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implementation in Thailand
Experience transfer from Europe
co-organised by
the Delegation of the European Union to Thailand and
the Department of Alternative Energy Development and
Efficiency, Ministry of Energy
Mass Scale Competitive Solar Power
Sylvain Legrand, Solairedirect
5th October 2012
The key raw material for the production of crystalline silicon cells
and modules, silicon (Si), is the earths second most prevalent
element, representing 28% of the earths crust or 38,000 trillion
tons. It is also ubiquitous, so no silicon war is to be expected
89,000 TW
370 TW
15 TW
Solar
Source: the MIT press, Stanford University, EIA
Wind
Global
Capacity
(1) Cost of the energy-generating system including all costs over system lifetime
Energy Source
Generation costs
(new generation only, best-in class players)
Energy Source
Generation costs
(new generation only, best-in class players)
Solar PV
100/120/MWh (2012)
Biomass
100/150/MWh
CSP
140/250/MWh
Fuel (DG)
120/200/MWh
Onshore wind
55/90/MWh
Coal (imported)
70/90/MWh
Offshore wind
120/200/MWh
Nuclear (EPR)
70/90/MWh
Mini hydro
80/120/MWh
70/90/MWh
29,157
30,000
25,000
20,000
16,533
15,000
10,000
7,357
6,254
5,000
2,487
1,085
1,419
1,470
2004
2005
2006
Europe
Asia
2007
Americas
2008
China
2009
MEA RoW
2010
2011
Market dynamics
Spain
372
(2%)
United Kingdom
784
(4%)
Belgium
974
(4%)
Czech Republic
321
(1%)
Rest of Europe
623
(3%)
Italy
9,284
(42%)
France
1,671
(8%)
Germany
7,485
(34%)
1
2011 saw three momentous events for solar PV in Europe: (i) a sharp reduction in feed-in tariffs,
(ii) a drastic fall in PV systems costs and (iii) the Fukushima nuclear disaster. The foundations are
laid for a sustainable market based on a new paradigm: the energy transition
2
The
European
energy
transition
paradigm
Initiated in Germany and relayed in France over the last 12 months, the energy transition has
three major components: (i) a (more or less speedy) exit from nuclear and fossil fuels, (ii) the
concurrent development of renewables and energy efficiency and (iii) the empowerment of local
communities in what is essentially the transformation of a centrally-run electrical system to a
system with millions of distributed sources of generation
3
The energy transition comes with major changes in building (with new energy positive regulation
to be enforced in Europe by 2020) and transportation (with the development of electric vehicle
infrastructure), and is expected to generate large numbers of green jobs
4
While the energy transition is difficult to implement with expensive and/or heavily intermittent
renewable energy sources, competitive solar becomes a natural answer to implement this
transition as European states suffer from very strict budgetary constraints
5
With over 50 GW of PV connected throughout the continent, intermittency is already causing local
power overflow in certain regions, and imbalances that disrupt wholesale power markets in the
summer months. Smart grids are therefore a necessity, combining solar power aggregation,
grid integration optimization, demand response and energy efficiency,
High
Low
Source: EPIA
(ii) growth
(vi) bankability
(iv) irradiation
High
Inspire trust to pension funds and the like to raise billions of euros with the lowest IRRs
Inspiring trust to local banks to finance solar projects with longer term debt (15 years or more)
Develop the smart grid platforms and aggregate millions of intermittent sources of energy
France
- PPAs at 0.11 /kWh
- 2015 annual construction
target > 500 MW
United States
China
-dedicated to upstream
Thailand
- 2015 annual construction
target > 100 MW
India
- Awarded PPAs:
0.11 /kWh)
- 2015 annual
construction target:
120 MW
Chile
- PPAs at 0.11 kWh Indexed
on market price
- 2015 annual construction
target: 100 MW
South Africa
- Awarded PPAs: at 0.13 /kWh
- 2015 annual construction target:
100 MW
- Module assembly line (40 MW)
Solar represents a compelling option due to its ease of installation in countries with electricity shortages
About Solairedirect
Company founded in 2006, based in France, with the mission to bring fully competitive solar power to power users, utilities and
communities around the world
A leadership position in making solar power competitive globally: first Private PPAs (126 MW) signed at 108 /MWh in France, 130
$/MWh in Chile and 7 490 Rs/MWh in India, and a roadmap to deliver solar power below 80 /MWh by 2014, at par with wholesale
power prices in most geographies
A unique combination of engineering and power generation expertise which is key to deliver competitive solar power : systems
engineering and integration, project development, rooftop and ground-mounted system EPC and O&M, power contract structuring and
grid engineering, community and public-private partnerships, structured finance
A strong performance and track record: 120 MW in operation, 500 M raised in equity and project finance, 214 M consolidated
revenues in 2011 with 9% net margin