Despite the Financial and Economic Crisis, the Cell and Module Manufacturing Industries Are Continuing Their Expansion of Production Capacities
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Photovoltaics cEll, moDUlE aND thiN-film ProDUcErs The sun is rising in the East Despite the financial and economic crisis, the cell and module manufacturing industries are continuing their expansion of production capacities. Especially players from Asia but also participants in the emerging growth markets such as in the United States, in Greece or in France are establishing new production lines. olar power is hot – Maybe too hot!” Slogans the crystalline cell and module manufacturing indus- of this kind read and heard when the global try as well as in the thin-film sector. For the current is- Smodule market was still highly demand-driven sue, SUN & WIND ENERGY surveyed a number of 216 meanwhile belong to the past. Instead, the cell and cell manufacturers, 482 crystalline module makers module manufacturing industry has been following and 113 thin-film manufacturers on their production aggressive expansion plans in the last few years. One capacities. In view of the ongoing financial crisis, of the consequences has been that module supplies some of the manufacturers have been reluctant to are now growing while the demand has been plum- provide concrete figures on the development of their meting in key sales markets such as Spain where for- capacities. Therefore, the study essentially relies on merly attractive incentives were adjusted to the new data provided by a number of only 166 cell manufac- market situation. Solar manufacturers such as Chi- turers (as against 80 in 2008), 190 crystalline mod- nese Trina Solar Limited are now ambitious to deve- ule makers (as against 133 in 2008) and 72 thin-film lop new markets and reduce their dependencies on manufacturers (as against 58 in 2008). In the calcula- individual sales locations. “Trina has a diversified tion of the worldwide capacities, the companies that customer base of over 20 countries. We are well-po- did not provide data for 2009 were considered to sitioned to gain market shares in the existing and have maintained their capacities from 2008. While newly emerging markets as well as being less vulner- the world map for 2008 had arrived at capacities in able to the strong competition in any single market the range of 14.5 GW for the cell manufacturing in- such as in Germany”, says Penelope Koh, Senior dustry, the world map for 2009 now accounts for ca- Manager Investor Relations at Trina Solar. pacities in the range of 21.2 GW. Our survey revealed After the overview of production locations along a clear trend in the cell as well as in the module man- the downstream stages of the value-added chain (wa- ufacturing industry: among the Chinese manufactur- fer and silicon manufacturers) in the first part of our ers, a massive capacity expansion and higher market series, SUN & WIND ENERGY now turns towards the shares can be observed. In turn, the European manu- production locations and the latest developments in facturers are increasingly gaining a foothold in Asia 90 Sun & Wind Energy 10/2009 Headquarters of Q-Cells SE at the production location in Bitterfeld- Wolfen, Germany Photos (2): Q-Cells SE as a production location. Two examples are the new lected by SUN & WIND ENERGY, the capacity expan- production lines established by Norwegian REC Group sion could even be more drastic. Summed up, the and Germany-based Q-Cells SE in Singapore and Ma- 166 cell manufacturers that participated in the survey laysia, respectively. There exists an obvious reason suggest a picture in which the industry’s capacities for the development: low land, energy and labour will go up from 14.5 GW in 2008 to 21.2 GW in 2009. costs provide a drastic cost advantage for production The growth spurt is mostly taking place in Asia and in the Asian countries. Especially in the changing the future market in the United States where invest- market environment that continues to be character- ments for building up additional capacities come ized by oversupplies in the manufacturing industry, from domestic as well as foreign industry players that the reduction of production costs brings about a com- want to maintain their production in closer reach of petitive edge that influences the development of mar- the sales markets. According to the data provided by ket shares and profits alike. the manufacturers in our survey, the capacities in the United States could increase by 50 % from 997 MW in Cell capacities exceeding 20 GW 2008 to 1.5 GW in 2009. In Asia, the production ca- pacities increased by 42.7 % from 10.3 GW in 2008 According to US market researcher Displaysearch, the to 14.9 GW in 2009. Data by the Taiwanese Industrial worldwide solar cell production capacities are ex- Technology Research Institute suggests that there are pected to increase by 56 % and hit the 17 GW mark in currently about 30 cell manufacturers active on the 2009. “Although the PV module demand has been Taiwanese market alone. Today, already 30 % of the shrinking by 17 % in 2009, the volume of solar cell global solar cell supplies come from Asia where also manufacturing equipment ordered and installed over European manufacturers are establishing new pro- the past year has been high enough to allow for an in- duction locations. The list of Top 10 cell manufactur- crease of production capacities by 56 % this year”, ers reveals that the world market leaders are mean- says Charles Annis, Vice President of Manufacturing while located mainly in Asia. Only two manufacturers Research at Displaysearch. According to the data col- currently maintain their headquarters on other conti- Sun & Wind Energy 10/2009 91 Photovoltaics cEll, moDUlE aND thiN-film ProDUcErs process of slowing down their course of expansion. While a capacity of 710 MW had been planned for the year 2009, Sharp has meanwhile cut down the initial target and will now only realize 550 MW. Asia: expanding cost leadership for solar cells The dramatic differences in the costs factors around the world were demonstrated in a recent analysis by Goldman Sachs. According to the study, Germany- based Q-Cells with 0.45 €/W still produces on the most cost-effective basis among all of the European cell manufacturers. Seeing that even the European cost leader is beginning to locate its production in for- eign countries, however, other European manu- facturers such as Sunways – which according to Gold- man Sachs is looking at production costs of about 0.90 €/W – are put under mounting pressure. Even Controlling of the glass-foil though, for example, Germany-based Solon SE main- sandwich on the laminator nents. One of them is Germany-based Q-Cells SE that tains its focus on the relevant sales markets such as in Photos (2): SolarWorld AG ranks second on the list with a capacity of 910 MW in Germany, in Italy or in the United States, the company 2009 and the other one US-based SunPower Corpo- is expected to shift its production to countries with ration with a capacity of 574 MW in 2009. This year, higher cost advantage. “Cell production can and will Chinese cell and module manufacturer Suntech Power most likely move to low-cost locations as shipping Co. Ltd. is top of the list with a capacity hitting the costs only play a minor role”, says Therese Raatz, re- 1 GW mark. However, these volumes are far from sponsible for company communications at Solon SE. fixed. For example, Q-Cells that recently introduced short-time work now announces that the four oldest Surplus capacities: cost pressure of its six production lines in the production facility in for modules mounting Thalheim will be shut down due to the higher compe- tition. As a result, a capacity of 350 MW will be lost The debate around cost reductions has also turned along with 500 of the total 2,600 jobs. While the com- into a key element for strategic decisions in the down- pany’s capacities in Germany are losing competitive- stream module segment. Similar to solar cell produc- ness, the facility in Malaysia is about to be expanded. tion, today the building up of module capacities is However, instead of the initially planned 520 MW un- taking place mostly in Asia. Competition for Europe’s til the end of 2009, the expansion will concern a vol- industry has been growing in Taiwan and China but ume of only 150 MW. Other market participants such also in India. According to information by the compa- as former world market leader Sharp have been in a ny, China-based vertically integrated module maker Back end of Abound Solar man- ufacturing line in Longmont, Colorado Photo: Abound Solar 92 Sun & Wind Energy 10/2009 Photovoltaics cEll, moDUlE aND thiN-film ProDUcErs Central and Western Europe CSG Solar 13 Photovoltech 80/160 Solibro 90 | 25 Johanna Solar 30 | 30 Solland Solar Cells 150/150 Avancis 20/20 Malibu 35/40 Inventux 33 | 33/33 G24 Innovations 30 Solon 200/200 Day4Energy 50 GB Sol 5/8 Solarnova 10/25 Arinna 20 Aleo Solar 180/180 Pramac 30 RMCIP 3/12 Solon 60/60 Sharp Corporation 220 Sulfurcell 35 Global Solar Energy 35 | 35/37 Odersun 20/30 Telecom STV 1.5 Alfa Solar 20/20 Pvflex 0,5/25 Gällivar Sovello 120/180 | 100/180 First Solar 198/198 PhotoVoltaic 27 Scheuten Solar 35 Q-Cells 760 Conergy 250 | 250 Odersun 35 | 5/5 REC Scancell 225 Calyxo 60/60 | 16 ErSol Solar Energy 320 | 40/100 EPV Solar 30 Alfa Solar Photonic 100/150 Absolicon 14/14 Schüco Int. 5/5 Masdar PV 70 Algatec Solar 175 Asola 28/45 | 28/45 Sunfilm Solar Concen- Solar World 450 | 450 60 | 50-60/120 Arise Tech- trator 0.6/15 Sun- nologies 45 Schott Solar 320 | 35 ways Heckert Signet Antaris Solar 8/15 100 90/160 Solar 45 | 20 Alien Inspired Solarwatt Techno- Rec Solar 150 PV