This document summarizes David Vallejo's presentation on the global solar energy business. It discusses the types of solar technologies, including thermal, photovoltaic, CPV and CSP. It describes Solarig's experience developing solar projects in Italy between 2008-2011, including the development, construction, and O&M phases. It also discusses trends in the global energy and solar industries, barriers to renewable growth, the potential role of battery storage, and outlooks for key solar markets.

1. David Vallejo
The Solar Business in the
Global Energy Perspective:
A personal experience in the
business development
worldwide
Photograph by NASA/GSFC/SDO
5th of May, 2015
Madrid

2. 1.Introduction
2.Types of Solar Energy
3.Solar Business Activites: Development and Construction
Italy Experience
4. O&M Services
5. What´s next?
6. Q&A.
2

3. 1. Introduction dvallejo@student.ie.edu
@DavidVallejo76
es.linkedin.com/in/dvallejom
• Solarig is an Spanish SME
• Only specialized in
Photovoltaic – Solar Energy
• Started its activities in 2005
and already in China in 2006
• Offices in Greece 2007.
• Offices in Italy, Bulgary,
Korea, USA in 2008
3

4. • Evaluating Solar
Opportunities around all the
world.
• Succeed tremendously in
Italy.
• Construtions in France &
Belgium
• Touch the market in India,
USA, South America.
• Construction in UK in the
coming years.
• What is next?
4

5. Types of
Solar Energy
5

6. • Thermal or Solar Thermal
• Electrical Production
• CPV: Concentrate Photovoltaic
• CSP: Concentrated Solar Power
• Photovoltaic (PV)
• Thermal panels mainly on roofs
• Only for heating water
• Shorter life than PV modules
• CPV technology very unsuccessfully so far
• CSP complex technology, huge capital reqs
• PV easiest, reliable (>30 years), profitable
• Thin-film developed was interrupted due to
reduction in Crystalline technology
• Very punctual advantages of thin-film
• Thin-film
• Crystalline (Mono/Poly)
2. Types of Solar Energy
6

7. Thermal or Solar Thermal
7

8. CPV: Concentrate Photovoltaic
Fraunhofer ISE, Levelized Cost of Electricity - Renewable Energy Technologies,
www.ise.fraunhofer.de/de/veroeffentlichungen/veroeffentlichungen-pdf-dateien/studien-und-
konzeptpapiere/studie-stromgestehungskosten-erneuerbare-energien.pdf (2013).
LCOE (Levelized Cost of Energy) for ≠ irradiations Cost Outlook: Comparison between different techs
8

9. CPV: Concentrate Photovoltaic
300 M$
Investment
9

10. CPV: Concentrate Photovoltaic
Source: http://www.greentechmedia.com/articles/read/French-CPV-Hopeful-Soitec-Exits-the-Solar-Business
• Emcore bankruptcy.
• Sharp, very bad economical
situation.
• Soitec …
• Technology was only valid for very
high irradiation areas.
• Not reliability yet.
• Even if potentiality is there
10

11. CSP: Concentrated Solar Power
Source: https://energypedia.info/wiki/Concentrating_Solar_Power_(CSP)_-_Technology 11

12. CSP: Concentrated Solar Power
• Complex and expensive
civil works.
• Several needs:
Isolated areas (flat, mirrow
reflections, water availability)
• Not commercialized in
small scale (minimum
needed 50-100 has, 25-50-
100MW)
• When feasible, profitability
higher than PV
12

13. PV: Photovoltaic: Thin-film
• Only 3 big players remain.
• Huge cost reduction in
Crystalline technology limit
its growth
• Lower efficiency (12% vs
18%)
• Better performance in some
climate extreme conditions
• “Nicer” frame and image
than crystalline – roofs.
13

14. PV: Photovoltaic: Thin-film
14

15. PV: Photovoltaic: Thin-film
• Less than 10% PV share &
decreasing from 2009 …
• 80% installed in USA & Japan
15

16. PV: Photovoltaic
16

17. PV: Photovoltaic
European facts with high
subsidies policy:
• 1st “Feed-in-tariff”
Germany 2004.
• Big “bubbles”:
Spain 2007.
Italy 2010.
17

18. PV: Photovoltaic: Crystalline
Mono-crystalline: These are produced
from silicon wafers or single cylindrical
crystal of silicon. They are noted for their
high silicon content.
Pros: Most efficient panels
Cons: More expensive.
Poly-crystalline: They are produced
from molds of melted and recrystallized
silicon. They contain lower silicon
content than the mono-crystalline.
Pros: Perform better in high
temperatures, cost less to produce.
Cons: Less efficient than the mono-
crystalline
18

19. 19

20. Solar
Business
Activities
20

21. Italy: 2008-2011
2008
Start up
business
Local
partnerships
2009 2010
Start
construction
Secure
pipeline
EPC full
capacity
Preparing
O&M and
financing
2011
New
opportunities?
21

22. Activities managed
Development:
PLAs
6-24 months
Construction:
EPC
Operation &
Maitenance
(O&M)
3-18 months
20 years
at least
Shovel /
Ready for
construction
Connection:
COD
22

23. Elements of a Photovoltaic Project: PLAs
Feasibility
Study and
site visit
Secure Land
Rights
Secure Grid
Connection
Get other
local, regional,
etc.. permits
Permits, Licences and Authorisations (PLAs)
that allow to start construction, operate during 20 years and get the subsidies
• Evaluate civil cost,
cleaning, road access,
shadows, drainage
• Solar production
• Distance to the grid
connection
• Tentative quotation from
utility and land owner
• Right of surface or land
purchase option.
• Easement rights (access
and connection)
• Check mortgages,
inheritance
• Official Cadastral Records
vs Land Owner Records
• Technical conditions.
• Quotation / milestones
• Who make it?
• Time schedule
• Secure the F.I.T.
• Environmental Impact
Assessment (EIA).
• Archaeological
• Construction License
• Agricultural Land
Conversion
• Forest Land
• Around 30-40 permits
(some N/A)
23

24. Time Schedule: Financial Dpt
Development:
PLAs
6-24 months
Construction: EPC
Operation & Maitenance
(O&M)
3-18 months
20 years
at least
Shovel /
Ready for
construction
Connection:
COD
Due Diligence
Financing
24

25. Due Diligence
Technical Legal
Financial:
Business
Plan
Insurance
Third party verification that allow the company the assessment of the risks involved
in the operation in order to satisfy stakeholders (shareholders, lenders, etc…)
Credibility of the
assumptions expressed and
the feasibility in terms of:
• Time
• Constrains
• suppliers chosen.
• Costs
• Legal bond that secure
that all rights to start the
construction, connect, and
exploit the project for at
least 20 years
• Credibility of the solar
production P75, P90.
• Financial terms (tenor,
leverage, spread, swap…)
• Deviations admitted and
bank requirements
According to IPP, EPC and
lenders requirements:
• Construction.
• Operation & Maintenance
25

26. Construction Phases
Engineering Procurement Construction
Engineering, Procurement and Construction (EPC) of Solar Photovoltaic Projects
must comply with legislations and national technical standards, provide enough
warranties to lenders and investors
Compliance with the project
constrains. Topography
survey after preliminary
design.
Executive design to be
submitted to the different
entities, technical advisors,
EPC and IPP.
Negotiation of:
• Technical data sheets
• Warranties
• Payment terms and
• Delivery terms.
Bottleneck: Downpayment
and construction period of
substations
Other suppliers max 16
weeks
Delays for:
• Bad engineering and
procurement
• Legal issues.
• Weather constrains
• Sudden Events
Keep in mind buffer
schedule
Utility – connection “queue”
very difficult to schedule
And after construction?
• Who will make the O&M?
• Warranty of the EPC.
• Take over from EPC to
O&M contractor
• 1-2 years.
26

27. PV: Photovoltaic
Materials Contractors: Manpower
Modules / Panels
Inverters /
Power Conditioners
Mounting System /
Structure
Transformation Center
Substation (if applicable)
String boxes, cable, etc…
Electrical Works
Civil Works
27

28. How it works: Utility & Residential Scale
28

29. 29

30. Operation
&Maintenance
(O&M)
30

31. O&M: Country Organigram
SOLARIG JAPAN
COUNTRY MANAGER
DIRECTOR
Administration Dept.
RRHH Dept.
Legal Dept.
Quality Dept.
STAFF
DEPARTMENTS
Tohoku Kanto Kansai Chugoku ChubuHokkaido Shikoku Kysushu
ZONE
MANEGER
Operations Manager
Customer
Service Dept.
Facility
Management Dept.
Monotoring
System Dept.
Operations Dept. System & Control Dept.
MAIN
DEPARTMENTS
TechnicianTechnician
TECHNICIAN
Technician Technician Technician Technician Technician Technician
31

32. O&M: Who verify the quality of the service
Some of the Technical Advisors
with whom we are working.
Banks
Technical Services
Technical Management
Production Control
Due Diligence
Due Diligence on
site
Ancillary
ServicesManagement of Security
and Communication
Services Facility Management
Analisys and reports
Insurance and contract
managenemt
Administrative and Accounting
Services
Legal Management
32

33. O&M Activities
Monitoring Control 24 hours/365 days
Corrective Maintenance
• Response time in less than “x” hours from failure
notification
• On site visit repair/checks.
• Close the incident report and introduce in the CMMS
Monthly Report
• Monthly production detail
• Tasks made on the plant
• Corrective actions carried out
• Including photograpies
Why is so important a periodical control of the plant?
• Fail detection in a beginner phase
• Reduction in the number of urgent interventions
• Improvement of the availability and productivity of the plant
• Manufacturers warranties and guarantees preservation.
33

34. O&M: Premium services
Production study
Modules Test( Thermography inspection and IV Test)
• Hot spots
• Snail tracks
• Etc,
Design mistakes study
Report including all the improvements to be done
Production improvement study
Intervention proposal (Quotation&Planning)
Improvement Works & Production comparative
IV Test Thermography inspection
34

35. Facility Assets Management
Administrative and Accounting Control
Legal Management
Insurance policy management
• Knowledge of the main risk factors of a PV Plant
• Incidents management
35

36. What´s next?
36

37. Global Energy Sources
Data from IEA World Energy Outlook 2011 37

38. Global CO2 Emissions
Is it relevant the
renewables contribution
to reduce this CO2
emissions?
38

39. CO2 Emissions 1990-2013
Mainly Global Financial Crisis Effects
39

40. CO2 Emissions Forecast 2035
Source: http://www.bp.com/en/global/corporate/press/bp-magazine/conversations/chief-economist-on-energy-outlook.html
Shall we do something more?
40

41. Main Barriers for the Renewables
Grid Connection
Constrains
Slow Storage
Development
No long term policy
across nations
Not clear commitment that all
members believe
Very high cost for the short
term & together with nuclear
dismantling
41

42. 42

43. http://www.bloomberg.com/news/videos/2015-05-01/here-s-why-tesla-is-building-batteries-for-your-home 43

44. Why home batteries are so “good”
• Reduce impact of
peak production &
peak consumption
• Make the
consumption more
predictable
• Better maintenance of
the grid connection
• Avoid shortages
44

45. Batteries Price Projections
• Many different technologies
competing.
• Different purposes.
• Many big players onboard
45

46. USA: Grid parity & Residential Potential
• Tax incentives
• Battery Outlook
• Economic Outlook & policy incentives
New Installations Solar Outlook
46

47. Facts: Small Relative Contribution
Not included all the
“saved energy” due
to batteries
47

48. For the debate
• Outlook in China, India, Japan, Australia
• The competitive advantage of solar & battery storage in the islands
• Divergencies in European National Policy.
• Role of the Nuclear Energy
• Relevance of the Smart Grid Technology and other disruptive innovations may arise
• Competitive approach: Feed in tariff policy vs tenders (South Africa and Germany examples)
48

49. Q&A
dvallejo@student.ie.edu
@DavidVallejo76
es.linkedin.com/in/dvallejom
Thanks!
Gracias
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