Strategy challenges of Solar Energy Players-3

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This study looks at one of the emerging energy alternatives, solar energy.The gap between demand and supply of energy is huge, specially in developing countries like china and India.Most part of Europe is dependent on Russian gas for its winter supply of energy. Solar energy is one of the alternatives for energy in these countries, as fuel ( sunlight) is free and non polluting.
Here the focus is on three countries Germany, USA and India. The choice is based on the emergence of the different needs of these countries, which are in different stages of development of solar energy. This makes an interesting observance.

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Strategy challenges of Solar Energy Players-3

  1. 1. 
 





























Government
initiatives
and
Socio‐political
dimensions
 
 



















The
countries
discussed
in
this
study
are
at
different
phases
of
solar
energy
 development.
Germany
leads
the
nations
in
installations
of
solar
panels
(PV)
with
roughly
half
 the
world’s
installations
and
is
the
third
largest
producer
of
solar
cells
and
modules,
after
Japan
 and
China.

Government
and
people
are
enthusiastic
in
using
solar
energy
and
R
&
D
is
fuelling
 new
technologies
and
new
companies.

 
 























Government
and
citizens
of
USA
are
trying
and
testing
different
technologies
to
 suit
the
vast
requirement
of
energy.
USA
is
the
biggest
consumer
of
energy
in
the
world.
 Incentives
and
aggressive
programs
in
some
states
(especially
southern
states
like
Nevada,
 Arizona,
and
California)
are
creating
possibilities
for
various
technologies
to
get
tested
(recently
 Nevada
One
for
CSP
demonstration).
Venture
capital
of
around
USD
3.4
billion
was
invested
in
 2007
alone
in
solar
startups.
Government
is
under
pressure
by
interest
groups
like
the
solar
 industry,
green
groups
and
green
politicians
to
give
a
full
hearted
support.
Oil
industry
has
 created
two
pronged
strategy
of
lobbying
for
more
exploration
opportunities
in
restricted
areas
 (Alaska),
and
on
the
other
hand
creating
solar
divisions
within
the
companies
to
project
a
green
 image
and
to
take
advantage
of
the
growing
solar
industry.
 
 



























India
along
with
China
is
the
fastest
growing
consumer
of
energy
in
the
world.
 With
around
8
%
GDP
growth
for
last
decade
and
burgeoning
middle
class,
it
is
set
to
become
 one
of
the
largest
market
for
energy,
the
gap
between
supply
and
demand
is
huge,
and
the
 Indian
Government
having
realized
that
has
recently
pushed
for
solar
energy
programs.

The
 Indian
market
is
untapped,
its
solar
industry
is
nascent,
and
with
high
insolation
and
an
average
 250
days
of
sunlight
it
can
become
the
most
attractive
target
for
solar
products
in
coming
 decades.

 
 Germany:



 
 
Factors
driving
the
growth
of
German
Solar
Industry:
 
  Energy
crisis:
The
fossil
fuel
(
Oil)
energy
crises
of
1973‐74
and
1979‐80
with
severe
 economic
impacts
led
to
the
emergence
of
renewable
energy
sources
as
potential
risk
 reducers.  International
initiatives: Kyoto
protocol
and
commitment
of
Germany
to
reduce
 greenhouse
gases
by
21
%
from
1990
emissions
levels
within
2008‐2012.
 
  Promotion
of
Renewable
energy
technology:
Start
of
government
support
in
1974
for
 R&D
for
wind
turbine
development
with
initiative
like
GROWIAN
(wind
plant
project).
 This
became
a
reference
point
for
support
for
renewable
energy
program
including
solar
 energy
programs.


 
  Feed
in
tariff
programs:
Federal
Electricity
Feed
Law
(StrEG)
adopted
in
1991
became
 the
most
important
instrument
for
the
promotion
of
renewable
energy
in
Germany
 12
  2. 2. during
the
1990s.The
successor
to
StrEG
,
EEG
program,
aims
to
facilitate
a
doubling
of
 renewable
energy’s
1997
share
in
the
power
generation
fuel
mix
by
2010—to
a
 minimum
of
12.5%.
(see Appendix Government A).
[ Feed-in tariff is an indirect subsidy to the producers of solar energy by spreading the cost of production over all the consumers ] 
  Political
development:
The
election
of
Germany’s
Red‐Green
coalition
government
in
 1998
brought
with
it
additional
policies
and
legislation
promoting
the
growth
of
 renewable
energy.
For
example,
the
1999
Ecological
Tax
Reform
(ETR)
initially
increased
 the
taxes
on
motor
fuels,
fuel
oils,
and
natural
gas,
and
also
levied
an
electricity
tax
 across
all
sectors
 
 Policies: Germany
has
relied
on
a
combination
of
five
primary
policy
instruments
for
the
promotion
 of
renewable
energy: • Direct
investment
in
R&D;

 • Direct
subsidies;

 • Government‐sponsored
loans;

 • Tax
allowances;

 • Subsidies
for
operational
costs/feed‐in
tariffs.

 EEG
:
EEG

was
adopted
in
April
2000.
The
EEG
aims
to
facilitate
a
doubling
of
renewable
 energy’s
1997
share
in
the
power
generation
fuel
mix
by
2010—to
a
minimum
of
12.5%.
Unlike
 that
of
the
StrEG,
the
EEG’s
remuneration
system
is
not
based
on
average
utility
revenue
per
 kWh
sold,
but
rather
on
a
fixed,
regressive
feed‐in
tariff
for
renewable
sources.
Low‐cost
 renewable
energy
producers
are
compensated
at
lower
rates
than
higher‐cost
producers,
 providing
strong
incentives
for
the
development
and
operation
of
renewable
energy
 installations
on
lower‐quality
sites.
Also,
under
the
EEG,
grid
operators
are
obligated
to
 purchase
power
from
local
producers;
a
nation‐wide
equalization
scheme
has
been
 implemented
to
reduce
the
cost
differentials
paid
by
grid
operators
in
different
parts
of
the
 country
for
the
purchase
of
renewably‐generated
electricity.
Recent
amendments
for
2009
and
 onwards
has
been
passed
as
“sliding
scale
for
digression”
(see Appendix Government B for major European countries).

 



Consumer
preferences
  Increasing
efficiency,
hence
lower
cost
per
unit,
of
different
technologies
is
a
major
 attraction
for
switching
to
solar
energy.
In
addition
grid
parity
is
predicted
to
be
reached
 between
2012
to
2015
[
see
feed‐tariffs
appendix]
 
  Government’s
incentives
and
subsidies
are
push
factors
for
demand;
they
do
not
pull
 more
consumers
as
is
generally
thought
of.
So,
consumer’s
awareness
becomes
critical
for
 growth
of
the
industry.

 
 13
  3. 3.  The
high
level
of
public
awareness
over
greenhouse
effect
and
global
warming
is
 impacting
the
trend
of
usage
and
source
of
energy.
This
will
be
a
major
driver
of
growth
in
 renewable
energy
sector.

 
 USA:
 Factors
driving
the
growth
of
the
American
Solar
Industry:
  Soaring
Oil
costs:
The
prohibitive
cost
of
oil
(reaching
$4
/gallon)
in
recent
years
and
the
 import
bill
of
USA
are
the
push
factors
for
the
US
government
to
look
at
alternative
 sources
of
energy,
seriously.
Though
wind
and
solar
programs
and
research
started
way
 back
in
1960’s,
it
was
mainly
confined
to
space
application
and
demonstration
 technologies.
 
  Costly
alternative
fuels:
Bio‐fuel
has
been
an
option
but
the
concerns
about
ethanol
as
 fuel
(in
particular,
which
was
first
used
in
Brazil)
being
too
costly
in
terms
of
growing
 cost,
cost
of
land,
lost
nutrition
in
soil
(due
to
extensive
corn
farming)
and
socio‐ economic
cost
of
lost
opportunities
in
developing
countries
(with
less
land
area),
 feeding
USA’s
requirement
has
become
highly
controversial
and
has
forced
the
 government
to
look
at
wind
and
solar
energy
as
alternatives.
 Oil
from
bitumen,
tar
(Venezuela),
Shale
(propositioned
by
some
like
IHS’s
Daniel
Yergin)
is
not
 recoverable
practically.
Mr.Yergin
only
points
to
capacity
and
not
real
recoverable
oil.
 Additionally,
environmentalists
are
lobbying
against
exploration
of
oil
in
unexplored/virgin
 territories
(Alaska,
Antarctica)
and
also
from
sources
such
as
sand
and
tar
.Oil
from
coal
and
 clean
coal
technologies
are
in
laboratory
experiments,
unproven
for
production.  Solar
energy
incentives
and
programs: USA
federal
governments
and
states
 governments
(specially
six
southern
states)
have
incentives,
tax
breaks,
loans,
grants
 and
subsidies
for
solar
energy
installations
for
commercial
and
residential
purposes
(see
 appendix).
A
bill
has
been
introduced
in
US
congress
for
10
million
solar
roofs
by
2018.
 
  Political
pressure:
Al
Gore
and
many
other
politicians
have
started
a
campaign
for
 renewable
energy.
The
move
is
supported
by
the
renewable
energy
industry
and
 environmentally
conscious
public
(realizing
the
high
social
and
economic
cost
on
the
 nation,
not
to
mention
their
own
personal
woes).
The
credit
crunch
and
housing
crises
 have
furthered
the
clout
of
these
politicians.
 (see Appendix Government C for Programs and incentives ) 
 14
  4. 4. 
 







Consumer
preferences
  Rate
of
return
on
investment
and
no
fuel
requirement
the
driving
costs
for
general
 population
in
USA
(even
Massachusetts
where
average
sunshine
is
less
than
5
hours


 on
a
yearly
basis).
Especially
PV
module
with
25
years
of
guaranteed
service
is
a
major
 pull.

  Social
consciousness
and
“green”
image
[being
seen
as
“forward
thinking”
symbol]are

 major
attractions
for
consumers
but
these
have
a
long
way
to
go.
  Tight
government
regulations
and
fines
on
industries
are
forcing
industries
to
reduce
 their
carbon
emission
burden
on
environment
as
a
precautionary
measure.
In
the
long
 run,
the
industries
are
trying
to
reduce
their
fuel
bill
and
build
a
green
image
in
the
eyes
 of
their
employees
and
consumers.
It
is
not
merely
CSR.

 
 India
 India
Beckons:
Factors
driving
growth
for
solar
energy
in
India
  Government
Policy:

Recent
announcements
by
the
prime
minister
of
India
for
NAPCC
(
 national
action
plan
for
climate
change)
include
a
National
Solar
mission.
(See Appendix government D for details).
This
has
encouraged
the
industries
to
invest
in
solar
energy.
 
  Insolation:
High
insolation
(sunlight’s
intensity)
on
majority
of
India’s
land,
its
400
 million
middle
class
and
another
500
million
people
in
rural
areas
make
India
as
an
 attractive
solar
investment
destination. With
an
average
of
250
days
of
sunlight
and
an
 intensity
of
4
to
7
kWh/m2
it
is
one
of
ideal
locations
suited
for
solar
energy
growth.
 
  High
Oil
import
bill:
India
is
dependent
on
other
countries
for
oil.
Its
large
population
 and
increasing
GDP
per
capita
have
further
contributed
to
its
high
consumption
of
oil.
 This
year
it
cost
6%
GDP
of
India,
to
import
the
required
oil
(around
73
Billion
$
 estimated
for
2007‐08
Fiscal
year1).

 
  Cheap
human
resources
and
technical
talent:
Talent
and
cheap
labor
make
India
a
very
 attractive
destination
for
solar
energy.
 15
  5. 5. Following
recent
NAPCC
announcements,
big
industrial
houses
like
TATA
Power,
Reliance
 Industries,
and
ADAG
(Anil
Dhirubhai
Am200abni
Group)
have
announced
investments
 worth
USD
6
billion.

 


 
Consumer
Preferences
  Rural
citizens
with
little
or
no
electricity
and
farmers
could
be
the
largest
segment
to
 be
tapped
for
off‐grid
applications.
Necessities
like
powering
the
water
pump,
light
 bulbs,
televisions
can
generate
huge
demand

  Solar
water
heating
has
the
potential
to
pull
in
urban
populace’s
demand,
which
can
 become
a
starting
point
for
usage
of
solar
technologies
for
house
electricity
 consumption
  Industries
though
aware
don’t
want
to
invest
in
green
technologies
as
there
is
no
 social
pressure
now.
But
the
awareness
of
public
and
media
is
increasing,
which
can
 be
a
push
factor
for
industries
to
adopt
solar
technology.
Brand
image
is
another
 factor
which
will
force
the
industries
to
rethink
their
strategy

  Government
itself
is
very
big
consumer
and
by
adopting
the
technology
itself,
it
can
 pull
the
general
consumers
and
push
the
industries
(indirectly
by
creating
pressure)
 in
adopting
the
solar
technology.
 
 





























































Conclusion
 





















Solar
energy
industry
is
a
nascent
industry
with
great
potential
to
grow.
The
growth
 can
be
propelled
by
initiatives
and
programs
by
governments,
which
can
provide
both
pull
and
 push
factors
for
demand.
Feed‐in
tariffs,
green
image
and
subsidies
can
drive
the
growth
in
 initial
stages
but
long
term
sustainable
growth
is
possible
only
with
mainstream
acceptance
of
 the
technology.
Acceptance
will
come
from
sustained
government
effort
(such
as
tax
 breaks/holidays),
economical
cost
for
end
users,
ease
of
use
and
awareness
of
ecological
cost
 amongst
citizens
and
industries.
Quota
allotment
and
aggressive
push
by
the
government
can
 work
for
the
short
term
(as
in
Spain)
but
long
term
growth
is
possible
only
by
adoption
by
 citizens
(Germany).





 16
  6. 6. Issues
and
Challenges
for
Solar
energy
Industry
and
Players

 
 












1.

Cost:

Grid
parity
or
cost
of
solar
energy
equivalent
to
cost
of
current
energy
 resources
is
a
major
challenge.
In
august
2008,
solar
electricity
cost
was
around
21.3
cents
Kwh
 1 ,
which
is
5
times
the
normal
price
of
electricity
generated
by
fossil
fuels.

Even
power
 generated
through
CSP
(proven)
and
CPV
(unproven
in
the
field)
technologies
is
above8
 cents/Kwh.
This
makes
it
unacceptable
for
most
of
the
citizens
of
developing
countries
like
India
 and
China,
where
most
of
the
demand
in
future
would
be
generated
(India
and
China
combined
 energy
needs
would
grow
by
40
%
by
2030,
IEA

Energy
Outlook
2007).
German
citizens
and
 industry
would
feel
the
pinch
as
the
subsidies
and
feed‐in
tariff
are
reduced
and
cost
will
 increase.
USA
will
remain
the
2nd
largest
consumer
of
energy
in
2030.
So
it
becomes
imperative
 for
cost
of
solar
energy
to
be
equivalent
to
cost
of
energy
generated
by
fossil
fuels.
Economies
 of
scale
(increased
usage)
and
advancement
in
technology
can
achieve
that
objective.
Balance
of
 system
components
(BOS‐
components
which
are
not
PV
modules
or
Turbine/transmission
 system
in
CSP/CPV)
cost
between
20‐70
%
depending
on
technology
and
country.
Efficiency
and
 economical
integration
of
components
like
inverters,
batteries
become
crucial.
 
 











1.1
Economies
of
Scale:
This
is
a
complex
issue
as
it’s
inter‐twined
with
cost
of
the
system
 or
electricity
generated.
Increasing
of
the
scale
can
reduce
the
cost
and
reducing
of
the
cost
will
 increase
the
usage.
It
is
a
vicious
circle.
 
 










1.2
Dependency
on
Government
incentives:

As
it
is
a
new
industry
and
it
started
growing
 in
response
to
increasing
cost
of
oil,
more
greenhouse
gas
emissions
and
climate
change,
the
 government
support
is
sustaining
the
industry
now.
If
the
cost
of
solar
energy
does
not
decrease
 or
cost
of
the
oil
goes
down,
the
incentive
for
government
and
public
support
may
go
down,
 leading
to
limiting
the
growth
of
the
industry
 
 











2.
Sunshine
and
Insolation:
According
to
IEA
area
between
30˚
North
and
South
of
 equator,
is
the
best
for
generation
of
solar
energy.
Insolation
or
amount
and
intensity
of
 sunlight
vary
across
the
globe
and
during
seasons,
Local
conditions
also
are
a
major
influence
 factor.
So
each
country
and
area
needs
to
adopt
different
technologies
for
generation
of
 technology.
Areas
beyond
60˚
N
&
S
have
to
depend
on
summer
time
for
generation
of
 electricity.
 




 










3.
Installation:
Installation
and
integration
with
buildings,
structures
remain
a
major
 challenge.
Technology
cannot
be
fully
combined
without
sorting
out
issues
like
aesthetics,
area,
 degradation
of
cells/systems
over
time,
trained
personnel.

 
 











4.
Integration
with
power
grid:
Integration
with
power
grid
is
one
of
the
challenges
of
PV
 or
upcoming
technologies
in
rooftops/residential
systems.
This
is
because
when
power
is
 withdrawn
or
fed
into
the
grid
system
frequency
of
the
grid
fluctuates,
leading
to
destabilization
 of
the
system.
 
 










5.
Unproven
Technology:
Many
technologies
claimed
as
successful
in
lab
has
not
yet
been
 proven
in
the
field.
The
results
in
the
filed
can
be
different
or
not
as
positive
as
in
lab.
 Integration
with
other
technologies
and
grid
supply
also
can
be
challenges
to
the
industry.
 1 www.solarbuzz.com, august 2008 17
  7. 7. 





6.
Weak
supply
chain:
Weak
supply
chain
(especially
in
CSP)
due
to
cyclical
activity
 development
has
led
to
dwindling
of
equipment
vendors.

To
meet
the
projected
demand,
 manufacturing
capacity
has
to
be
expanded
(for
CSP).
 
 






7.
Lack
of
adequate
land
close
to
load
centers:
Lack
of
land
for
installation
of
solar
farms
 projects
(especially
in
countries
like
India,
where
land
is
costly
and
unavailable)
close
to
 consumption/population
centers
add
to
the
cost
of
electricity.
This
is
a
major
constraint
in
 development
of
solar
farms,
which
has
the
potential
to
reach
grid
parity.
 
 







8.

Lack
of
spending
power
and
Financing
options
in
developing
countries
is
an
impediment
 to
the
growth
of
the
solar
industry
in
countries
like
India
and
china.


 
 















 

 
 










 
 















 
 
 
 18
  8. 8. Strategy
Challenges
for
Solar
Energy
Players
 

 












“Global
energy
system
is
on
increasingly
an
increasingly
unsustainable
path.
Challenge
 for
all
countries
is
to
achieve
transition
to
a
more
secure,
low
carbon
energy
system.”
–World
 Energy
Outlook
2007,
IEA.
Different
scenarios
predict
world’s
installed
solar
energy
growth
to
 35Gw
to
40
Gigawatt
by
2015.

 
 
















In
2007,
world
installed
3.5
Giga
watt
of
solar
energy
,
47
%
of
installation
was
in
 Germany,
Spain
23%,
USA
10%
and
rest
of
the
world
20%.
India’s
total
growth
was
a
meager
20
 Mw
out
of
total
generation
of
close
to
100,000Mw.
Supply
of
PV
systems
in
the
world
especially
 polysilicon
PV
will
be
significantly
more
than
the
expected
demand
for
three
or
four
years
 because
of
three
factors.

Huge
capacity
addition
in
manufacture
of
PV
quality
silicon
(in
 response
to
earlier
shortage)
in
2009,
drop
in
growth
rate
of
Spain’s
demand
due
to
end
of
 government’s
enforced
PV
energy
program
(in
September
2008)
and
uncertainty
in
US
 government’s
solar
energy
policies.

 
 














The
above
information
is
not
a
cause
of
concern
but
a
cause
for
optimism
for
solar
 energy
industry
as
medium
term
opportunities
are
huge.
Economic,
social
and
ecological
 consequences
of
past
energy
usage
pattern
would
force
the
countries
and
their
populace
to
 change
their
habits
thus
even
impacting
big
energy
players
(companies
and
consortiums
like
 OECD).
So
what
could
be
the
strategy
challenges
for
present
and
future
solar
energy
players
in
 this
age
of
rapid
change
and
uncertainties?



 
 





Countries


 
 








Germany:
The
growth
rate
of
nearly
25%
is
not
sustainable
after
3‐5
years
due
to
two
 factors.
As
Germany
has
been
a
leader
the
huge
growth
in
solar
installation
means
that
the
 demand
will
not
be
at
the
same
level
as
previously.
25‐30%
of
demand
by
2015
would
be
 generated
by
Germany.




 
 







USA:
The
uncertainties
of
government
policies
in
USA
have
been
a
dampener
in
the
growth
 of
different
solar
technologies
and
growth
of
demand.
Yet,
some
political
initiatives
like
Million
 solar
roofs
“program
creates
long
term
optimism.
The
increased
insecurity
of
USA
due
to
 changing
geopolitics
of
Oil
would
lead
it
to
support
energy
self
reliant
policies.
Different
 intensities
of
sunlight
generate
possibilities
of
deployment
of
different
technologies,
thus
 increasing
power
generating
potential.
Rising
concern
over
CO2
emissions
is
another
push
factor
 for
development
of
demand
for
clean
energy.

10‐15
%
share
of
potential
demand
would
come
 from
USA
by
2015.






 
 







India:
The
country’s
recent
program
of
1
Gig
watt/year
installation
shows
that
the
second
 largest
populated
country
is
accepting
the
fact
that
its
own
resources
of
coal
and
hydro
power
is
 insufficient
for
its
power
needs,
where
there
is
a
demand
supply
gap
of
14%
at
peak
loads.
 Secondly,
amount
of
insolation
and
“sun‐days”
(average
270
days)
are
big
natural
drivers
for
 growth
of
technologies
like
CPV,
CSP
and
PV.

Rising
number
of
litigations
over
hydro
power
 projects,
low
quality
of
coal
high,
air
pollution,
deforestation
and
increasing
oil
dependency
of
 the
country
are
push
factors
for
generation
of
clean
energy.
Off
grid
usage
in
water
pumps
for
 agriculture,
rural
electrification;
demand
for
water
heating
in
urban
areas
are
pull
factors
in
 19
  9. 9. India.
India
has
the
potential
to
consume
around
7‐10
%
of
demand
if
it
starts
fulfilling
its
target
 of
installing
1
Gigawatt
of
solar
energy,
by
2015.

 
 





45%
of
demand
would
come
from
the
rest
of
the
world;
so
which
would
be
the
other
 potential
consumers
of
solar
energy?
China
with
its
huge
energy
demand,
France
with
its
shift

 towards
renewable
and
moving
away
from
the
last
coal‐based
plants
,
Greece
and
Italy
(
wsj
 august
2008)2
due
to
abundant
sunlight,
Australia
with
opposite
seasons
as
northern
 hemisphere
and
good
amount
of
sunlight
(
specially
in
south
and
west),
Japan
with
commitment
 to
greenhouse
gases
would
be
other
major
consumers.


 
 















































Strategy
Scenarios
of
Players

 
 




Due
to
rapidly
rising
demand,
different
usages,
and
uncertainties
arising
due
to
government
 support
and
high
cost,
solar
energy
players
have
to
adopt
strategies
supporting
their
long
term
 and
short
term
goals.
Grid
parity
will
remain
the
most
important
concern
for
any
technology.
 Now
we
look
at
strategy
scenarios
of
three
broad
segments
of
solar
technology.


 
 




































Mono
and
Poly
silicon
photovoltaic
players





 
 





Silicon
technologies
will
remain
the
biggest
players
until
2015,
though
their
share
would
 decline
due
to
advancements
in
other
technologies
(like
CSP)
and
cost
reduction.
 
 1) Geographical
expansion‐‐‐‐
Cost
of
PV
modules
have
also
been
high
due
to
low
economies
 of
scale.
Geographical
expansion
into
new
markets
like
Australia,
India,
and
Greece
etc
 would
allow
low
cost
and
price
and
thus
further
penetration.


 
 2) Alliances
across
the
value
chain‐‐
Alliances
of
companies
across
the
value
chain
(from
 silicon
ingots
to
wafers
to
systems
to
installations
and
services)
would
build
a
strong
 supply
chain
and
create
stability
in
the
industry.
 
 3) Consolidation


‐‐‐
Consolidation
of
the
industry
with
1)
mergers
and
acquisitions
2)
 melting
away
of
different
technologies
and
companies
due
to
obsolescence
and
low
 economies
of
scale,
would
benefit
the
mono
and
poly
silicon
manufacturers.
 
 4) Integration
with
players
in
conventional
and
renewable
energy
segments:
Combination
of
 solar
technology
with
other
renewable
energy
segment
(like
wind)
or/and
conventional
 energy
companies
like
coal
and
hydropower
would
result
in
more
acceptability
and
 growth.

 
 5) Creating
new
opportunities
with
different
industries:
Powering
industries
like
telecom
 and
sea
water
purification
could
create
applications
in
a
wider
dimension
leading
to
 spread,
image
and
growth.



 
 6) Taking
different
solar
technologies
in
their
fold:
Big
silicon
PV
player
could
think
of
taking
 different
technologies
into
the
fold
of
the
company
to
cater
to
different
geographies
and
 usages.
 
 































































 20
  10. 10. 





























































Thin
Film
players


 


















 















Besides
geographic
expansion
and
alliances
with
conventional
and
non
conventional
 energy
players
thin
film
could
consider
any
or
combination
of
strategies:

















 
 1) Target
segment
focus:
Targeting
a
narrow
segment
(like
commercial
buildings
or
less
 intense
sunlight
area
of
the
world)
could
give
the
thin
film
players
two
advantages;
a)
 Avoid
direct
competition
with
established
technologies
like
silicon
PV,
b)
Establishing
 the
industry
in
a

new
field
.
 
 2) Creating
new
products:
Thin
films
have
flexibility,
this
property
can
be
used
to
create
 new
product
segment
such
as
low
power
devices,
military
applications
and
integration
 with
mode
of
transportation
such
as
ships,
planes
and
automobiles.
 
 3) Competing
with
Silicon
based
players:
The
third
scenario
could
be
direct
competition
 with
silicon
players
in
the
big
domains
like
residential
and
commercial
space.
Specially,
 commercial
users
would
like
to
have
more
energy
(Kwh)
rather
than
high
cost
of
 installation
($/watt).





 
 
 




















Concentrated
solar
power
(CSP)
and
Concentrated
Photovoltaic
(CPV)

 
 












These
technologies
are
centralized
power
productions
oriented
and
can
be
integrated
 easily
with
current
power
production
elements
of
the
system
such
as
turbine
(Rankine
cycle,
 such
as
Stirling
dishes
for
CSP)
and
existing
power
grid.
 
 1) Power
purchase
agreements:
One
of
reasons
of
high
cost
of
CSP
and
CPV
technologies
 are
their
huge
project
development
costs
and
a
few
installations,
leading
to
high
 components
cost.
When
these
technologies
would
be
implemented
on
a
larger
scale,
 they
have
the
potential
to
produce
electricity
at
grid
parity.
Long
term
power
purchase
 agreements
would
propel
these
technologies
to
be
cost
effective
and
also
attract
more
 financing
options.
 
 2) High
solar
insolation
areas
as
markets:
As
CSP
and
CPV
depend
upon
high
intensity
of
 sunlight,
the
companies
should
concentrate
on
geographies
which
have
high
insolation
 and
have
large
areas
for
installation.
In
future
it
can
be
built
on
land
earlier
used
by
 fossil
fuel
power
plants.

 
 



























































Emerging
Technologies
 
 











Emerging
technologies
like
Nanofilms
(
Nanosolar)
,
Organic
PV
(
Konarka

Tech),
XCPV,
 Micro
CSP
have
the
potential
to
create
new
standards
in
the
field.

 
 1) Applications
and
integration:
The
main
strategy
of
new
emerging
players
would
be
to
 play
on
different
applications
other
than
electricity
generation
on
large
scale.
 Organic
PV
or
nanofims
cannot
generate
large
scale
electricity
like
solar
farms.
So
 applications
like
electricity
windows,
façade,
etc
and
integration
with
the
structures
 or
substrates
become
critical
factors.
 21
  11. 11. 
 2) Micro
CSP
and
X‐CPV:
Low
Cost
and
integration
with
the
existing
power
generating
 system
would
be
major
factors
in
their
acceptance.
It
may
take
4‐5
years
to
develop
 these
technologies
to
be
compatible
with
the
existing
infrastructure.




 
 





































































Utilities























 

 



















Utilities
have
the
potential
to
be
partners
for
big
scale
power
(solar
farms)
generating
 players
and
technology
(like
CSP,
PV
and
CPV).


 

 




















Utilities
by
the
virtue
of
their
existing
infrastructure
could
be
very
active
partners
 with
Silicon
PV
and
Thin
film
players,
by
entering
into
installation
and
integration
and
utilizing
 the
relationship
with
the
end
users.










 
 





 Players
should
also
focus
on
lowering
barriers
of
entry
through
1)
development
and
 training
of
future
solar
energy
professionals
2)
develop
and
disseminate
standard
codes
 and
best
practices
to
facilitate
installation
of
solar
technologies.
 
 Partnering
with
industries
and
cities
to
promote
installation
could
be
a
potent
strategy,
 which
would
also
increase
visibility
and
economies
of
scale
of
different
technologies.
 
 




























































Conclusion
 
 Strategy
challenges
in
the
rapidly
evolving
market
and
unclear
government
support
makes
 solar
industry
very
uncertain
for
at
least
4‐5
years
but
also
poses
a
great
expansion
 opportunity,
specially
if
the
cost
is
brought
down
to
conventional
fuels
and
methods
of
 production.
Emerging
technologies
such
as
organic
PV,
X‐CPV
and
Micro
CSP
have
the
 potential
to
transform
the
whole
energy
game
with
low
cost,
flexible
design
and
ease
of
 use.
Installation
and
ruggedness
of
the
systems
would
be
always
critical
factors
in
growth
 of
the
solar
energy
industry.
Public
awareness
and
high
carbon
emissions
are
pushing
the
 government
and
industries
to
look
at
alternatives
but
low
cost
of
oil
(comparatively
with
 solar
energy,
despite
the
recent
rise
to
unprecedented
level)
easy
availability,
established
 industries
centered
on
the
production
of
fossil
based
fuel
(like
power
plants,
refineries),
 high
investments
add
to
inertia
against
new
sources
of
energy.
 
 Next
4‐5
years
would
be
very
crucial
for
solar
energy
industry
as
it
would
decide
what
path
 it
choose
to
be
an
established
source
of
energy
for
the
world
along
with
wind
energy
(
not
 in
competition
with).
 Right
now
the
question
is
wide
open
and
we
have
to
wait
and
watch
the
one
of
the
 greatest
turns
of
history
after
information
revolution.
The
energy
revolution!













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