particularly the case when many small
plants are dispersed as opposed to hav-
ing one big power plant in one location,
he noted.
Discussing Masdars investment plans
on a separate occasion with a press team
in Abu Dhabi, Bader Al Lamki, Executive
Director at Masdars clean energy divi-
sion, said that the company will definitely
participate in future renewable energy
tenders, when they are announced. At
the moment, there is a road map for the
UAEs new energy strategy but the details
are yet to be communicated, Al Lamki
added.
Small-scale PV
The UAE is a federation that comprises
seven emirates, of which Abu Dhabi and
Dubai are the two largest. Apart from
the federal governments energy strategy
goals, each emirate also has its own sep-
arate energy targets. Speaking with vari-
ous stakeholders on the WFES grounds
and seminars,pvmagazineunderstands
that Dubai is the most active emirate in
working towards a decentralized energy
system.
For instance, Saeed Mohammed
Ahmed Al Tayer, Dubai Electricity and
Water Authority (DEWA) CEO, told
the WFES that Dubai has set its own
strategy to generate 25% of its electric-
ity from renewables by 2015. And it is
not only the targets, Al Tayer argued.
Dubai has also set a smart grid initiative,
which includes a smart meter roll out,
while about 100EV chargers are already
installed in the city, he said. Recently too,
DEWA signed memorandums of under-
standing (MoUs) with startup companies
to test systems combining solar and stor-
age in households and businesses, track-
ing their use and performance. The goal
is for Dubai to become the worlds smart-
est city, said Al Tayer.
Such an appetite to try things in Dubai
is encouraging, however critics say that
such efforts are set to remain only exper-
imental, because the countrys very cheap
electricity price does not encourage con-
sumers to consider alternative options.
Rooftop PV does not have any chance of
being commercialized in the UAE, unless
a fundamental redesign of the electricity
tariff policy is undertaken.
Masdar City, which is a small complex
of buildings in Abu Dhabi that offers a
model for an ecocity in the region, also
launched its firstEco-Villa, a pilot proj-
Markets&Trends
ect incorporating water and energy-sav-
ing technologies such as rooftop solar.
pvmagazine was offered a tour in the
impressive villa, which will soon host
an Emirati to test it. The Eco-Villas cost
was not disclosed though, and although
such pilot projects add to the UAEs R&D
activity, they appear far from commer-
cialization at this stage.
Saudi Arabia
Saudi Arabias Energy, Industry and
Mineral Resources Minister Khalid Al-
Falih also announced at the ADSW a new
grand energy plan for the country. The
new energy master plan is set to com-
mence in a few weeks time, when Saudi
Arabias government will launch the
first round of bidding for a new renew-
able energy tender. Solar and wind power
will be the preferred technologies in these
upcoming tenders, with an initial goal of
9.5GW by 2023. By 2030, the country will
generate 70% of its electricity from nat-
ural gas and 30% from renewables and
other sources, promised Al-Falih. Other
resources include nuclear power plants,
with the government currently in the
early stages of planning for two nuclear
reactors totaling 2.8GW.
The new Saudi energy program that
Al-Falih announced in Abu Dhabi stems
from last years Vision 2030 strategy,
which aims to prepare the country for a
post-oil economy. The renewable energy
sector was relieved to hear the minister
targeting 9.5 GW of renewable capac-
ity by 2023 though, since last year the
country had significantly scaled back
its target for renewable energy, aiming
for only 3GW of capacity by 2020. The
new 9.5 GW target, Al-Falih claimed,
will require between $30 and $50billion
investment, which similarly to the UAE,
will need to come from the private sector.
Growing oil consumption
Saudi Arabia is OPECs biggest oil pro-
ducer, however the IMF recently cut the
countrys growth forecast, with the new
estimates expecting that the GDP will
only rise by 0.4% this year, down from
the 4.0% GDP growth that was predicted
in October 2016.
Hamed Al-Saggaf, the Director for
Independent Power Projects and Renew-
able Energy at the state-owned Saudi
Electricity Company (SEC), told the
WFES that Saudi Arabias growing oil
consumption will be a risk to its oil
37
 Markets&Trends
Photo: pv magazine/Ilias Tsagas
Masdars protoype Eco-Villa, a project incorporating water and energy-saving technologies such as
rooftop PV.
exports if the country does not develop
renewable energies. Peak load demand
is growing very rapidly 7% to 9% a
year and last year reached about 10.2%
to 62.5GW, said Al-Saggaf. In the last
15 years we have trebled our demand,
and in the next 15 it could double again,
to 122GW. If we continue to use fossil
fuels to reach this demand, our export of
oil will be at risk since the rate of con-
sumption of oil in Saudi Arabia is 4%
greater than our rate of [oil] production
increase, he concluded.
Solar PVs role in offering a solution
to Saudi Arabias peak load demand
was also highlighted to pvmagazine by
First SolarsVice President of Business
Development for the Middle East, Raed
Bkayrat. Bkayrat said there is definitely
potential for Saudi Arabia to tap into
solar energy more extensively in order
to address its peak load requirements,
while he also referred to the SECs ongo-
ing tender to procure two solar PV plants
with a combined 100 MW of installed
capacity.
Establishing a new policy
framework
A crucial problem in Saudi Arabia is that
the country does not have in place a regu-
latory framework for renewable energies.
Saudis have not concluded a renewables
tender so far, while concerning solar PV
specifically, Saudi Arabias only opera-
38
tional plants are a small pilot project and
a 10 MW rooftop project at a parking
facility in Aramcos headquarters, which
is the worlds biggest oil company.
Osama Khawandanah, Senior Vice
President of Energy Trading and Ven-
tures at the SEC told the WFES that
future renewable and conventional power
plants will be based on IPP contracts,
however he did not say whether the new
Saudi energy program will also include a
feed-in tariff for renewable energy plants,
in response to a question from a mem-
ber of the audience. He did promise that
SEC will commit to buying all gener-
ated electricity from the new renewable
energy plants.
UAE leads, Saudi Arabia initiates
There is no doubt that of the two coun-
tries, and within the Gulf Region, the
UAE is leading the way in renewables.
The UAEs power demand in 2013 was
27GW and is expected to surpass 40GW
by 2020. Its Energy Minister was very
positive that the country would achieve
its new energy strategy targets, while the
UAE has also ratified the Paris Climate
Agreement. In other words, the Emirates
is exercising a kind of leadership in the
green sector for the region, and although
both solar PV and concentrated solar
power installed capacities are currently
less than 200 MW, projects have been
tendered and are under implementation.
Most significantly, the UAE has devel-
oped important institutional capacity
that can support the newly announced
energy strategy. Masdar is the prime
example. The company has a rich activity
both within the country and abroad, and
while its main focus is solar and wind, it is
also making steps in carbon capture proj-
ects and waste-to-energy plants. Masdar
has a portfolio of 2.7GW of operational
power projects globally, and its main
characteristic is that it works through
establishing partnerships with foreign
stakeholders, allowing it to acquire expe-
rience in various renewable energy areas.
It is also leading a consortium develop-
ing the mega 800 MW Phase 3 of the
Mohammed bin Rashid Al Maktoum
Solar Park in Dubai, for which GranSo-
lar, Acciona, and Ghella were awarded
the EPC contract last month. The Abu
Dhabi Water and Electricity Authority
(ADWEA) is also a leading institution
aiming to develop solar in the Emirate,
while in the neighboring Dubai Emir-
ate, DEWA is leading the way, with plans
that include the Mohammed bin Rashid
Al Maktoum Solar Park and others.
Saudi Arabia, on the contrary, has no
previous institutional experience and
expertise in the renewable energies sec-
tor to showcase. Thamer Al-Sharhan,
Managing Director of ACWA Power,
the countrys leading renewable energy
developer, told a WFES panel that pri-
vate firms always allocate and measure
the market risks and come up with prac-
tical solutions. To do so in Saudi Arabia,
he argued, the new energy master plan
needs to be accompanied by a clear, fair
and transparent regulatory framework
that promotes competition among pri-
vate stakeholders.
Furthermore, according to leading
Saudi executives speaking at the WFES,
the government wants the country to
develop strong domestic R&D and local
manufacturing sectors in the green sec-
tor. It is not clear yet what form the
upcoming Saudi renewable energy ten-
ders will take in order to pursue such
goals.
One thing that is certain is that Saudis
need to make a fast move. The country is
in dire need of diversifying its economy,
and since this is linked to the electric-
ity sector, a way to start is by reforming
the electricity subsidies. The following
months will show whether Saudi Arabia
can learn quickly enough. S Ilias Tsagas
02/2017 |www.pv-magazine.com
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 Markets & Trends

Photo: Solar Solutions

The Exasun black glass-glass back contact PV module,which is produced in the Netherlands, presented at the
Solar Solutions trade show.

Strong and stable

Dutch PV opportunities: The Netherlands has been a latecomer to the renewable
energy table. Still known as a gas-land, the Netherlands is among the bottom three
worst performing countries of Europe when it comes to clean energy. But the country
has found the way up and is creating the conditions for a stable and upward trend.

The advantage of deferral has given the
Netherlands, a latecomer to the renew-
able energy table, the edge in being able
to learn from other countries past mis-
takes. Along with the urgent need to
invest in clean energy in order to meet
EU demands, the Netherlands is creat-
ing a stable market for the coming years.
The Dutch solar market has been grow-
ing at a steady pace for the last five years.
It is foreseen that the market will remain
stable and grow until at least the end of
2023. The net metering system will be
in place until 2020 as guaranteed by the
Dutch minister of Economic Affairs. An
intense debate has been going on in order
to maintain the current net metering sys-
tem after 2020. Branche organizations
who represent installers, home owners,
housing corporations, consumers, farm-
ers, and many more all want to maintain
the current system. They believe this is
necessary since the Netherlands is still
way off target with its renewable energy
goals. The net metering system is success-
ful and easy to understand to end users
and they fear that any change to a system
or even a debate for fear of uncertainty
will slow growth of a market that is still
fragile and has just awoken.
The Dutch parliament passed a reso-
lution in December 2016, which stated
that net metering will continue until the
end of 2023. Also the Chairperson of the
national Agreement on Energy for Sus-
tainable Growth, former minister Ed Nij-
pels, has said that changing the net meter-
ing system after 2020 should not be on
the table for debate. His argument is that
every kilowatt hour is needed to meet EU
targets. The Dutch minister of economic
affairs (whose party also passed the reso-
lution to continue net metering until the
end of 2023) will make his final decision
this spring (possibly after the upcoming
elections in March).
Installed capacity
On January 25 the annual Dutch Solar
Trend Report was presented during the
leading Dutch conference on solar energy,

40 02/2017 |www.pv-magazine.com

Graphic: pv magazine/Harald Schtt
Annual PV market growth for the Netherlands
700 Added capacity (MW/year)
600
500
400
300
200
220
100
21
0 59
2010 2011 2012
* based on preliminary estimations
the Solar Business Day. The Dutch mar-
ket had a total of 2GW installed at the
end of 2016 (about 1.5% of total Dutch
annual electricity consumption).
The annual Dutch solar market is
divided up into about 50% to 60% resi-
dential as of 2016, and the rest consists
of commercial projects like the rooftops
of agricultural companies, industry, and
business parks, and open field projects.
The market share of commercial projects
is growing. For these commercial proj-
ects subsidies are available (called SDE+).
And since the EU 2020 and 2023 targets
are still far away, the Dutch government
is investing ever larger sums in renew-
ables. For 2017 alone there are 12billion
available for large commercial sustain-
able energy projects and for PV projects
larger than 15kW. At the beginning of
2017 the largest commercial solar park in
the Netherlands (30MW) was opened,
which is a clear sign that the Netherlands
has found its way up on the clean energy
ladder.
Trends in the Dutch market
The Dutch market chain consists of com-
panies active as (process) equipment
manufacturers, end-product manufac-
turers, wholesalers, installers and sys-
tem-integrators, and non-technical ser-
vices. Overall, 2,100 companies are active
in the Netherlands, employing around
9,000 full-time workers and creating a
total turnover of 2.5billion.
There is a general consensus about the
future growth of the Dutch solar mar-
ket. There is already talk about reaching
02/2017 |www.pv-magazine.com
Spreed
minmax
120 MWp
500
467
377
302
2013 2014 2015 2016*
Source: Dutch Solar Trendreport / Solar Solutions
1GW of annual newly installed capac-
ity in either 2017 or 2018. If net meter-
ing stays intact until the end of 2023, this
will slow the development of the storage
market. Still, many solar professionals
remain strongly positive about the energy
storage market and expect growth. Many
companies will take storage products
into their portfolio over the upcoming
two years. From the Dutch Solar Trend
Report we know that the largest demand
for knowledge in the Dutch market is for
subsidies and government policy, and on
the other side information about energy
storage possibilities.
This hot storage market will grow
into two markets: First is the utility-scale
market. The business case for utility pur-
poses is in ramping of wind farms and
coal and gas-powered plants, as well as
frequency regulation for the transmis-
sion systems operator and off-grid sys-
tems like on islands and coastal appli-
cations. The business case for residential
storage applications can be found first
in self-consumption, second in lower-
ing capacity tariff in the fuse box, third
in backup systems (e.g. alarm-systems),
About the author
Rolf Heynen is the Director of Solar Solutions international trade fair
(upcoming March22 & 23 , the Solar Business Day conference and author
of the annual Dutch Solar Trend Report. His company is also active in
LED lighting, energy storage, district heating, consulting, and market
research. Heynen holds degrees in both electrical engineering and politi-
cal science.
Markets & Trends
and finally in over voltage protection
and wanting to be truly energy inde-
pendent. Many battery companies have
already become active in the Dutch mar-
ket in order to build a network of sup-
pliers and installers and getting to know
this market.
MIP and Dutch customs
Another defining aspect of the Dutch
market is the import of PV panels
through the harbor of Rotterdam (the
largest harbor in Europe). In the Nether-
lands 3GW (11.2million PV panels) was
imported, with a total value of 1.5bil-
lion. The most striking trend in these
imports is the fact that in January 2016,
63% of imported PV panels originated
from China. Eleven months later the
share of PV panels coming from China
was down to 6%! This change is caused
by the European Minimum Import Price
regulation. Worldwide, panel prices have
been declining and the MIP remained at
0.56/W until the end of 2016. Most pro-
duction has been moved to Vietnam with
also Malaysia and Singapore on the rise
as countries of production.
Growing Belgian market
For many years, the Belgian market out-
paced the Netherlands. Unfortunately
due to government policy the Belgian
market came to a screeching halt in
2013. The result, as seen in many Euro-
pean countries due to start-stop policy of
governments, has been a painful loss of
work and many bankruptcies. Recently,
the solar market has gained traction in
Belgium, although at a slow pace. With
Belgium slowly getting on its feet, several
Dutch companies are moving into Bel-
gium, mainly in the Flanders region. And
with only one solar trade fair in the Bene-
lux region remaining, namely Solar Solu-
tions, many Belgian installers, housing
corporations and large companies ori-
ented on solar energy come to Solar Solu-
tions close to Amsterdam. S Rolf Heynen
41
 Markets&Trends

Photo: ENGIE/ Antoine Meyssonnier

Tractebel-ENGIE and PVA have conducted a strategic study, which shows that solar could provide up to 80% of
electricity for the PACA region of southern France.

Europes energy valley?

Solar in Provence: Vice-President of the French giant ENGIE (formerly GDF-Suez),
Thierry Lepercq, reveals the contents of a major strategic study. If its recommendations
are applied concretely, the Provence-Alpes-Cte dAzur (PACA) region of France could
become the California of Europe with regard to solar PV.

Engie is not a small player. Directed
by Isabelle Kocher, who is President of
the Terrawatt Initiative, which prom-
ises affordable solar energy for all, this
French group now has 159,900employ-
ees worldwide, and achieved a turnover
of 69.9billion in 2015. It is the worlds
third largest non-oil energy group, and
the worlds largest independent electric-
ity producer. Engie delivers electricity to
2% of the worlds population.
The PACA100 study led by Amaury
Korniloff is the result of an initiative of
energy startupSolairedirect. Solairedi-
rect has become a fully fledged compo-
nent of Engie. Completed in June 2016,
the study was carried out by two entities,
Tractebel-Engie and CVA who took an
open and collaborative approach and
co-financed by the Caisse des Dpts
et des Consignations, explains Lepercq.
We presented the results to the Pres-
ident of the French Union of Electric-
ity (UFE), Christine Goubet-Milhaud,
as well as EDFs R&D Director, Bernard
Salha, and representatives of RTE and Of
ENEDIS (formerly ERDF) during the sec-
ond half of 2016, and our vision is com-
mon, says Lepercq, who feels that the
exchanges were particularly construc-
tive. The UFE has itself carried out stud-
ies in the perspective of high levels of
renewable energy in Europe.
From an electrical point of view,
the PACA region is an island, explains
Lepercq, emphasizing that insularity
is the basic, founding hypothesis of the
PACA100 study. The other major hypoth-
esis is that of zero subsidy and 100% pri-
vate financing. The system will be resil-
ient, capable of ensuring its own security
and sustainability.
The study was carried out as a true
topological work integrating the 99elec-
trical power substations of the region,
continues Lepercq. Powerful statisti-
cal tools have been used, in particular to
identify possible congestion points on the
electricity grid. 100% renewables is very
manageable, thanks to an exoskeleton
of electronics of the network, Lepercq
stresses. The job is gigantic. In other
words, it will generate a lot of jobs.
The study is the result of a lot of heavy
technical work, no figures are launched
without purpose, underlines Lep-
ercq. The study benefited not only from
Solairedirects 10 years of experience in
the field, but also from the expertise of
Engies industrial team, for the costs of
solar, batteries and hydrogen-based tech-
nologies. The work is both technical and
economic, and the result is very robust.

42 02/2017 |www.pv-magazine.com

Manosque, future capital of H2?
The study outlines a way for the PACA
region with 5million inhabitants (7.5%
of the French population), including the
cities of Marseille, Toulon, Cannes, and
Nice call home to reach 100% renew-
able energy by 2030. The proposed system
includes 25GW of ground-mounted PV
plants. The targeted electricity mix will
be 80% solar PV, 5% wind, and 15% com-
posed essentially of hydroelectricity.
Two gigawatt redox batteries, as well
as other flexibility tools such as elec-
tric vehicle charging and power modu-
lation (including domestic hot water),
will enable intra-day management. Our
approach is systemic, insists Lepercq.
Everything stands.
The salt pits of Manosque, at the edge of
the forest of Pelissier, will have a key role
in the ecosystem that Engie could set up.
Excess electricity generated in the summer
months will be stored in the form of hydro-
gen via water electrolysis, and the stored
gas will be used during the winter when the
solar resource is less abundant. The land-
scape impact of this fully underground
storage system will be virtually zero. The
Storengy subsidiary, one of the first stor-
age operators in Europe, is now active on
the site, in the heart of the protected area
of the Luberon Regional Nature Park. The
Engie Group employs some of the worlds
leading gas experts. No less than 5GW of
electrolyzers dedicated to inter-seasonal
hydrogen storage are envisaged within the
framework of PACA100.
Based on our experience we have
retained a hypothesis of low acceptabil-
ity of wind due to landscape consider-
ations, explains Lepercq. In France,
some associations are systematically tak-
ing legal action to block wind projects,
which is wasting time. No new pumped-
storage hydroelectricity is foreseen in the
study, also due to the problem of environ-
mental and social acceptability. Finally,
the exploitation of eucalyptus for bio-
mass was envisaged, but ultimately set
aside: In our project the biomass is a lit-
tle excluded, says Lepercq. On the one
hand the surface requirements are too
great, and on the other, the combustion is
a source of particles and other polluting
substances. This is completely in line with
Stanford Energys studies in this area.
The 25GW of solar power stations will
occupy an area of 240km
2
. South of the
Lake of Sainte-Croix, the Canjuers mil-
itary camp was used for the PACA100
02/2017 |www.pv-magazine.com
Markets&Trends
study. About one sixth of this 350km2
Photo: ENGIE
camp is enough to meet one quarter of
the regions total needs. The PACA region
has an area of 31,400km2. France cur-
rently has 7,000km2 devoted to agrofuel
crops, in response to a very modest share
of the demand for fuels. If this surface
were to be converted into solar farms,
then not only would the entirety of the
current regional electricity demand be
covered, but also the total demand for
all types of transport, if fully converted
to 100% electricity. The efficiency of PV
generation is 180times higher than that
of thermo-mobility based on agrofuels,
according to a 2015 study by the Roches-
ter Institute of Technology.
Moreover, solar farms are micro-hab-
itats, which can be appreciated by many
living species. For example, bees ben-
efit from the absence of pesticides. The ENGIE Vice President Thierry Lepercq believes
energy return rate of solar PV is now that the PACA region in southern France can be
100% powered by renewables by 2030.
higher than that of oil, according to a
metastudy from Imperial College Lon-
don. Another report published in 2015 siders the local elected representatives
by the Massachusetts Institute of Tech- visionaries. DLVA has an area of 838km2,
nology also notes a further advantage of 10times that of Belle-le-en-mer and one
solar over biomass, in that Silicon is the tenth that of Corsica. Already 150MW
second most abundant element in the of solar power plants have been installed
Earths crust. So even if the world became and there is room for a lot more, accord-
100% photovoltaic there will be no short- ing to Lepercq. At the level of PACA, this
age of raw materials. operation will be part of a prospective
subject of major strategic interest.
The energy valley Located 15 kilometers south of
In December 2016, the representatives of Manosque, the Cadarache research cen-
the Durance Luberon Verdon Agglom- ter is one of the most important research
ration (DLVA) containing Manosque, centers on nuclear energy in Europe,
located in the Alpes-de-Haute-Provence and belongs to the Alternative Energies
and Var departments, were consulted and and Atomic Energy Commission (CEA).
voted unanimously in favor of the proj- The density of scientists and engineers
ect. The sector is endowed with peo- in this geographical area is particularly
ple who think well, says Lepercq, who high, and the Engie project could make it
is very attached to this region, and con- resemble Californias Silicon Valley.
Advertisement
pv magazines Solar Premium booth at
Integrated Energy Plaza, Hannover Messe
24 - 28 April, Hannover, Germany
Ad-Integrated Energy Plaza.indd 1 01.02.17 18:13
43
 Markets&Trends
Photo: Siemens
An electrolyzer built by Siemens in Mainz, Germany to produce hydrogen from surplus wind energy.
The PACA100 study recommends using similar technology to store energy in southern France.
Silicon Valley enjoys proximity to San
Francisco Bay and the Pacific Ocean, an
idyllic setting. The valley of Manosque-
Cadarache, dug by the Durance, is on its
side 15kilometers from the splendid Lake
of Esparron in continuity with the great
Lake of Sainte-Croix and 50kilometers
from the Mediterranean Sea.
The CEA is one of the partners of the
MYRTE test platform in Corsica, where
solar PV has already been coupled with
hydrogen storage.
Further than Musk
The cost of producing large solar
PV on the ground is now around
60/MWh in the PACA region. It
will be 60% lower by 2030, at about
25/MWh based on a hypothesis in the
PACA100study. It is a quarter of the cost
of solar modules on rooftops, empha-
sizes Lepercq. Opting for the most eco-
nomical solar makes it possible to invest
in the development of inter-seasonal stor-
age based on hydrogen.
As a result the region will attract the
electricity-intensive industries, antici-
pates Lepercq, which will further stim-
ulate the regional economy and gener-
44
ate jobs. These industries will be able
to benefit from prices in the region of
30-40/MWh. Theres an economic
boom on the way, exclaims Lepercq.
The price of electricity for individ-
uals will be 10% lower than the cur-
rent one, and 20% lower factoring in
the projected rise in the price of tradi-
tional electricity. For the rest of France,
the cost of generating electricity from
the hexagonal electro-nuclear power
plant will rise. A 100% renewable PACA
region will stimulate tourist activity by
attracting in particular eco-tourists
from the countries of northern Europe
and further afield, who are typically
sensitive to questions relating to sus-
tainable development.
For Lepercq, the PACA100 approach
is part of a process of technical, indus-
trial, and economic pragmatism: no
blockchain, no peer-to-peer, no decen-
tralized versus centralized, an opposi-
tion that the manager calls inoperative.
At the presentation of Teslas solar roof
on October 28, 2016 Elon Musk made
similar remarks: I think it is important
that people understand that the solu-
tion is both local production and power
companies. This is not one or the other,
explains the multi-billionaire entrepre-
neur. If all energy becomes electricity,
then the demand will be multiplied by
three, about one third for transport, one
third for heating, and one third for the
use we are making today. In other words,
there is room for everybody.
Musk focuses a lot on battery storage,
but Lepercq sees even further potential
for hydrogen production. Engie does
not want to be a follower, but a global
leader in the energy transition, he said.
An exciting competition is underway.
Engie has real assets, and a strong moti-
vation, and anchors itself in the context
of real demand from the French, and
more widely from European people, for
solutions allowing a reduction of depen-
dence on imported hydrocarbons. We
need purpose, explains Isabelle Kocher,
speaking in late 2015 on the BFM TV
channel. The authors of PACA100 envis-
age that by 2030 half of the vehicles on
the road in the region (1.3million), will
be fully powered by either electricity or
hydrogen.
The innovative PACA100 study poses
the scenario of an energy production
mix focused on solar and hydro, and
an adjustment to the demand, largely
ensured by the establishment of a hydro-
gen chain. At this stage it is only a study,
but there is no doubt that Engies vision
for the PACA region will inspire more
regions, and other countries across the
world. Our generation must act now to
make the Sun the future of our Earth,
said Isabelle Kocher at the COP 22 in
Marrakech.
In The Mysterious Island, a science
fiction novel by Jules Verne published in
1875 and which follows 20,000Leagues
Under The Sea, the following question is
asked: And what will be burned instead
of coal? His answer: Water decomposed
into its constitutive elements and decom-
posed, no doubt, by electricity, which will
then become a powerful and manageable
force, for all the great discoveries, by an
inexplicable law, seem to be concordant
and complementary to the same. Yes, my
friends, I believe that water will one day
be used as fuel, that the hydrogen and
oxygen which constitute it, used singly
or simultaneously, will provide a source
of inexhaustible heat and light, an inten-
sity that coal can not have, water is the
coal of the future. S
 Olivier Danilo
02/2017 |www.pv-magazine.com
 Applications&Installations
Hannover Messe 2017: steering
Integrated Energy Plaza: pvmagazine is proud to announce that
with our partners Huawei, sonnen, Suntech, S.A.G., innogy and First
Solar, we will be exhibiting at the Integrated Energy Plaza at the 2017
Hannover Messe. Benjamin Low, the Global Director of Hannover
Messe, discusses his vision for the plaza and the exhibition as a whole.
For pvmagazine, the Integrated Energy Plaza represents an
ideal opportunity to expand media activities beyond regular
online coverage and magazine distribution, at Hannover Messe,
the worlds largest industry trade fair. When Hannover Messe
contacted us to discuss opportunities of how to highlight solar
companies at the show, we were pleased to hear that the inter-
est in solar and renewables in general has grown so much over
the past few years, said pv magazines CSO Andrea Jeremias.
Highly motivated to foster this trend, we developed the idea
of a pvmagazine joint booth called Solar Premium to show-
case major players in the solar industry. In a short period of
time, Hannover Messe and ourselves set up the cooperation,
and we have since identified our solar premium sponsors, who
are excited to present their future energy concepts at the larg-
est industry show of its kind in the world to their specific tar-
get groups, namely energy investors, off-takers and utilities.
There was immediate enthusiasm from our partners, who
saw the chance to connect with the established industry to
explore various business opportunities. In addition to a joint
booth presence, the cooperation also consists of a number of
networking events. For pvmagazine it is an exciting start, and
we see huge potential in bringing solar and the players of the
Energiewende to integrate all energy sectors into one industry
committed to clean energy technology at this event.
innogy SE, part of the RWE utility, was one of the
first companies we introduced the Hannover Messe con-
cept to, and they responded with immediate interest.
Bernhard Beck, Founder ofBELECTRIC, which is now part
of innogy SE, sees the Integrated Energy concept reflected in
the strategic concept of innogy: Integrated system technol-
ogy guarantees the economic success of solar plants. The opti-
mum interaction of all components is required to reduce costs
and create reliability. In the past BELECTRIC has achieved
Solar Premium Booth Sponsors
46
important advances, such as the integration of thin film tech-
nology in solar power plants and the raising of system voltage
to 1,500VDC.
Suntech and S.A.G were other companies to identify the excit-
ing business opportunities at hand. One of their spokespeople
told pvmagazine: Wuxi Suntech Power Co. Ltd. is one of the
global leading solar high quality module manufacturers with
16years experience. S.A.G. Solar GmbH & Co. KGhas20years
of system integration experience, and with its new product
roofINVEST offers a complete system solution to commercial
and industrial customers. The attendance ofSuntech and S.A.G.
Solar signifies the relevance of offering innovative products and
complete solutions within the solar value chain in catering to
the global customer demand for green energy.
Chinas Huawei added: Digitalization will play an impor-
tant role in the new energy landscape. In large PV systems, data
measurement for the plants control system will play an impor-
tant role in the new energy landscape. Domestic technology,
meanwhile, is merging the smart home with solar PV. Huawei,
as a leading ICT company, looks forward to presenting our-
selves at the biggest industrial fair of this kind in the world.
sonnen said: sonnen is more of an energy integrator than a
pure-play hardware supplier. The customer wants a one-stop
service, and this is where we are positioning ourselves. Inte-
grated energy has an important position in the value chain,
offering these simple solutions via a single point of control.
U.S. solar firm First Solar sees the value of the Hannover
Messe as a platform for showcasing its services. Participating
at the Integrated Energy Plaza gives us the opportunity to high-
light the role that our technology will play in enabling Europes
clean energy future through large-scale solar. With over 4.5GW
of installed capacity in the region, First Solar remains firmly
committed to Europe.
02/2017 |www.pv-magazine.com

solar into the energy fast lane
Benjamin Low, Hannover Messe Global Director.
pv magazine: Can you describe the relationship that Han-
nover Messe has had with energy industries over the years?
Low: Hannover Messe is 70years old this year, and has been
taking place since 1947. It has been involved with the energy
industry for many decades. For many years we had separate
shows running concurrently under the umbrella of Hannover
Messe. We had various focal points, including wind, Mobil-
iTec and power plant technology. This has evolved over the last
few years into the leading trade show for integrated energy sys-
tems and mobility.
What interest have you seen at Hannover Messe, and other
shows that have come out of it in various forms, in renew-
able energy?
Over the past three years over 50% of the people who took part
in our questionnaires were attending Hannover Messe because
of renewable energy technology.
What I have noticed, looking at the statistics, is that through
the changes we have seen within the industry, we are also seeing
a shift in interest. So things like electric mobility, smart grids,
and energy services have increased in terms of what people are
looking for. To give you an idea of the scope, last year we had
96,000visitors to Hannover Messe energy.
That is a large number in terms of raw interest.
It is. We have people coming from all over the world. And these
people dont have time to go to various trade shows. For them
it is about clean energy, and it is not necessarily with a focus on
one source where it comes from; they are often thinking of a
mix. That is the appeal of coming to Hannover Messe. To say I
can go to one place it is a one stop shop I can inform myself
about all different kinds of technologies, and then have an idea
about what I want to focus on.
What is your vision for the Integrated Energy Plaza, and
why is it an important development for Hannover Messe?
I think our goal is to create something special that can be found
nowhere else in the world in terms of trade shows. The idea
behind it is to bring the key players within the various energy
sectors together to discuss and present solutions for the next
phase of the worldwide energy system transformation. The
movement towards more renewable energy on the grid is going
to require integrated energy solutions. We want this to be the
meeting point for people to talk about energy integration and
move it forward.
02/2017 |www.pv-magazine.com
Applications&Installations
Photo: Hannover Messe
This year we have the two major showcase initatives present-
ing themselves at the Integrated Energy Plaza. On the one side,
there are five projects tendered by the German Federal Minis-
try of Economic Affairs and Industry; these are called smart
energy topics, digital agenda for the energy transition, and SIN-
TEG. On the other side, the four projects that were tendered by
the German Federal Ministry of Education and Research (the
Copernicus Projects for Energy Transition).
What can the solar companies exhibiting at Hannover Messe
hope to achieve?
From the visitors point of view, what Hannover Messe offers
is an overview of new technologies, and developments in the
many energy sectors. In a single day at the fair one can get
an overview of new developments in solar, wind, co-heat and
power generation on the one side, and on the other side we have
the worlds largest exhibition of hydrogen and fuel cell technol-
ogies. So you get a complete overview as a visitor.
From the exhibitors point of view, you have national and inter-
national visitors from across the energy and manufacturing
industries; those are the two main visitor groups. On top of
that we also had 2,600journalists visit the show, as well as an
array of national and international politicians in attendance,
especially from Germany.
Those are some very impressive numbers. Ive been to some
very large trade shows, but this is something else entirely.
Last year we had America as our partner country, we had Barack
Obama here. It was a slightly different mood.
The Solar Premium Booth at the Integrated Energy Plaza will be
hosted throughout the Hannover Messe 2017, which runs from
April2428 in Hannover, Germany.
For more information, visit www.hannovermesse.de
47
 Applications&Installations
Photo: Arctech Solar
pv magazine: Arctech is one of the worlds largest manufac-
turers of solar trackers and mounting structures for utility,
commercial, and residential projects. With several gigawatts
of installations since 2009, how is the company differen-
tiating itself from the other leading global solar tracker
companies?
Guy Rong: Actually Arctech Solars accumulated installation
capacity has reached 10GW up to January. In terms of differen-
tiation that allows us to outperform other competitors, I would
suggest first that Arctech Solar has an efficient and reliable sup-
ply chain and service system. In India for instance, punctual
delivery and quality service are no doubt important contribu-
tors to our success.
Second, as a company with an eight year history and a 10GW
installed base worldwide, Arctech Solar has proved itself to
be a reliable and enduring brand, as well as a transnational
enterprise.
And last but not least, we have exclusive expertise in both
tracker and fixed-tilt systems. This rich product portfolio allows
us to provide on-demand products and services to our clients
worldwide. Also, our well-accepted redundant tracking tech-
nology is an exclusive and unique patent.
The company has emerged as Chinas premier solar tracker
manufacturer. With the world market open to its products,
what is the company strategy for growth within the various
geographic regions?
Since we are a technology and product driven company, our
strategy is always to customize our product and services to
cater to the specific demands of regional customers. There is
an ancient Chinese saying that says, follow the trend, which
we interpret as respect the natural, political, economic, and
market rules on a geographical basis.
Therefore, the combination of in-demand products and tech-
nology with a respect for regional market rules makes up our
company strategy. To be more elaborate, we set up subsidiaries
in our key markets, in the hopes of catering to local demand.
48
Arctech solar CEO Guy Rong at the companys offices in New Delhi, India.
Arctech Solar
on track
Interview: As part of its continuing series of Solar CEO
interviews, pvmagazine recently caught up with Arctech
Solar CEO Guy Rong to discuss the stunning growth of the
tracker maker, based in Kunshan, Jiang Su Province, having
expanded into Shanghai, New Delhi, Tokyo, Sacramento,
and Madrid.
We are also actively in search of regional partners in order to
localize our manufacturing capacity and after-sales service.
Arctech won the China PV Innovation Award in Decem-
ber 2015. How has this set the company apart from the other
Chinese tracking companies as you pursue the promising
China market?
In the Chinese market, product homogeneity is a common
phenomenon. Arctech Solar has been dedicated to innova-
tion. Our innovative design sets an unprecedented reliabil-
ity standard, which gives us a unique competitive edge in the
China market.
The U.S. tracker market is expected to grow in double-dig-
its this year. How will Arctech participate in this leading
market?
According to the recent IHS report, the U.S. tracker market
grew by 150% in 2015. It would not surprise me if the growth rate
is double-digit for this year. The U.S. is a country with a mature
market mechanism, where we dont see any type of quick solu-
tion fitting in. We will have to follow the natural path for a
brand to take root, grow, and blossom.
We will soon take our Arctracker PRO product to the U.S. mar-
ket. At the same time, we are also aware that the U.S. is a mar-
ket that values a local track record. Therefore, we think the early
performance of the product and the data it generates will matter
greatly. We have also set up an Arctech subsidiary in California
and have a local team in place. This allows us to provide local
service to our U.S. customers. In a word, we are patient and will
build up the Arctech solar brand in a comprehensive manner.
Arctech recently completed the delivery of a 420MW solar
structure to Tamil Nadu in India. How does this set the stage
for future company projects in the country?
The 420MW project in Tamil Nadu was finished in 2015. The
successful completion of this project demonstrated Arctech
Solars comprehensive capabilities in product quality, supply
02/2017 |www.pv-magazine.com

chain, and services, which has built up local confidence in
Arctech Solar. With this milestone project we have completed
more than 600MW of tracker shipments to India.
The Southeast Asia market is expected to expand rapidly
this year. Outside of China and Japan, where is Arctech
focusing its growth plans, and where has initial success
already been seen?
Apart from China, we have also taken a premier position in
India this year. The Indian market is another home market for
us. We also have some projects in development in Japan, and
are actively looking at expansion in the U.S. and Latin Ameri-
can markets.
The company has also had success in the European market,
including a 38MW project for a U.K. customer. How will the
company continue to compete in the European market?
The U.K. projects are 100MW in total. We regard our European
customers as global strategic partners, with whom we will coop-
erate to build projects worldwide.
Trackers have traditionally been associated with complex
designs, high failure rates, and high repair and maintenance
expenses. Arctech Solar trackers provide an innovative solu-
tion using a redundancy concept of two systems. How has
this helped sales?
As we all know, there is a failure rate for every electrical com-
ponent, no matter which brand you choose. Redundancy design
enables the backup system to be switched on in seconds if the
Applications&Installations
primary system fails, which enables Arctech Solar trackers to
continue to operate as usual, despite a failure that would bring
our competitors trackers to a full stop.
It brings the reliability of Arctech Solar trackers to a new bench-
mark standard, which, to some degree, makes a never stop
tracking system possible. This relieves the customers from the
fear of production loss due to tracker failure and, as a result,
Arctech Solar trackers have become the first choice of many
tier-1 customers.
Arctech recently joined the HDPV Alliance, the industry-
wide alliance focused on lowering the cost and increasing
the performance of solar PV systems. How might this rela-
tionship help the company reduce costs and boost future
performance?
Partnership is a key word in the technology world. Synergy
can be created with innovative combinations of different prod-
ucts in the supply chain.Arctech is working closely with a host
of companies in the PV industry, including but not limited to
those in the HDPV Alliance.For example, we are now work-
ing on a new integrated system including a tracker, inverter,
and modules.
This integration is actually just one of our solutions. It will
present the customers with a more reliable system with lower
total project cost, by utilizing less material, with faster installa-
tion, and with less complicated communication topology, and
so on. We will continue to work with our industry partners
and are continuously working to provide better solutions for
our customers. S Interview by Charles W. Thurston
Advertisement
 Industry&Suppliers
Having worked with the group for 15 years, Multi-Contact will now offer its connection technology under the
Stubli brand name.
Multi-Contact becomes
Stubli Electrical Connectors
Old alliances: The 15 year partnership between Multi-Contact and the Stubli Group
has now been fully celebrated, as innovative manufacturer of electrical contacts and
system solutions Multi-Contact rebrands, and takes on the well-respected Stubli
name.
Now well-established as the preemi-
nent electrical connector supplier to the
PV industry, Stubli Electrical Connec-
tors was founded in Basel, Switzerland,
in 1962. One of its most critical moments
came in 2002, when it joined forces with
Stubli Group, a provider of mechatronic
solutions in the areas of coupling sys-
tems, acting as the Electrical Connectors
Division. This partnership has enabled
the company to thrive, and to expand its
presence across various markets.
So, from Multi-Contact, it becomes
Stubli Electrical Connectors, with the
tag line: A connection for a future of effi-
ciency and sustainability. However, the
company was eager to stress that noth-
ing else is changing, the technology and
the products are staying the same, and it
is not a corporate takeover, as it has been
part of Stubli Group for 15years.
Taking on the Stubli brand under-
scores our membership in this innova-
50
Photo: Stubli Electrical Connectors
fully installed more than one billion PV
connectors, which currently makes it the
market leader.
The company is keen to keep this posi-
tion, and plans to continue to enhance its
technology to keep it ahead of the curb.
So far, the technology of Stubli Electri-
cal Connectors has been pivotal to the
progression of the solar PV industry, as
the companys connectors have allowed
for highly efficient transfer of energy and
guarantee a long service life.
Speaking on the decision to rebrand,
and to be more clearly defined under the
tive group of companies, commented umbrella of the Stubli brand, Stubli
CEO of Stubli Electrical Connectors Electrical Connectors said that the
and member of the senior management move should help it to ensure access to
of the Stubli Group Franco Delvecchio. expanded research and development
We are convinced that this step will resources in the long term. Plus, the com-
make us an even more effective presence pany said that it is proud to emphasize its
on the market. Together we can advance long-standing affiliation with the Stubli
the development of cutting-edge prod- Group, as Stubli stands for sustainable
ucts and customer-specific solutions to reliability, long-term partnership, tech-
an even greater degree. We will now offer nological innovation, and excellent sales
the entire spectrum of connection tech- and service expertise.
nology, which in such manner is unique And if that is not enough, the com-
on the global market, under the Stubli pany believes that Stubli also offers
brand. the security of access to all the neces-
sary resources that the company may
Keeping innovation key to success need, now or in the future. Although the
With electrical connectors needed in a name-change is unlikely to affect the gen-
whole variety of industries, Stubli Elec- uine mechanics of the company, this new
trical Connectors has been able to diver- brand may prove to produce a number of
sify its range of products and spread to benefits in the future, which can only be
numerous different markets. One of its a positive outcome for its products that
key markets is solar PV across the world. will be supplied to the solar market. S
In fact, the company has already success-  Sam Pothecary
02/2017 |www.pv-magazine.com
 Industry&Suppliers

Photo: Delta
Taiwans Delta recently installed its M50A string inverters at a 50MW solar PV plant in Denmark in yet another
example of the growing use of string at scale.

Bows to the string

Inverter design: It is taken as a given that developers of large-scale solar applications
are increasingly at ease with using string inverters for their projects. But what has
facilitated this evolution in the string inverter component, and what tangible benefits
does string at scale actually offer?

Amid the many fads that burn then
quickly fade in the solar industry, a
handful of hardy technical innovations
not only stand the test of time, but soon
become the accepted norm as PV bar-
rels boldly along its cost and improve-
ment curve.
One recent trend that has been not-so-
quietly gaining ground in the large-scale
sector is the use of string inverters in
favor of central inverters. Now, one might
imagine that the purchase and installa-
tion of many hundreds of smaller units
instead of a single, centrally controlled
point of command may in fact be more
fiddly, more expensive, and less attractive
to developers.
But the realities of the current mar-
ket beg to differ. Chinese giant Huawei
is the first name on the industrys lips
where string-at-scale is concerned, and
its FusionSolar solution has been a driv-
ing force behind the firms rise to the
top of the global inverter supply charts.
Huaweis grounding in information and
communications technology (ICT) gave
the company an edge, enabling it to offer
plant owners a very simple yet com-
prehensive and reliable command and
control user interface that seamlessly
managed the inverters and delivered
fingertip-ready monitoring and asset
performance.
A similar approach has now been
adopted by Taiwans Delta and Hua-
weis great Chinese inverter rival, Sun-
grow, which has recently unveiled its vir-
tual central inverter a series of string
inverters connected to one single point
of control, thereby offering both the per-
formance flexibility of string inverters
and the command simplicity of a central
inverter.
But its not just software that has facili-
tated this transition towards using string
at scale. The actual inverters themselves
are becoming more powerful, more effi-
cient, and a whole lot cheaper, creating a
near-perfect storm of improved perfor-
mance, increased reliability, and lower
cost.
The role of silicon carbide
Silicon carbide (SiC) is enjoying some-
thing of a moment in the solar indus-
try. First discovered in an attempt to
produce artificial diamonds, this syn-

52 02/2017 |www.pv-magazine.com

thetic crystalline compound does actu-
ally boast a number of properties similar
to those of diamonds, not least a resis-
tance to high temperatures and a den-
sity that delivers impressive strength.
SiC is also electrically conductive, and
is being increasingly employed as a sub-
stitute for traditional semiconductors.
For inverter manufacturers such as Sun-
grow and General Electric (GE), SiC is
being used as a replacement component
for the insulated-gate bipolar transistor
(IGBT) stack that regulates the conver-
sion of generated power into grid-com-
patible current, the actual inverter part
of the inverter, if you will. In using SiC,
these companies can not only bring down
the cost and weight of a typical inverter,
but can build at higher voltages because
SiC requires fewer parts and has lower
losses, thus enabling as much as twice
the power density as with traditional sil-
icon designs.
With fewer losses, an inverter will
generate less heat, which in turn means
that it can be more easily air-cooled and
will often not even require a filter or fan.
Such a topology is by design cheaper and
more reliable, and is the path taken by GE
with its LV5+ Solar Inverter, which was
released in 2016.
When using silicon carbide instead
of traditional silicon chips in a solar
inverter, its high power density fea-
ture can reduce power losses by up to
50%, said GE Power Conversion CCO
Francesco Falco. There are other huge
potential gains to be made through such
a small change. If a 100MW solar plant
was to be just 1% more efficient, it could
result in more than $2.5million worth
of additional energy being produced over
the plants lifetime.
As the power of string inverters
increases, so too does the weight. But
the use of SiC disrupts this power-to-
weight ratio, creating a tapering effect.
The big change we expect with SiC is
that in the past where we have had what
were classed as 100kW central inverters
weighing several hundred kilograms,
now we are seeing 125kW string inverters
that weigh 7080kg, said IHS Markit
solar research manager Cormac Gilligan.
The main benefit of this is on the labor
side: Fewer workers are required to install
the inverters, installation is quicker, and
there is a reduction in the use of heavy
machinery.
Enter Sungrow
One of the cornerstones of Sungrows
virtual central inverter concept is the
companys development of a 125 kW,
1,500volt (V) string inverter. In using sil-
icon carbide, Sungrow was able to ensure
that the inverter remained at a relatively
light weight, and thus could rightly be
considered a string inverter based on
aesthetics alone. Key to this develop-
ment was the utilization of a SiC-based
switching device that could withstand
the higher voltage rating without increas-
ing costs, Sungrow Americas Director
of Application Engineering Allan Gregg
told pvmagazine.
Industry&Suppliers
At a glance
String inverters are becoming a popu-
lar choice for large-scale solar farms, a
trend that is supporting further inno-
vation in the field.
The adoption of silicon carbide inside
some string inverters is facilitating
higher power densities, reducing
losses, increasing efficiencies, and
helping to lower installation costs.
Software sophistication also has a big
role to play, enabling the concept of
the virtual central inverter.
It is this combination of hardware
innovation and smarter software
that is driving the march of the string
inverter into previously unheralded
territory.
Silicon carbide is not what makes
the virtual concept work, but it really
helps because the smaller and lighter
these power modules of the virtual cen-
tral inverter are, the more practical it
becomes, said Gregg. The whole par-
adigm of what it means to be a string
inverter has shifted. The industry has
retained the name string, but we now
have capacities that exceed what was
at one point in time the largest central
inverter on the planet. This is an amazing
transformation in a short space of time.
The SiC technology, the high switch-
ing, has reduced mass and volume of the
power conditioning device [the IGBT
stack] to such an extent to enable a new
way of thinking.
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 Industry&Suppliers
Photo: Huawei

This 220MW solar plant in Golmud, China, was one of the first large-scale installations to be completed using Huaweis Fusion Solar approach.

The result of Sungrows engineering
efforts is its new virtual central inverter
concept. But Gregg is at pains to point out
that SiC alone is not the sole driver of this
new evolutionary approach to large-scale
plant management, but rather comple-
ments a new software interface designed
to manage these new technologies.
The most important part of the con-
cept in application is the communi-
cations and control, explains Gregg.
What you really want to have is the com-
plete command and control of multiple
string inverters, so that they will effec-
tively become a power module for the vir-
tual central inverter.
A regular central inverter installed at
a large-scale array has one data interface.
Sungrows virtual approach employs a
single interface that communicates with
every power module installed in the array
an array that theoretically has no limi-
tations in size or scale. The real beauty of
the virtual central inverter is, if applied in

Huawei launches 1,500V Smart PV Solution at WFES in Abu Dhabi

fans and air conditioning and cancellation of wearing parts, multi

Photo: Huawei
At Januarys World Future Energy Summit (WFES) in Abu Dhabi
Huawei launched its 1,500V Smart PV Solution for the Middle East
Africa (MEA) market. pvmagazine interviewed Paul Pan, Huaweis
General Manager for the Smart PV Plant Business, Middle East &
Africa, at the Huawei booth at WFES. Pan is responsible for over
70countries in MEA, where Huawei is already present with offices
serving its ICT customer base.
The fact that Huawei offices and a sales team are already estab-
lished in the MEA countries provides a good foundation to rapidly
expand its PV business in these markets. With its new 1,500V
solution, Huawei is targeting large-scale PV installations, such as
utility-scale PV power plants in desert regions in the Middle East
and Africa. As Pan pointed out in his launch presentation, the new
1,500V SUN2000-55KTL string inverter is ideally suitable for desert
environments. Huaweis unique natural cooling process does away
with fans and other wearing parts. Besides, since it is not housed
in an enclosure as is the case with a typical central inverter design,
there is no need to include air conditioning to cool the inverter.
According to Pan, Huaweis string inverter significantly improves
power yields with several innovative features, like doing away with
maximum power point tracking (MPPT) design, high EU efficiency
of 98.8%, as well as the low failure rate. Besides, such features can
greatly reduce the operational expenditure (opex) of a PV plant.
Huaweis strong background as an ICT supplier has made a high
level of equipment availability a company-wide standard. Its deep
ICT know-how helped Huawei build more robust inverters. A case
in point is its long experience in developing robust Remote Radio
Units (RRUs) for the telecommunications sector. Pan mentioned
that this track record in RRU development was instrumental in
helping Huawei build fully-enclosed inverters. Sand and dust can
impact the electrical performance, and also increase the risk of
fires in PV power plants. Huaweis full-enclosure design is able to
withstand the harsh sandstorms encountered in many parts of the
MEA region.
Another unique feature of the 1,500V inverter is the IP65 design.
Huawei is the first inverter manufacturer to offer a high-power
inverter with IP65 compliance. The SUN2000-55KTL string inverter
can operate well in the high temperatures found across the MEA
region. As Pan explains, the embedded chipset has allowed Hua-
wei to reduce the use of copper inside the inverter and make the
inverters design highly compact. The traditional 3-Level Topology
modulation is replaced by a 5-Level Topology, further boosting the
inverters efficiency. Pan predicts even more steps in future models,
all with the goal of driving-up inverter efficiency, and thereby, plant
yield.
Pans MEA team was established last year and we can expect Hua-
wei to grow quickly in this region at a similar pace already evident
in other leading markets where the company is present. Prior to
launching the new 1,500V solution, Pan attended the Seventh Ses-
sion of the IRENA Assembly in Abu Dhabi and came away rather
impressed by the level of interest and funding for clean energy and
solar projects.
The industry can expect a good portion of this interest and capital
to be devoted to reliable Huawei PV equipment and technology
over the coming years. S
 Eckhart K. Gouras

54 02/2017 |www.pv-magazine.com
 Industry&Suppliers

the way Sungrow is recommending, it can

Photo: Sungrow
duplicate the functionality and all capa-
bilities of an actual central inverter, says
Gregg. A 100MW system can be con-
trolled by a virtual central inverter in the
same manner as a central inverter, and in
many ways it will be more cost-effective
in the long term, while also offering easier
repair and replacement, and lower oper-
ations and maintenance [O&M] costs.
Gregg believes that an increasing num-
ber of 50 MW-sized solar installations
will adopt string at scale in 2017, with
gradually larger and larger systems being
built this way, as the industry grasps the
opportunities inherent in Sungrows
and others string-based approach.
The larger the capacity, the fewer string
inverters you need to make it a vir-
tual central inverter. The scale starts to
become more appropriate for large-scale
utility systems when you employ 125kW
in a single 1,500V string inverter.
Central inverters have themselves By using silicon carbide to build its 125kW, 1,500volt string inverter, Sungrow has been able to keep the
become much more amenable to com- inverters weight relatively low, enabling ease of installation.
mand and control interfaces in recent
years, but Greggs point that any failure tively easy and cost-effective to replace a put it on the pad with conduits stick-
of a central inverter brings a multi-mega- string inverter, with most able to be eas- ing up. Now, I can hang my string in a
watt loss of output is valid, and likely to ily swapped out for a new one in a little much more cost-effective way. You can
strike a chord with solar plant operators under an hour. then sub-group them, and control them
keeping an increasingly sharp eye on With a string inverter that weighs from one point, and so from a command
their bottom line. 6070kg, I can mount it on the mod- and control standpoint there is virtu-
While it is perhaps accurate to say that ule array structure, says Gregg. I dont ally no difference. All these power mod-
a string inverter is more likely to fail than have to pour concrete, or bring in lots of ules will respond to my command at the
a central inverter or rather, many hun- steel. I dont have to rent a crane to lift same time. Its like Im talking to a cen-
dreds of string inverters installed have my central inverter platform off the flat- tral inverter, but Im actually talking to
more potential points of failure than a bed truck. They might even have to build 10 or 20strings that are acting as power
handful of central inverters it is rela- a road into my site to deliver that and modules. S Ian Clover

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 Industry&Suppliers
Photo: U.S. Bureau of Ocean Energy Management
pv magazine: What are your top priorities as the new leader
of SEIA?
Abigail Hopper: I have three top priorities. One is ensuring
that the tax credits that were put in place a little over a year ago
remain in place, and that there is no change in this federal pol-
icy, or any other changes on the federal side. The implications
of maintaining a steady policy environment will be important.
The second priority is to really focus on the states. As you know,
so much of solar policy really happens at the state level. It will be
important to really make sure that we are active in those states
that are undergoing policy changes, to make sure that there is
policy to really allow for the growth of the solar industry.
Third, I feel really strongly about ensuring the diversification
of our workforce. We employ over 200,000folks in the solar
industry, and making sure that this looks like our population
is a big priority for me. And also to ensure that a diverse cus-
tomer set can benefit, including people in urban environments
that might not now have access to install solar on their houses.
In your mind, what are the odds of a repeal of the ITC?
I am not going to call the odds on this. I am cautiously optimis-
tic that the tax credits that were put in place will stay in place.
It was a bipartisan agreement, and legislators understand that
there are people in their communities who benefit from solar.
Thats the view here in Washington, and it is important to
remind our legislators of the value that solar brings and how
important it is to their constituents.
56
Incoming SEIA President and CEO Abigail Hopper has held a series of
high-profile posts, including advising Baltimore Governor Martin OMalley
on energy issues.
A new era for U.S.
solar
PV landscape: An interview with SEIA President and CEO
Abigail Hopper. It is a new era for the Solar Energy Industries
Association (SEIA) and the United States. Fresh on the
heels of the election of climate denier Donald Trump, who
disparages solar and wants to bring back the coal industry,
SEIA has appointed Abigail Ross Hopper as its President and
CEO, to fill the power vacuum left by the departure of long-
time CEO Rhone Resch. A few weeks after the appointment
was made official pvmagazine caught up with Hopper,
to test the waters regarding her priorities at SEIA and her
thoughts about the U.S. solar industry and policy under the
new presidential administration.
SEIA has always emphasized that it works across the aisle
with Republicans. What does that look like under a Trump
Administration and with the current congress?
It is important that we work with both parties because what we
are talking about is job creation and infrastructure. So many
Americans are asking for solar, and they are asking for it to
be put on their homes and businesses. Our role is to educate
to have a clear communication with consumers and politi-
cians alike about the benefits that it can bring to their home
and their grid.
We now have a U.S. president who has denied the science
behind climate change and whose attitudes towards renew-
able energy are a combination of blistering ignorance and
hostility. How do you deal with such an individual in the
White House?
I would go back to education. Solar has such an incredibly pow-
erful story to tell. As I said, there are more than 200,000Amer-
icans employed by the solar industry in the United States. The
last data that I saw said that there are more people employed by
the solar industry than the fossil fuel industry.
If you look, there are over a million solar energy systems
installed in the United States that is over one million cus-
tomers that have chosen to install solar.
It really is consistent with what our new President is espousing,
to focus on investment, to focus on infrastructure, and to allow
people freedom of choice.
02/2017 |www.pv-magazine.com

As you look at the policy landscape, what do you see as the
most critical policy discussions?
I think that one of the most important themes in the solar
industry at the moment is looking out at the future, and figur-
ing out how it is that the solar industry can remain sustainable.
How do we continue to grow and how do we achieve this with
the grids that we have today?
We are only now beginning to understand the benefits that solar
systems bring to the grid, either individually or as a pool. A
lot of the conversations at the state level are on how you value
the electricity produced by solar, and continue to allow for the
growth of solar markets.
With so much clean energy policy happening at the state
level, what are SEIAs plans regarding state chapters, and
the connection between these state chapters and the national
organization?
I had the benefit of meeting the head of the California SEIA last
Friday, and what I anticipate is that like the other state chapters
we will work together. We are primarily aligned in our inter-
ests to grow solar, and to provide a clear path forward for our
industry.
As I look at the United States I see the proliferation of solar
beyond a few leading markets to more and more states,
and in some of these I have not seen SEIA being very active.
What are SEIAs plans for states where you do not have state
chapters and have not had much of a presence to date?
FRST EVA AND BACKSHEET
UL, TV & JET CERTIFIED
Industry&Suppliers
Wherever there is the opportunity to grow solar, we will cer-
tainly be active. It is our role to figure out how to capitalize on
this, and the combination of our national policy experience
and the on-the-ground expertise of local chapters can be very
fruitful.
Does SEIA have a role to play beyond traditional policy
advocacy?
I think that there are a couple of different ways in which we do
have a role to play that goes beyond traditional policy advocacy,
including the work that we are doing around consumer protec-
tion. I think that developing best practices and doing educa-
tion with state legislatures to ensure that we have very strong
consumer protection in the solar industry are both highly
important.
Thinking about how we communicate regarding the benefits
of solar is different than policy, and I think the communica-
tion aspect is important. And as you know we do a fair amount
of research, so that we know what the current state of the solar
industry is, and that will definitely continue.
Is there anything else we havent talked about that you think
is important to our readers?
We talked a lot about priorities number one and two, but I
would reiterate priority number three: Diversity is incredibly
important to make sure that solar is accessible to all parts of
our society so that the benefits of solar can be shared by all
Americans. S  Interview by Christian Roselund
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 Industry&Suppliers

Photo: Schmid
Equipment manufacturer Schmids DW Tex texturing machine, which removes saw damage from diamond wire
sawing of multicrystalline wafers.

What comes after PERC?

Upgrade cycles: Having conducted extensive research along the PV value chain,
and numerous interviews with equipment suppliers and PV manufacturers, Gtz
Fischbeck, CEO at Smart Solar Consulting, shares his conclusions regarding future
investment in novel cell technologies, and the outlook for addition of cell capacities.

During the current investment cycle of
the solar value chain, which picked up
in 2014 and is still ongoing, there is one
technology that clearly dominates the
investment decisions: PERC technology.
With the PERC upgrade cycle still in
full swing, as several announcements of
equipment supplier Meyer Burger for new
PERC upgrades in January 2017 high-
lights, the question for the solar industry
and PV equipment manufacturers in par-
ticular arises, why is PERC technology so
popular what will come next?
Based on our research, we can draw six
main conclusions: We expect to see sig-
nificantly fewer new capacity additions
announced from 20172019, compared
to 2014 through 2016. For the next two
years PERC upgrades will dominate cell
technology investments and monocrys-
talline cell technologies will continue to
gain market share over multicrystalline
cell technologies. It doesnt look like we
will see a significant resurgence of the
interest in selective emitter technology
any time soon. Other emerging technol-
ogies like diamond wire sawing of multi-
crystalline wafers and novel/improved
metallization technologies will see steady
growth, albeit at a much slower rate than
the PERC technology adoption. Hetero-
junction (HJT) cell production lines will
only start to gain market share once the
industry enters a new capacity cycle and
PERC technology has fully matured. The
arguments for our findings are as follows:
Capacity additions will
substantially slow down
The past two years saw more than 50GW
of cell capacity additions/technology
upgrades announced. These announce-
ments came on the back of unprecedented
growth in PV power being deployed in
China. According to official Chinese sta-
tistics some 34 GW of PV power was
grid-connected in 2016, more than dou-
ble the 15GW added in 2015, and more
than triple the 10GW that were installed
in 2014. Global PV power additions in
2016 amounted to some 76GW up from
55GW in 2015.
Given that in November 2016 China
lowered its 2020 target for installed
capacity from 150GW to 110GW, most
market observers believe that China will
curtail further installations in the next
23years so as not to surpass the reduced
target by too significant a margin. As of
the end of 2016 China had registered
77GW of grid-connected PV power, leav-
ing only 33GW of new PV additions for
the next three years combined in order to

58 02/2017 |www.pv-magazine.com
 Industry&Suppliers

reach the lowered target. While emerg-

Photo: Trina Solar

ing markets in Latin America, South-
east Asia, and the Middle East are pro-
jected to exhibit high growth figures in
PV installations in the next three years,
none of these markets yet have the size or
the maturity that they could compensate
for a significant shortfall in Chinese PV
demand. Assuming that cumulative PV
installations in China in the years 2017
through 2019 will not surpass 70 GW,
there is a strong argument that global PV
additions in this period will remain more
or less flat in the range of 70 to 80GW
annually.
This will leave the global PV indus-
try once again facing severe oversup- Trina Solars Duomax production line in Changzhou, China.
ply issues seriously limiting demand for
any additional manufacturing capacities. try has implemented during the current observed on multicrystalline PERC cells
In fact it is very likely that a number of investment cycle. still persist.
capacity additions announced in the past Cell manufacturers benefit from the Interestingly, Suntech made an
12 months will get shelved once again. fact that PERC technology represents an announcement in January that, based on
evolutionary upgrade, meaning they can a technology co-developed by Suntech
(Mono-)PERC for higher efficiency draw on all of their previous production and the University of New South Wales
By the end of 2016 some 15GW of PERC experience and are not forced to mas- in Australia, this degradation can be
cell production capacities were deployed sively change their production steps. fully contained. Yet the announcement
worldwide, of which more than 85% What makes the PERC upgrade even by Suntech did not disclose if or when the
were for monocrystalline cells. A fur- more compelling is the fact that efficiency Chinese tier-1 manufacturer planned on
ther 20GW of PERC upgrades/capacity improvements of around 0.8% 1.0% introducing modules with multicrystal-
additions have already been announced, absolutely can be reached with this tech- line PERC cells to the market. We have
so we can expect close to 40GW of PERC nology, and that it does not require any reached out to the company asking these
cell production capacities to be available relevant adjustments in the module man- questions, but have not received a reply
in 2019. ufacturing step. by the time of going to press.
The charm of the PERC technology So far PERC technology has been For the time being Hanwha Q Cells
lies in the fact that it lends itself both to mainly implemented for monocrystal- and REC remain the only leading inte-
upgrading existing cell manufacturing line cell production lines, as concerns grated solar manufacturers that commer-
lines and is also the technology of choice regarding the elevated temperature cially offer modules with multicrystalline
for capacity additions that the indus- light-induced degradation that has been PERC cells.
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 Industry&Suppliers
Photo: Hanwha Q Cells
PERC production technology at Hanwha Q Cells recently opened fab in Seoul, South Korea.
Monocrystalline (PERC) cells grow
their market share
Over the past two years the price gap per
watt between p-type monocrystalline
and multicrystalline wafers has fallen
considerably, and is now in the range of
0.0150.020/W. With the price gap
for monocrystalline wafers narrowing
and PERC technology on multicrystal-
line wafers still being hampered by seri-
ous degradation issues, it comes as no
surprise that monocrystalline cell tech-
nology has been gaining ground. One of
the leading global wafer manufacturers,
LONGi Silicon Materials, has responded
to the increasing market demand for
monocrystalline wafers, and announced
significant capacity additions. In January
2017 LONGi disclosed that it had started
construction on a 5 GW monocrystal-
line ingot facility in Lijiang, southwest-
ern China, together with its two joint
venture partners Trina Solar and polysil-
icon maker Yongxiang. Production start
for the new facility is scheduled for the
first half of 2018.
Similarly to Trina Solar, SolarWorld is
shifting more and more of its capacities
over to monocrystalline technologies.
Even Hanwha Q Cells, one of the leading
multicrystalline proponents in the solar
industry, is adding more emphasis on its
monocrystalline activities, stepping up
its investments in this area. In light of
60
these developments we see strong indi-
cations that monocrystalline technol-
ogies continue to gain momentum and
thus market share.
Selective emitter technology does
not appear to be the next big thing Among other technologies pushing for-
With PERC technology minimizing the
loss contribution from the rear surface
of the solar cell, and gradually becoming
the next quasi-standard, (mono) crystal-
line cell technology as we predict, it is
straightforward to assume that R&D in
the solar industry will once again shift
towards tackling the loss mechanisms
attributable to the front surface. In 2010
and 2011 many equipment vendors pro-
moted selective emitter technology as the
technology of choice, in order to reduce
losses at the front contact of the solar
cell. Ultimately the gains (at the module
level) proved to be limited, as much of the
increased short wavelength sensitivity of
the solar cell achieved through applying
selective emitter technologies did not
fully translate into higher energy yields
of the modules, because both the front
glass of the module, as well as the encap-
sulant, only exhibit limited transparency
for this part of the solar spectrum.
In the meantime, suppliers of front
side metallization pastes have made sig-
nificant progress with their recipes the
new pastes achieve a good electric contact
even on highly doped surfaces, reducing
the need to selectively dope the front side
surface of the solar cell.
Other technological
developments
ward, we would highlight two technolog-
ical developments that we believe stand
good chances of capturing increasing
traction over the next two to three years.
One of these technologies is diamond
wire sawing of multicrystalline wafers.
For monocrystalline wafers diamond
wire sawing has already established itself
as the new standard for state-of-the-art
production facilities. The higher through-
put of the wafer saws and the lower kerf
losses are convincing enough arguments
for switching to this technology.
The adoption of diamond wire saw-
ing for multicrystalline wafers has been
hampered by two factors: yield issues
based on more frequent wafer dam-
age when cutting wafers from multi-
crystalline ingots with diamond wires,
and costly surface treatments required
in order to achieve the desired surface
topology for maximum cell efficiency.
While improved crystallization pro-
cesses have been able to reduce the yield
issues to acceptable levels, there are still a
number of surface treatment approaches
to tackling the sawing damages that are
02/2017 |www.pv-magazine.com

being investigated in R&D labs and on
pilot lines competing to provide the most
cost efficient process step.
In a future issue of pvmagazine we
will take a closer look at competing
approaches for the surface treatment and
will highlight which technologies from
our point of view have the best chances
of reaching the cost and performance
requirements set by the industry.
The other field of continued research
tackles the front side metallization pro-
cess. More than six years ago many
experts predicted that screen printing
technology would soon be superseded
by superior technologies, such as ink-
jet, laser deposition, or plating technol-
ogies. As of today screen printing is still
the method of choice. The competing
technologies all proved to exhibit seri-
ous disadvantages compared to screen
printing when it came to production
yield and cost, the ultimate determinants
that decide whether or not a technology
is suitable for industrial production. The
screens, the printers, and particularly
the pastes have seen such significant
improvements over the past six years that
the bar for competing metallization pro-
cesses has been continuously raised.
Yet we have heard of promising results
both from plating approaches and extru-
sion technologies. At the pilot line stage
these appear to yield the required advan-
tages, making them serious contenders to
challenge the reign of screen printers for
the front side metallization process.
Heterojunction will have to wait
Besides PERC technology, heterojunction
is being promoted as the next big thing.
We dont believe its time has come quite
yet for a number of reasons:
Given the very limited growth expec-
tations for PV demand in the next two
to three years, the solar industry is likely
to end up facing another oversupply sce-
nario, which may last all the way through
2019. As we have already pointed out, the
key determinant to the extent of the over-
supply scenario is the market size for PV
installations in China in the next three
years. Unless China keeps adding more
than 30GW of PV power each year up
until 2019 we believe there is hardly any
chance for the photovoltaics industry to
avoid having to go through another over-
supply period.
In order for the industry to achieve
satisfactory utilization rates of their
new production facilities, global annual
demand would have to expand to around
90GW in 2017 and beyond. If Chinese
annual PV installations were to fall by
around 10 GW compared to the levels
reached in 2016, we dont expect to see
these demand levels reached globally
before 2020.
In such uncertain times, when price
competition once again leaves all the PV
manufacturers scrambling for cash, the
investment risk of adopting new hetero-
junction cell technology appears to be
rather high.
Even established cell manufacturers
with many years of experience in mono-
crystalline cell production have to make
massive changes to their production pro-
cesses when adopting heterojunction
production technology. The switch over
to heterojunction cells requires a large
investment in completely new produc-
tion lines, without providing the option
to upgrade existing tools. The limited
availability of n-type monocrystalline
wafers at this point in time, as well as the
Industry&Suppliers
fact that for heterojunction solar cells
novel interconnection technologies at the
module level (i.e. Smartwire and the like)
are being promoted as necessary to reap
all of the advantages that heterojunction
cell technology provides, further impede
the adoption of heterojunction. It would
require substantial investments for both
ingot manufacturers and module manu-
facturers to overcome these constraints,
which they are not eager to make in these
uncertain times. Therefore we conclude
that widespread adoption of heterojunc-
tion cell technology will not occur before
the oversupply woes can be mitigated.
The only other scenario we could envi-
sion that might lead to a faster adoption
of this technology would be if one or two
tier-1 manufacturers opted to leapfrog the
PERC upgrade route and invest directly
in heterojunction technology. Currently,
we see no indications that anything like
this could be in the works for the market.
In summary, in terms of business suc-
cess for the photovoltaic equipment ven-
dors the emphasis in 2017 and 2018 is to
undertake everything necessary to min-
imize the level of order push outs or,
even worse, order cancellations. We see
a high risk that order cancellations might
exceed new orders in 2017, in particular
once the grace period for PV installations
in China at 2016 FIT rates comes to an
end by the middle of 2017. While we do
know of a number of interesting novel
technologies that are already being eval-
uated beyond the pilot line stage, we are
not holding our breath expecting a simi-
lar breakthrough of any of these technol-
ogies within the next two to threeyears as
we have seen recently with PERC technol-
ogy over the past three years. S
 Gtz Fischbeck
Advertisement
 Industry&Suppliers
Photos: Von Ardenne
pv magazine: Von Ardenne has developed its Scala tool for
HJT cell production. What was the intention in developing
this tool?
Kristin Ldemann: The intention was to have a platform that
was more dedicated to R&D and pilot production purposes.
This enables Von Ardenne, and also our customers, to develop
new technologies and provide proof of concept or principle. It
is a vehicle on our side to start enabling us and our customers
to improve processes and support R&D.
How would you say it has been received by the market?
I would say that it has certainly gathered interest. I cannot say
that at the moment there has been a tremendous increase in
sales from the Scala tool, but it does enable us to speak with cus-
tomers that are not yet investing in very large production vol-
ume. It is certainly a must have at the moment to talk to cus-
tomers and to support these potential investments.
We will use the Scala for our own purposes for more R&D-
related projects, to incorporate the tool into institutes in Ger-
many, and to use them for further technological development.
Certainly we feel that we have some interest in that people are
not only talking about very big steps into new technologies. So
people are definitely attracted to the tool, even though I cannot
say there have been very big sales.
What are the precise applications that drive manufacturers
and research bodies to deploy the Scala in c-Si production?
It is independent to the technology segment within c-Si. It can be
used for HJT production, in particular for the transparent con-
ductive oxide (TCO) and metallization layers. It can be used for
pure metallization that is more interesting for back contact (IBC)
cells. It can also be used for any development that is looking
more into the evolutionary technology development for main-
stream PV. So it is not yet used for anything that is state-of-the-
art within the mainstream, but there are incremental improve-
ments, and those are all actually addressable with that tool.
62
There are incremental improvements [within mainstream PV] and those are
all actually addressable with that tool [the Scala and XEAnova].
Increasing
interest in HJT
Heterojunction equipment supply: Germanys Von
Ardenne boasts 40years of sputtering experience in the
industry, and has recently developed the Scala tool to
bring greater improvements to HJT cell production. Kristin
Ldemann, VP of Crystalline PV spoke to pvmagazine
about the tool, and the future of HJT.
Looking at the c-Si market at the moment, there has been a
huge wave of investment into PERC. Do you believe that HJT
is the next logical step?
For the moment, HJT is the workhorse for some sales. We
are in contact with the IBC guys, but as you know there are not
too many players in that part of the market. Those are the two
market segments that we are addressing with our tools already.
We are looking into potential developments within the main-
stream, the PERC cell, and what comes after PERC. We are not
yet there, but the market is not yet ready to receive another tech-
nology improvement. So there will be another wave, perhaps
three or four years from now, and this is something we address
at the moment on the R&D level.
Von Ardenne has supplied tooling for some 1.3GW of HJT
production. Are you seeing more HJT flowing through into
production now?
We have this tool that we introduced more than two years ago,
the XEAnova. This is the production platform for HJT cells.
This tool, like the Scala, is used for the TCO layers within the
HJT cells, as well as, if necessary, the contact layers.
You are cooperating with Ideal Energy, a supplier of PECVD
equipment for HJT production. What do you make of the
prospects for atomic layer deposition (ALD) tools to carry
out the amorphous silicon (a-Si) layer?
I think that ALD is more commonly used in PERC applica-
tions. As far as I understand, it is not really addressing much
market share. The most common way to do the process step
in HJT is more often with PECVD. But for the layers we are
approaching, the TCO and the metal layers, sputtering is the
best solution.
What kind of performance in production are you seeing
from the HJT lines you are working on. Is the throughput
and performance required to be competitive being delivered?
02/2017 |www.pv-magazine.com

Von Ardenne has already supplied one of its Scala tools to Chinese PECVD developer Ideal Energys pilot line in Shanghai.
The most challenging stage within HJT is the PECVD process
itself, to build up the actual junction with the a-Si layer. This is
the tricky part within the HJT solar cell.
The layers that Von Ardenne is working with are on top of that,
and if there is a good HJT underneath then we can provide the
TCO and metallization. For the amorphous silicon (a-Si) layer,
the process can be tricky, there are some good players out there
that can produce good cell structures, but this is not our core
business.
And what is the major challenge with the a-Si layer?
The process parameters need to be controlled very closely
to create the right morphology of the c-Si and a-Si layers.
Another challenge is maintaining the cleanliness of those lay-
ers, because it is intrinsic and there are differently doped lay-
ers. Then, of course, comes production and process reliability,
and reproducibility.
There can be quite a narrow process window and that needs
to be found in a repeatable fashion in a production tool that
can also be a major challenge. However, I have to note that I
am not really the expert on the PECVD side of the HJT pro-
duction tooling.
Industry&Suppliers
There was a lot of cell capacity added, particularly in South-
east Asia. What are your expectations for 2017?
It is a good question, because there is an increasing interest in
HJT itself. A lot of companies are investigating those cell con-
cepts. However, on the other side, the big overcapacity that has
been built up over the last two years with mainstream technol-
ogy is also affecting those with an interest in HJT. This affects
the pricing in general for PV modules. And it may affect busi-
ness cases of those that would go into HJT, so that we see some
delays in project realization, and it is becoming increasingly
difficult to find capital for new projects.
There is a delay in investment spends in c-Si all over the mar-
ket, and this also affects the HJT part.
What about new players we do hear HJT being described
as a technology that is ideal for new entrants. Is there still
activity there?
Yes, definitely.
In which parts of the world?
Mainly in Asia. As you know, there is something going on in
the U.S., but I dont see too much from there. The new interest
is mainly driven from within Asia. S Interview by Jonathan Gifford
Advertisement
 Industry&Suppliers

Photo: Cephoto, Uwe Aranas/CC-BY-SA-3.0

TV Rheinlands headquarters in Cologne, Germany. The institute is a leading certification authority for module
manufacturers.

Climate for technology c admium telluride (CdTe) module types

from twodifferent manufacturers, and
three amorphous silicon (a-Si) module
types from three different sources. The
Module performance: Over the years researchers at TV Rheinland have tested five different c-Si module types com-
and evaluated thousands of PV modules. A field study by the institute measures prise three polycrystalline PV modules
with different front glasses, one mono-
the performance of 15 different PV module technologies under different climate
crystalline module type with heterojunc-
conditions. Gtz Fischbeck, CEO at Smart Solar Solutions, takes us through the results. tion cells, and one monocrystalline mod-
ule type with back-contacted n-type cells.
The graph (top right) illustrates why it
TV Rheinland is one of the leading land have put these hypotheses under a is extremely useful from the perspective
quality test institutes and certification rigorous test. The energy yields of 15dif- of the ultimate owner of the PV instal-
authorities for PV module manufactur- ferent photovoltaic module technologies lation to consider a well-defined mod-
ers. The set of parameters derived from have been measured over more than one ule performance ratio before making an
their tests serve to characterize the mod- year at four different locations (Germany, investment decision as to which module
ules and form the basis for energy yield Italy, India, and Arizona) corresponding technology to favor for a given site.
estimates of solar modules under field to four specific climate zones. For each The table summarizes the annual
conditions for periods of 20 years and module and each measurement instance module performance ratio (MPR) for all
more. Some of the individual tests per- a module performance ratio (MPR) has 15module types at the four different loca-
formed only take a few seconds, while been calculated that expresses the ratio tions. In the case of Chennai (India) and
others (e.g. climate chamber-related of the measured energy output of the Tempe (Arizona, USA), the two hottest
tests) take days or weeks to perform, but module in comparison to the (expected) test locations in the sample, the normal-
all are executed under well-controlled energy output of the module under stan- ized annual energy yield varies by more
laboratory conditions. dard test conditions (STC), taking into than 20% between the best and the worst
A precondition that is required to allow account the influence of module temper- suited module technology for the specific
reliable energy yield estimates based on ature, low irradiance conditions, spec- sites. In the more moderate climate zones
the measured laboratory results is the tral and angular effects, and soiling. This (Ancona, Italy and Cologne, Germany)
assumption that the derived characteris- analysis is based on an independent char- the normalized annual energy yield var-
tic parameters are stable over time, and acterization of the modules in the labo- ies by 12% and 14% respectively between
that the test conditions adequately repli- ratory, combined with site-specific data the best and the worst suited module
cate the field conditions under which the accumulated during operation. technology for these locations.
modules operate over their lifetime. The 15different PV module types tested One has to keep in mind that these
at the four different sites are comprised MPR-results are normalized to the nom-
How good are these assumptions? of five different crystalline silicon (c-Si) inal power of the modules so that the
In an extensive field study over several module types from three different ven- effective module efficiency and module
years the researchers Markus Schweiger dors, four CIGS module variants from power rating does not influence the rank-
and Werner Herrmann of TV Rhein- four different manufacturers, three ing according to MPR. This is helpful to

64 02/2017 |www.pv-magazine.com
 Industry&Suppliers

Graphic: pv magazine/Harald Schtt

Module productivity ratio by location & type

Sources: TUEV Rheinland

a-Si 3

a-Si 2

a-Si 1
- faulty -

CdTe 3

CdTe 2

CdTe 1

CIGS 4

CIGS 3

CIGS 2

CIGS 1

c-Si 5

c-Si 4 Chennai
Tempe
c-Si 3 Ancona
c-Si 2 Cologne

c-Si 1

0 MPR 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0,9 1.0

the extent that modules are typically sold most important variant when it comes to Of the four test sites analyzed by TV
on a price per watt basis. The site-specific selecting module technologies for differ- Rheinland, Chennai is the closest to the
MPR expresses the percentage of power ent climate zones. For hot climate zones equator, and therefore exhibits the low-
harvested over one year compared to like Tempe and Chennai the lower tem- est air mass of all test sites. The lower air
the expected energy harvest in the same perature coefficient of CdTe modules mass in Chennai explains why all mod-
period if the module were under standard yields an improvement in MPR on the ule technologies exhibit a positive devia-
test conditions. order of 200 to 300basis points in com- tion in MPR when compared to standard
On the other hand, as module prices parison to crystalline silicon modules. test conditions.
have come down to levels between 0.35 Second in relevance for the differences A further consequence of the lower air
($0.38) and 0.45/W ($0.49) the non- in MPR between the various module mass in Chennai is the fact that at this lat-
module related costs such as BOS, labor, technologies for applications in countries itude the irradiation spectrum is skewed
permissions, financing, and land-lease close to the equator is the spectral mis- towards shorter wavelengths compared
play an ever more important role in the match between the solar spectrum at the to standard test conditions, because less
overall calculation. Most of the non- test site versus the reference solar spec- of the blue light gets absorbed in the
module related costs do not directly scale trum at 1.5atmospheres. atmosphere on its way to the modules.
with the nominal power of the installa- Advertisement
tion. Therefore, high efficiency mod-
ules can ultimately still prove to be the
most cost efficient solution for a given
site, even if they are more expensive on a
pv magazines Solar Premium booth at
/Wp basis and have a (slightly) lower Integrated Energy Plaza, Hannover Messe
MPR than competing modules.
24 - 28 April, Hannover, Germany
How do different technologies
stack up?
Not surprisingly, the most important loss
contribution to the MPR is the difference
in module temperature under field con-
ditions versus standard test conditions of
25C. Therefore, the temperature coeffi-
cient and the operating temperature of
a given technology is indeed the single
Ad-Integrated Energy Plaza.indd 2 01.02.17 18:14

02/2017 |www.pv-magazine.com 65
 Industry&Suppliers
Photo: TV Rheinland
Markus Schweiger, researcher at the TV
Rheinland. Along with Werner Herrman, Markus
has conducted an extensive field study into the
performance of PV modules.
Thus the narrow band spectral sensitiv-
ity of CdTe solar cells in the short wave-
length range explains why the improve-
ment in MPR for CdTe modules in
Chennai outperforms the improvement
in MPR for CIGS modules by 250basis
points and the improvement in MPR for
c-Si modules by 370basis points.
The third most relevant factor distin-
guishing the MPRs of different mod-
ule technologies is their effectiveness to
convert light to electricity under low light
conditions (<200 W/m2). Once again
CdTe outshines both the CIGS and c-Si
technologies evaluated in this sample
with respect to their low light behavior,
being the only technology that does not
suffer a negative MPR contribution from
its low light performance at any of the
four different locations.
The result that crystalline silicon mod-
ules outperform CIGS modules regarding
low light performance in three out of four
test sites somewhat contradicts common
wisdom, as it was a widespread belief that
thin film technologies in general exhibit
a better low light performance than crys-
talline technologies.
66
Measuring the low irradiance behavior
of the four selected CIGS module tech-
nologies under laboratory conditions
confirmed that indeed these modules
exhibit a worse low light performance
than both the crystalline silicon modules
as well as the CdTe modules analyzed in
the TV research scope.
The overall relevance of the low light
performance factor varies significantly
from climate zone to climate zone.
Where Tempe, Arizona has the high-
est direct irradiation of the different test
sites with low light contributing only 5%
to the overall annual energy yield, this
value almost doubles to 9% for Chennai
and almost quadruples for Cologne at
19%. For Ancona the measured low light
contribution to the overall annual energy
yield amounts to 12%.
Both the angular mismatch of the
module orientation towards the imping-
ing light rays as well as the influence of
soiling on the modules energy yield are
geography-related factors and thus affect
all the different cell technologies equally
(they are an external factor limiting the
overall amount of solar irradiation reach-
ing the active cells).
Aggregated over the five different con-
tributors to the performance deviation
between standard test conditions and
actual field data, CdTe modules exhibit
the highest MPR at all four test sites.
CIGS modules as well as c-Si modules
exhibit very comparable ratios when
aggregated over the four different sites.
Long-term stability
All of the above-analyzed dependencies
of the module power as a function of dif-
ferent environmental influences have
been normalized to the standard power
output of the module at the moment
of measurement. This is necessary to
achieve the sensitivity required to assess
the relative loss contributions with a suf-
ficiently low margin of error.
But what if the overall power rating
of the modules is not stable over time
and how can you possibly measure this
unambiguously?
The approach to measuring this effect
is called self-referencing because the
module itself is used as the irradiance
sensor. Assuming both the short circuit
current at standard test conditions and
its temperature coefficient remain electri-
cally stable, the self-referencing method
can be applied. The huge advantage of
this method is that all disturbing effects
related to the effective irradiance reach-
ing the cell can be neglected. This means
that spectral effects, angular mismatch,
and soiling are irrelevant for the I-V
curve translation to standard test condi-
tions, and an accurate measure of rela-
tive performance changes of open circuit
voltage (VOC), fill factor (FF) and maxi-
mum power (PMAX) with less than 1%
uncertainty can be achieved under out-
door measurement conditions using the
running data acquisition without having
to track the sun.
Measuring the module types for more
than a year at the four different test sites
with high temporal resolution has yielded
a number of interesting results:
1. Crystalline silicon modules:
The performance of the tested crystal-
line PV modules has remained stable for
the period of investigation. Observed
degradation rates have been below the
measurement uncertainty of the method
(1%) after more than two years of expo-
sure. The heterojunction-based samples
exhibit a slight reduction of the initial
power (<1%/year) for all locations.
2. CdTe thin film modules:
CdTe module types 1 and 2 exhibited a
strong performance increase during an
initial phase (one week to several months
depending on location) followed by a
slight but steady performance decrease.
The time scale of this initial behav-
ior appears to depend on temperature,
longest for Italy (beginning of exposure
was during winter), and shortest in India
(approximately oneweek). For the mod-
ule in India it was verified that within the
first weeks of exposure the FF increases
by about 8% and VOC decreases by about
4% resulting in an increase of PMAX by
4%. For the locations in USA and India
a slow degradation by less than 2% per
year is observable, after an initial consol-
idation phase.
In contrast, for locations in Germany
and Italy no overall degradation is dis-
cernible yet annual modulations in maxi-
mum output power can be observed with
maximum values being reached during
summertime.
For CdTe module type3 the consoli-
dation phase is visible only for locations
in Germany and Italy. The degradation
is stronger than for the other types of
CdTe modules. For the locations in
02/2017 |www.pv-magazine.com

India and USA two phases of degrada-
tion are observable, a fast one for four to
eightmonths followed by a slower deg-
radation rate.
CIGS thin film modules:
The outdoor data of CIGS PV modules
from different manufacturers reveal a
great diversity. The diversity had already
become apparent in the laboratory when
the spectral response signals, low irradi-
ance behavior, and temperature coeffi-
cients revealed great differences between
manufacturers and high production
tolerances.
For CIGS modules of type1 a fast deg-
radation is observable for approximately
sixmonths at all locations. Afterwards
the output power stabilizes. In mod-
erate climates CIGS modules of type2
show a steadily increasing performance
over the two years the modules have
been observed so far. In the hotter cli-
mates, USA and India, the increasing
performance tails off after approximately
oneyear.
For the CIGS modules of type3 a sub-
stantial continuous decrease of PMAX
for three locations (Italy, India, and the
USA) was measured. The degradation is
considerably smaller for the location in
Germany.
In summary all thin film PV modules
exhibit a metastable behavior which is the
key factor influencing their energy yield,
especially during the first year of outdoor
exposure. The magnitude of the observed
effect reaches from +7% increases to
14% relative power loss in the first year
of outdoor exposure. The results indi-
cate a superposition of different physical
effects active in the various module types.
Furthermore, the observed behav-
ior is both quantitatively and qualita-
tively different even for modules of the
same technology. However, data collected
for the same module type (i.e. from the
same manufacturer) at different locations
appear consistent. Some quantitative dif-
ferences observed between hotter loca-
tions and colder ones hint at a possible
temperature dependence of the observed
effects.
The widest spread of phenomena is
observed for CIGS modules ranging from
increasing efficiency, over virtual stabil-
ity, to performance degradations. Also
for most CIGS samples initial consoli-
Industry&Suppliers
dation phases can be distinguished from
long-term trends. The consolidation of
CIGS modules can imply an increase
or a decrease of efficiency depending on
manufacturer.
The spread of time constants for con-
solidation phases of different module
types range up to almost a year, mak-
ing standardization of light-soaking
sequences for module pre-conditioning
difficult, especially in view of the great
diversity found for samples of different
manufacturers.
The high resolution and high accuracy
measurements conducted by TV Rhe-
inland reveal that even established tech-
nologies such as CdTe exhibit variations
in their longtime behavior which are not
yet fully understood. Indeed, the most
stable power rating of the investigated
modules could be observed for crystal-
line silicon modules.
In order to better understand the phys-
ics and the implications of the phenom-
ena observed in the different thin film
materials, TV Rheinland plans to con-
duct more detailed combined laboratory/
outdoor experiments in the future. S
 Gtz Fischbeck
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 Storage&Smart Grids

Photo: Nest
which sometimes includes PV generation
monitoring, if the customer owns pan-
els. However, the market will need part-
nerships with more businesses with the
same mind-set of strategic investments in
order to keep up with the deluge of non-
energy companies eyeing up this market.
Despite activity from large energy
retailers (Engie just launched the Quby
platform in Belgium), I have started to
see some negative signs from the energy
industry in the European connected
home market. Here are fourreasons why:

The learning thermostat produced by Google subsidiary Nest. Tech and telecoms companies are moving into the The Nest hype
smart home market, which could limit the market power energy companies have in this area. Googles Nest created big publicity
for the market in its early days. Thisis
clearly over,and companies have to bat-
tle against their senior executives, who

Last chance for argue that Google cant seem to make it

happen, how could anyone else?Instead

energy companies
of investing for the long term, these com-
panies might focus on short-term tacti-
cal moves to secure quick profits which
could be a difficult challenge.

Smart homes: Time is running out for energy companies in the connected home Sales so far
market, as tech giants including Amazon and Apple move to secure the lions share of Most of the sales so far have come from
established energy businesses, like Brit-
this newly developing market. Delta Energy & Environments Arthur Jouannic explains.
ish Gas or Eneco. However, if the mass
market is to happen, it wont only hap-
pen through cross-selling smart thermo-
This winter season might actually be new customers by 2018. But who will cap- stats with boiler maintenance contracts.
the last chance for the European energy ture this growth? Certainly committed Products need to be pushed through mul-
industry to establish itself in the con- companies like British Gas, Bosch, and tiple channels, like e-tailers, DIY retail-
nected home space, and to own part of Eneco think they can, and are investing ers, DIFM (Do It For Me) retailers, etc.
the customer relationship. It is extremely accordingly British Gas has earmarked Few companies if any are success-
likely that this market will soon be GBP 500 million ($620 million) to ful through that many sales channels.
attacked by giant companies such as spend in connected home over the Eneco understood this, and is now sell-
Amazon and Apple, and by large telcos next five years. Eneco also has over ing in retail outlets, where customers
and retailers entering similarly to how O2 300,000customers on the Toon platform, are encouraged to sign energy contracts
and Dixons Carphone have started to do
in the U.K. These companies will own the
Graphic: pv magazine/Harald Schtt

Annual connected Home Energy* past and predicted installations** in Europe

customer relationship if they succeed,
and the energy players will have reduced 2018
Source: Delta Energy & Environment

market power if they try to work with

2017
these companies to play in the market.
With around two million properties 2016
now equipped with either a smart ther-
2015
mostat or connected room controls, it is
clear that energy is the leading vertical 2014
of the European connected home market. * Connected Home Energy sales include smart thermostats,
2013 connected room heating controls, smart plugs,
While this number looks like a promis-
remote diagnostics, HEMs, dynamic tariffs optimisation and
ing start, Amazon has already equipped 2012 other energy related installations
three million houses in the U.S. with ** Each unit on this chart represents one installation.
2011 In some installations includes several devices.
its Echo product, in far less time than
Europes energy numbers. 2010
Based on our country-by-country 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2,500,000 3,000,000
analysis, we believe the connected home Number of properties equipped annualy
market will reach nearly four million

68 02/2017 |www.pv-magazine.com

with Eneco when buying the product.
For those going through multiple chan-
nels, most staff(installers and retail)are
not actively selling connected home
products. Euronics (a major electronics
retailer) said at the Smart Home Summit
in Frankfurt, that a few of their salespeo-
ple will specialize in smart homes, equip-
ping their own properties, so that they
can understand the end-user values, and
therefore sell it better. I am convinced
this is the way forward for retail but I
dont see too many with the same mind-
set across Europe.
Other players have the power to
disrupt
Amazon has the ability to reach out to
a lot of customers through an entertain-
ment and convenience product, while it
also has the vision that connected homes
will enable the company to increase its
core online retail business.
Like in the U.S., retailers and telcos
will attack the connected home market in
Europe with ecosystems of devices work-
ing together. Vivint announced a million
connected home customers, 10% of which
Storage&Smart Grids
are equipped with the Solar PV panels However, if the volumes dont start to
that the company connects to its ecosys- ramp up quickly, it is likely that the oth-
tem. These platforms if successful will ers will emerge with disruptive ways to
be able to cross-sell solar PV, in which capture the customer relationship. The
case some specialized solar companies energy industry would be left with no
might be left out of the game with no con- sustainable defence and might have to
trol over the customer relationship. kneel in front of the others, or be left out
Up until now, European energy com- of the connected home market.
panies have been lucky that the big global We will therefore focus our connected
players are focusing on the U.S. market, home research over the coming months
and that most telcos havent been aggres- on exploring the strategy and tactics of
sive in Europe. It gives the energy indus- some of the others such as European
try a chance to establish itself and own the telcos, as well as insurance and security
customer relationship on the energy side companies, to help energy players better
of the connected home. This would be understand the threat coming from this
hard to replicate, and establish a defend- part of the market. S
able position for energy companies.  Arthur Jouannic
About the author
Arthur Jouannic is a Senior Analyst at Delta Energy & Environ-
ment. He developed and managed the Delta-ee Connected
Home Research Service, and is currently focused on Customer
Data Analytics andproduct-related business development.
Arthur holds an M.Sc. in Renewable Energy Engineering anda
B.Sc. (Hons) of Mechanical Engineering from Heriot-Watt Uni-
versity in Edinburgh. Visit www.delta-ee.com to find out more.
Advertisement
 Storage&Smart Grids
Photos: pv magazine/Jonathan Gifford
A short sojourn around the port city of Fremantle reveals rooftop solar at every turn.
Aussies hot for storage
Distributed storage, Australia: A warm market for batteries is rapidly heating up.
The Australian storage market is set to triple in size on the distributed front alone. For
utilities it could be a blessing or a curse.
Take a stroll around any suburb in an
Australian city and a stark reality will
reveal itself: Solar is unquestionably
mainstream. Australian PV Institute fig-
ures show that the average rate of residen-
tial solar penetration, among the coun-
trys seven states and territories, stands
at 18.5%. States such as Queensland and
South Australia far exceed this, with
30.4% and 29.5% residential PV penetra-
tion rates respectively.
The additional piece of good news for
Australian solar installers and PV com-
ponent suppliers to the market is that the
rooftop market segment appears to have
hit an equilibrium point. Green Energy
Markets tracking and projections (see
chart over the page) indicate that after
some years of instability as state-based
subsidy programs came and went, around
700MW of rooftop PV will be installed
in Australia annually this year and next.
But its storage, not solar, that is making
the biggest waves.
Growing market
The Australian distributed battery stor-
age market is set to treble this year. The
stellar growth is the finding of Austra-
lian solar consultancy SunWiz, in its
2017 Battery Market Report, released ear-
lier this month. SunWiz notes that from
70
a base of 500batteries in 2015, last year
saw 6,750small storage systems installed,
worth 52 MWh. With 130,000 rooftop
arrays installed in 2016, it means that 5%
of all systems were equipped with battery
storage. Most strikingly, in 2017, SunWiz
says that the number of battery systems
installed will expand to around 20,000,
or around 15% of new solar installations.
There is a considerable retrofit market
opportunity for storage in Australia also
in play. SunWiz finds that 70% of house-
holds that already have rooftop solar
have plans to add storage to it.
The SunWiz forecast is in line with
industry analysts IHS Markit, which tips
around 15,000 to 20,000 to go in this year,
growing to 30,000 in 2018. By 2020 IHS
expects the annually distributed storage
market Down Under to be worth between
250MWh and 300MWh annually. Solar Research Manager Cormac Gil-
Market drivers
Householders in Australia are increas-
ingly interested in battery storage for eco-
nomic and emotional reasons. Australia
has high retail electricity prices by inter-
national standards, and with few signs
of price hikes ceasing, many people are
looking to significantly reduce their reli-
ance on the grid and send a powerful
message to their electricity retailer. This
sentiment is reflected in the electricity
retailer churn rate in Australia, in those
states where there is a contestable market,
which is very high.
There is also a belief in some parts of
the community that not enough is being
done to reduce carbon emissions. By
increasing their independence from grid
electricity, which is primarily supplied by
old and polluting black and brown coal-
fired power plants, some Australians see
themselves as taking action into their
own hands.
Early adopters are buying storage sys-
tems despite high payback periods, says
Bloomberg New Energy Finances Head
of Australia, Kobad Bhavnagri. We pos-
tulate that purchases may be motivated
by enthusiasm for the technology, a desire
to improve resilience, or dissatisfaction
with energy providers, and a desire to
increase independence from the grid.
BNEF calculates that payback periods
for solar-plus-storage in most house-
holds is well above 10 years. How-
ever, not all market observers agree.
This [payback period] is highly specific
to the states and even [varies] within a
state because of the difference in retail
prices, solar feed-in tariffs, and solar irra-
diation conditions, cautions IHS Markit
ligan. On average we observe payback
time between six and 10 years, but keep-
ing in mind that it can be lower if solar
resources are better than average.
There is an additional driver of dis-
tributed battery storage in Austra-
lia: Falling feed-in tariffs are stimulat-
ing the solar+storage retrofit market. A
succession of very generous state-based
solar feed-in tariffs in New South Wales,
South Australia, Western Australia and
02/2017 |www.pv-magazine.com

Queensland will begin to expire this
year and cascade around the country
throughout the decade. These tariffs can
be as high as AU$0.50/kWh (US$0.38),
and as these households are shunted
off generous FITs and towards what are
wholesale prices paid by utilities for
solar feed-in today, of around AU$0.06 to
AU$0.08/kWh, the value proposition of
revamping a solar system and adding bat-
tery storage looks particularly attractive.
Supply landscape
With this combination of compelling
drivers, there should be little surprise
that battery suppliers are swarming into
the Australian market. Germanys Senec
is the most recent arrival (pp. 7273),
and at its launch event last month, it
announced a deal to supply 2,000units
in the first half of the year. Silicon Valley-
based Enphase is increasingly banking on
the Australian storage market, project-
ing sales of more than 70,000 of its small
1.2kWh AC batteries in 2017 alone.
Senec joins a host of others includ-
ing market leaders LG Chem and Tesla,
which themselves are in a price war that
is set to push storage further still.
During 2016 we monitored prod-
uct launches and saw prices as low
as US$400/kWh and as high as
US$1,700/kWh, says IHS Markits Gilli-
gan. For reference, Teslas Powerwall2
should come at $450500/kWh before
installation costs. Looking ahead, IHS
predicts that the battery module in kWh
will be halved between now and 2020,
and similarly balance of plant equipment
are expected to reduce 1015% a year.
Utility moves
At its product launch in Perth, Western
Australia, last month, Senec company
representatives from Germany explained
02/2017 |www.pv-magazine.com
to a packed house how 90% self-suffi-
ciency is likely to be achieved by a stan-
dard household in the city with a 7.5kWh
storage system coupled to a 5kWp solar
array. With 300days of sunshine enjoyed
in Perth annually, Senec says that the
high level of grid independence will be
attractive to consumers.
Most Australian utilities are aware, to
varying degrees, of the challenge posed
by solar-plus-storage, particularly as it
moves into the mainstream. An increase
in fixed charges and further reductions
in solar feed-ins have all been mooted by
various utilities for some time, with some
considering the moves inevitable.
However, if push comes to shove and
high levels of self-sufficiency are being
delivered by solar-plus-storage providers,
such steps may prove to be the final straw,
with households opting to go off-grid.
Australian solar installs 20102018f
1,200 PV capacity installed (MW)
1,033.3
1,000
861.6
800 798.0
600
400 387.4
200
0
2010 2011 2012 2013
Storage&Smart Grids
On the flip side, there are considerable
opportunities for utilities in the rollout of
distributed storage throughout Austra-
lian grids. Some, such as AGL in Victo-
ria and Synergy in Western Australia, are
looking into ways distributed storage can
reduce peak demand, delaying or offset-
ting grid investments, and provide aux-
iliary grid services to increase stability.
It [storage and auxiliary services] has
huge opportunities because Australian
utilities face similar conditions to Ger-
man utilities. Consumption is shrinking;
wholesale market revenues are declin-
ing; the regulatory framework is uncer-
tain; retail prices keep increasing, and
churn rates are high. Were seeing a lot
of smaller retailers competing with the
incumbents like AGL or Origin Energy,
using solar and energy storage as a way to
gain market share. S Jonathan Gifford
Graphic: pv magazine/Harald Schtt
System upgrades
Commercial systems
Residential systems
801.0
712.9 723.2 719.5 717.0
Source: Green Energy Markets
2014 2015 2016 2017 2018f
71
 Storage&Smart Grids
Photos: pv magazine/Rebecca Mansell
pv magazine: What were your impressions from the launch?
Ian Parkinson (IP): We had grid companies, architects, power
management companies, the general public, and friends here to
support us. There really was a broad spectrum of people here.
Why do you think there is this interest in battery storage sys-
tems in Australia at the moment?
Sven Albersmeier-Braun (SAB): I feel that with the power
prices and the way that things are changing at the moment,
storage has become the most important aspect. This is espe-
cially true on the east coast of Australia and South Australia.
I think that rising power prices are going to drive battery stor-
age increasingly into play.
We have seen the economics of storage remain difficult
for some time. Payback over a 10 year period is not easy
to achieve, for a residential system, in most parts of the
world. What is your impression of how this will play out in
Australia?
SAB: I am really excited about the market. From the outside
it seems to be the best market globally for storage because you
have high electricity prices, time-based tariffs which is exactly
what we need for our storage systems because you can shift your
electricity to periods when that electricity is really expensive
and you can even charge your storage system from the grid
when it is really cheap.
This means that you can benefit from electricity from your solar
system, which is even cheaper than in Germany because you
have 300days of sun in some parts. Because you can cycle your
battery twice then you have a much faster payback period than
when you can cycle your system only once in the day, like you
have in Germany.
72
Senecs Head of International Development Sven Albersmeier-Braun.
The Australian
market will
be the global
number one
Distributed storage: Things are moving quickly Down
Under. German battery supplier Senec has joined the
list of companies looking to make inroads to the rapidly
growing Australian battery market, and the action is on
the residential front. Senec launched its product in Perth,
Western Australia, in January. pvmagazine was on the
spot and spoke to Senec Australia Managing Director Ian
Parkinson and Head of International Development Sven
Albersmeier-Braun.
One of the keys to Senecs growth in Germany has been the
innovative operation strategies and options for consum-
ers such as the Economic Grid and the Vario. What is your
understanding of how these models will play out in the Aus-
tralian markets?
SAB: As we see it right now we wont begin an initiative to
become a utility in Australia like we are in Germany. The Aus-
tralian energy market is not as deregulated as European mar-
kets. This makes things difficult and it was difficult enough in
Germany! So we will partner. This is why we have been engag-
ing, in Western Australia, with the people from Synergy [the
Western Australian state-owned utility] and Western Power
[the WA grid operator] so we have all the interfaces they need
to manage their grids.
I strongly believe this is something we can do one particular
buzz word is microgrids.
There are climatic challenges, primarily the heat, in Austra-
lia, and even things like bugs and spiders that can crawl into
a storage system that will present a challenge for a German-
made product. How do you see these challenges?
IP: Our major challenge is where we can store the battery in
the home. At the moment it is not allowed to locate the battery
within any of the inhabitable areas. That is going to mean that
temperatures will be a concern. But all battery manufacturers
will be facing the same problems.
I see the product that we have as having the capability of pro-
tecting itself from these temperatures. We will be looking to lift
the IP [Ingress Protection] rating. Additionally, the function-
ality of the Senec system far surpasses many others. We are not
simply introducing a battery, we have an intelligent energy stor-
age system. I am sure we can meet the challenges.
02/2017 |www.pv-magazine.com

I am a Perth boy myself and I know there are challenges in
connecting with the east coast cities like Sydney, Melbourne
and Brisbane many thousands of kilometers away. What is
your strategy for meeting this challenge?
IP: The benefit of being based in Perth is being able to link with
Germany late in the afternoon for trouble shooting, and being
able to communicate more easily. If there are issues in the east,
we can communicate with head office and get the answer basi-
cally the next morning, to the customer.
We are also setting up with other companies to distribute the
systems and all I can say at this stage is that we are going to
have a really high standard of installation. We are not going to
let just any installer work with the product. You dont buy an
expensive car from a second-hand car dealer. In the same way
we are going to make sure we use really high quality installers,
to ensure our product is well protected.
The Australian storage market is evolving very quickly at
present. What is your impression about the appetite for resi-
dential battery storage in Australia at the moment?
IP: As Sven said, weve been having conversations with Western
Power and they told us they are getting 15applications a week
for storage connection [in Western Australia]. I expect that to
treble towards the end of summer [Q2] and we are hoping to
capture some of that market. I think people are also a little bit
tired of some of the Chinese products and I think that with a
well-made German product, we are well placed.
How important do you believe the 90% self-sufficiency fig-
ure, which you believe you can deliver to the standard Aus-
tralian household with a 7.5kWh system attached to a PV
array, will play as a sales proposition?
IP: In Australia there is a real buzz and everyone wants to get
away from coal. People are thinking about their children head-
ing into the future. People are thinking about different ways
they can play their part and adopt renewable power, and the
battery is the most important element. So this is why we have
brought the Senec battery to Australia.
Storage&Smart Grids
Senec Australia Managing Director Ian Parkinson and Director of Operations
Jason Brooks.
Timing is always crucial for entrance into markets. Why
now?
IP: Since the end of October when I first spoke with Sven I have
been saying, we have to be operational by the first of January.
And we have a great team and really great product, so I am
delighted that we can bring it in now.
But there is a lot of competition in the market right now,
with some companies like Tesla and LG putting a lot of
downward pressure on prices.
SAB: Competition is extremely important because only with
a lot of competitors can a market really be driven. It is hard to
develop a market alone. It is much easier to have 10 or 20com-
panies that also work in this market. The market is huge and
there is enough space for even more companies to come to this
market.
I am of the opinion that the Australian market will become
the global number one market for distributed battery storage
within two years. The potential is so high because the density
of solar installation is so high, and the climate is so good for
solar. S
 Interview by Jonathan Gifford
Advertisement
 Service

Production technology

Manz enters into massive CIGS partnership in China

The German toolmaker will supply 263million ($283 million)

Photo: Manz AG
worth of thin film production equipment to two Chinese com-
panies, as well as turning over its R&D company to a joint ven-
ture. If China has a firm grasp on todays solar manufacturing,
the nations companies are ensuring that in many ways they
will own the future as well. Through the collaboration Manz,
Shanghai Electric, and Shenhua will establish a jointly-owned
R&D company, to which Manz will contribute its current R&D
subsidiary Manz CIGS Technology GmbH. Manz will hold a
15% share of the joint venture, and will be compensated by a
net amount 25million ($27 million).
Additionally, Shanghai Electric and Shenhua have placed orders
for 263million ($283 million) worth of Manzs CIGSfab turn-
key CIGS production lines. Pending approval by the Chinese
government, these orders will show up in revenues in 2017 and
2018. This is the latest cooperation between Manz and Shang-
hai Electric, which entered into an agreement in February to
take a 30% stake in the German toolmaker.

Distributed solar

Berkeley Lab finds negligible potential rate impacts from distributed

solar
The latest report from the respected national lab finds that even
if behind-the-meter solar is raising the rates of other utility
customers, the impacts are tiny, especially compared to other
activities.
Despite being repeatedly disproved, the myth of cost shift from
PV system owners remains widely propagated by utilities and
either poorly informed or outright captured politicians and
regulators.
Lawrence Berkeley National Laboratory (LBNL) has taken
another tack with its research. Instead of looking at whether
solar is imposing a cost shift onto other customers, the national
Photo: Suncommon
lab is examining the overall potential rate impact of distributed
solar generation under a variety of valuations, and comparing
this to other rate impacts.
In most cases, the effects of distributed solar on retail electric-
ity prices are, and will continue to be, quite small compared to
many other issues, reads the reports conclusion.
At current national penetration levels, the report finds that
distributed solar would bring no more than a $0.003per kilo-
watt-hour long-run increase in retail utility prices, but that the
result could also just as well be a decrease of exactly the same
magnitude.

74 02/2017 |www.pv-magazine.com

Production technology
Midsummer announce lightweight CIGS modules at 14% efficiency
Swedish production manufacturer Midsummer has announced
that its client, an Asian module manufacturer, is producing
lightweight flexible modules with CIGS technology with a con-
version efficiency of 14%.
Japanese Independent research group Chemitox Inc. tested
modules produced on this clients production line, based in
Yamanashi prefecture. The modules tested were produced
under normal conditions with a CIGS layer less than 1micron
thick.
Service
Photo: Midsummer
Back in May 2016, Midsummer announced that they had
received orders for their DUO flexible substrate CIGS produc-
tion tool from the unnamed Asian client.
I am happy to announce that our solar modules have increased
conversion efficiency to 14%. The DUO system is now the most
widely spread manufacturing tool for flexible CIGS solar cells,
said Midsummer CEO Sven Lindstrm. Lightweight flexible
modules are the future of solar energy, since they can be fitted
on to buildings, vehicles, etc.
Advertisement
 Service

On the road with pv magazine

Where were going: PV Expo Japan

March13, Tokyo Big Sight, Japan

provinces under current policies, with
Photo: ??????

curtailment of solar power a problem

Much of the talk that dominated the PV
Expo event in Tokyo last year focused on
the countrys so-called three year peak,
with numerous experts predicting solar
installation levels to flatten but remain
close to 10GW per annum until around
2018, before a slow and steady decline.
Data from early in 2017 suggest that last
year ended on something of an upturn for
solar, with PV representing 5% and 6% of
the nations total electricity generation in
quarters three and four respectively.
Over the course of 2016, the Ministry of
Economy, Trade and Industry (METI)
has calculated that solar met 4.3% of
electricity production last year, up from
2.7% in 2015. However, the challenge of
improving upon that figure could prove
steep. PV is thought to be nearing the
limits of what will be feasible in several
nationwide, and the funds to compensate
developers for this reaching their limit.
So, it is through this prism of impending
PV constraint that more than 400exhibi-
tors and 70,000visitors will approach this
years PV Expo in Tokyo. Can the Jap-
anese government implement support-
ive policies that will maintain double-
digit growth in 2017 and beyond? Or is
the projected 8GW market (according
to Mercom Capital) sufficient to main-
tain interest and profit for industry play-
ers? Is this years new building-integrated
photovoltaics (BIPV) section of the show
floor a sign of the forthcoming evolu-
tion of the Japanese solar market? Have
international companies made any fur-
ther inroads into this traditionally insu-
lar market? These questions, and many
more, will be asked by pvmagazine dur-
ing the show, so be sure to visit the web-
site for daily updates.
www.pvexpo.jp/en/

What weve seen: Qinous ships its new ESS QCompact to Tanzania

German large-scale storage provider Speaking of the Tanzania-bound system,

Qinous has shipped its latest Qinous EES which will be coupled with an existing Photo: Jonathan Gifford/pv magazine

Q Compact system to a village in Tan-
zania. Before the system was sent on its
journey, Qinous cofounder and Head of
Business Development Busson von Bis-
marck invited pv magazine out to its
east-Berlin headquarters late last year to
inspect the system.
Utilizing Samsung lithium-ion batteries,
the 4.5m2 system boasts a power output
of 90kW with 165kWh. By designing the
system to be housed in an aluminum cab-
inet kitted out with high-quality insula-
tion material rather than a larger sea
container, von Bismarck reports that the
company has been able to reduce sys-
tem costs by 30%. It also allows for eas-
ier transport to remote locations, which
larger trucks would struggle to reach.
PV array, von Bismarck said that it would
enable the village to be largely indepen-
dent of diesel generation as a power
source.
The solar facility in combination with
our storage unit offers the ideal solution
for the village to gain more independence
from expensive, environmentally harm-
ful diesel fuel, said von Bismarck.
The challenges in designing the compact
solution were numerous and included
allowing easy access to battery and power
electronic components and in ensuring
stable temperatures in the face of extreme
heat. The Qinous ESS QCompact can be
equipped with a power range of between
30 to 200 kW and up to a capacity of
335kWh. www.qinous.de/en/

76 02/2017 |www.pv-magazine.com
 Service

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Arctech Solar (Shanghai) 5

ASEAN Sustainable Energy Week (UBM) 67

Cybrid technologies Inc. 13

First PV Material Co., Ltd. 57

Fronius International GmbH front cover inside

Ginlong Technologies back cover inside

Green Energy Expo Korea 69

Growatt New Energy Technology Co., Ltd 73

Huawei Technologies Co., Ltd 3

Intersolar Global (Solar Promotion International GmbH) 11

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Schletter 61

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Sungrow Power Supply Co., Ltd. 17

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Photo: Younicos
Turkey update Poly and wafer ranking The storage sweet spot
Turkeys solar sector has been a rare source of The 2017 pv magazine ranking of leading We examine the leading regions for distrib-
positivity recently, but are stringent domes- polysilicon and wafer suppliers, compiled uted storage, as well as the drivers for cost
tic content rules proving troublesome? with the assistance of IHS Markit. reduction and deployment.

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