The World Games Stadium’s solar-panel roofing
In today’s economic environment where almost all products are made in China, it is a bit surprising to learn that some Chinese companies – at least those engaged in the photovoltaic (PV) industry – rely on Taiwanese firms to fulfil their obligation to customers. Taiwan, of course, designates itself as Chinese Taipei in the field of international relations and sporting events; so it’s not as if it’s totally unChina. Still, it’s not often that one hears of some Chinese companies relying on Taiwanese firms for production.
But then again, think of the quality of products that would churn out from such collaboration. “Our companies here produce PV devices of high-quality,” says Wang Meng-chieh, an industrial analyst at Taiwan’s Industrial Technology Research Institute (ITRI). He adds that Chinese companies that cannot meet orders from Western clients on time ask for help from their counterparts in Taiwan, which has a strong industry related to PV fabrication like semiconductor, LCD panel, LED and CD-ROM.
So here is the scenario: when Chinese companies gain massive orders from the West, their Taiwanese partners provide sufficient upstream materials, then produce high-quality PV devices, which are then shipped to customers.
BIG MONEY
Yes, it’s the US, Canada and Europe where the big money for PV companies in Taiwan and China will come from, although the Southeast Asian market is also growing “The infrastructures in Southeast Asian countries are now established, so PV companies must look for partners there,” says Dr PH Chang, CEO of Motech Industries, which manufactures high-quality mono and multi-crystalline silicon solar cells in Taiwan.
In an interview on the sidelines of the recent PV conference and exhibition in Taipei, Chang says that China, India and the Middle East will be the biggest PV markets amongst the emerging economies for this year. He stresses that the global PV industry is assured of ample supply of quality products and talent to meet growing demand.
Accounting for 49% of worldwide production, China and Taiwan have been the biggest producers of PV cells over the last five years. Global production hit 11.5GW in 2009, a 56% rise from the previous year, according to the European Commission. In Taiwan alone, PV cells production was seen to reach 3GW in 2010 – which would make Taiwan the world’s second-largest solar-cell manufacturer.
BEST SOLUTION
At a conference during the PV Taiwan event in Taipei
And if favourable policies and lower costs are in place, the global market trend for PV installation can hit between 18GW and 21GW by 2012 from 15-17GW and 5.9GW in 2009, says the president and chief operating officer of Gintech Energy, Dr Pan Wen-whe. He describes solar power as the “best solution for clean and abundant energy”. He adds, “There is no doubt that the PV industry will grow.”
Other manufacturers obviously share his sentiment, as they chart expansion plans for the oncoming two. And they’re not just talking about monetary investments. They will push for innovations and business-friendly regulations, for instance, saying that the industry will also be driven by sound government policies and reduced prices.
“High-calibre employees, low production costs and higher productivity will sustain PV growth,” Pan says. “And as the sun never sleeps, the solar energy will grow accordingly!” He stresses, however, the need for companies to share expertise and resources, on order to ride the challenges ahead. “We’ll try to seek more alliances, as we’re doing quite well with this strategy,” he emphasises.
The sharing of resources amongst manufacturers could be in the form of investors concentrating on certain aspects of the supply chain, in order to lower costs. “Low-cost is the buzzword of this industry,” Chang says.
INNOVATION CYCLE
Solar panels at Kaohsiung’s energy farm.
And doing so requires innovation, whose cycle will become shorter, as advanced equipment is the key driver in reducing costs in PV – perhaps by 15% in the near future, says Dieter Manz, CEO of the German firm Manz Automation. “If it’s cheap enough, solar will be utilised,” he notes. “And if there is a massive price reduction, PV may reach grid parity in large parts of the world.”
Manz, Chang and Pan are amongst the movers and shakers in the PV industry who attended the PV Taiwan Forum, held at the Taipei World Trade Centre on October 26 to 28. Put up by the Taiwan External Trade Development Council, or TAITRA, and event organiser SEMI Taiwan, the event comprising a conference and an exhibition attracted at least 150 companies and 10,000 visitors from all over the world.
The vice-president for the Solar Business Group of AU Optronics (AUO), James CP Chen, says his company is interested in penetrating the Middle East market. AUO officials have been talking with companies in Abu Dhabi for possible joint ventures on PV cell technology and production, he reveals. He stresses that AUO is busy figuring out a different PV technology, like thin-film, which would be suitable for the Middle East environment.
AUO, Chen says, is upgrading its factories in Slovakia and Poland, as the European market is very important. It also has set up regional teams in Europe, the US and China. He adds that the company has a strong supply chain in China, where it opened a manufacturing site last October. The company, whose annual capex is $3 billion, puts great emphasis on innovation, spending 10-15% of its total revenue on R&D and equipment.
STRONG PLAYERS
Foreign journalists arrive at the stadium, whose concrete arches encased in overhanging lattice stanchions with white steel pipes are strung together to support the stadium’s roof
Conscious of the fact that only the strong players with outstanding R&D would rake in tremendous profits amid the fast-growing PV industry, other companies are also preparing to meet the growing demand for various products, such as polysilicon, thin-film, high-concentration PV (HCPV) and organic PV, amongst others. “There’s a lot of room for future investment,” Manz says. “The development has just started.”
The Neo Solar Power, for instance, is increasing its capacity to 1.7GW at the end of 2012 from 1.2GW this year, although the company has the facility in Taiwan to produce 3.4GW of solar cells in the long term. The company focuses on delivering high-efficiency PV products, such as the 6” multi-crystalline cell. It sees its production capacity increasing by 17.4% this year from 16.8% in 2010.
“We believe in specialisation,” say Andy Shen, Senior Vice-President for Worldwide Sales and Marketing at Neo Solar Power. “Always focus in one area where you are good at.” And his company is doing just that, coupled with moves to bring down costs, embrace the latest technology, churn out quality products and improve customer service. “We’re looking for long-term relationships with partners and clients, as Taiwan is becoming a very important site for solar energy activities,” he stresses.
Already, Taiwan is home to world’s largest solar energy-powered sport stadium. The World Games Stadium (or The National Stadium), in Kaohsiung, Taiwan’s second-largest city with a population of 2.8 million, was the main venue for the 2009 World Games. Evoking different associations – a flying dragon, a snake suffocating its prey, a watercourse – in viewers, the stadium seems to change shape constantly to an approaching viewer. It has curved concrete arches that are strung together, resembling the spinal vertebrae of a primeval animal, and overhanging lattice stanchions with white steel pipes around them that support the roof.
What is so special about the stadium, however, lies in its capacity to produce its own electricity, as 68% of its roof is covered by silicon-based solar panels; this translates to 8,844 PV modules that generate 1.1 million kWh per annum. The PV panels are spread over 13,000 square metres, or two-thirds of the large, undulating roof, which on a cloudless day can provide 80% of the electricity needed during a sporting event in the stadium.
Journalists checking out a replica of The World Games Stadium
Taiwan is also home to Asia’s largest HCPV power plant, which produces over 100MW of renewable power per annum. Featuring 141 solar panels with solar tracker technology, the plant was established by the Institute of Nuclear Energy Research, a part of the Atomic Energy Council.
Dr Chen Meng-chu, a researcher for the HCPV R&D Project, also in Kaohsiung County, said the plant, which started operating in December 2009, can reduce between 650 tonnes and 700 tonnes of carbon emissions compared with a coal power plant, or 1,000 tonnes lower than a fuel power plant.
Whilst the power generated by the plant costs $8 to produce compared to traditional solar power plants, which cost around $3, Chen says the investment will pay off in the long run, with large-scale development and commercialisation.
Having The National Stadium and the HCPV plant in Kaohsiung, which is blessed with more than 300 days of sunlight each year, perhaps nobody would argue with Shen that Taiwan is, indeed, becoming a major producer of solar energy.
