BISOL Group: Photovoltaic markets in South East Europe

PV MARKETS IN SE EUROPE – SLOVENIA & OTHER EX-YU STATES

PV Power Plants – EU 2012Solarpraxis

Dag Kralj, MBA – Member of the Board, BISOL GroupVienna, March 29 2012

• Based near Celje, Slovenia• Founded in 2006• Core business production of PV (c-Si, pc-Si) modules,

selectively also turn-key PV PP (25 MWp) projects and own PV PP investments (€ 40 mio)

BISOL GROUP – KEY FACTS

• Current annual capacity 120 MWp, in process of increasing to 200 MWp by H2 2012

• 80% revenues generated from exports (offices in Germany, Italy, France, Belgium and UK)

• Top 5 in Photon tests in last 2+ years• 2011 revenues exceeding € 80 mio,

EBIT in mid-teens (in € mio)

BISOL GROUP – KEY FACTS

AVERAGE ENERGY YIELD 1.050 kWh / kWp

• FiTs introduced in mid-2009• Changed 3 times since (2010, 2011, H1 2012)• FiT period 15 years• Current (H1 2012) valid:

• H2 2012

SLOVENIAN FiTs – KEY FACTS

(€ / kWh) < 50 kWp 50 kWp – 1 MWp

roof € 0,291 € 0,266

ground € 0,273 € 0,252

(€ / kWh) < 50 kWp 50 kWp – 1 MWp

roof € 0,249 € 0,228

ground € 0,234 € 0,216

• Mostly roof installations (80%+), sizes 50 kWp – 1 MWp• Overall size (in EU terms) not that impressive, yet per capita (~ 50

Wp) in Top 10 in EU (Germany 300+, Italy 200+, Belgium 140 – but e.g. Greece 50, Austria 21, UK 12)

SLO PV – SHORT HISTORY OF STEADY GROWTH

Installed capacity (in MWp)

# of PV installations

up to 2009 9,0 251

2010 36,0 578

2011* ~ 50,0 ~ 650

Total ~ 95,0 ~ 1.500

* Official & final 2011 data not yet available, presented figures are an estimation

• Biannual FiT changes (decreased seasonality)• Future FiT reductions depending on installed capacity• Government long-term commitment to PV (55 MWp annual goal until

2020)• Clear preference for roof installations:

- No building permits needed for roof installations below 1 MWp, no annual quota

- Modest annual quota for ground installations (5 MWp)• Sustainable support mechanisms – transparent process of RES funding

collection and its disbursement• Streamlined administrative procedures, guaranteed grid connection

processes

SLOVENIA – GOOD EXAMPLES

• Inherent conflict of interest of distributors / grid operators:- Connection for own consumption difficult- Distributors / grid operators also turnkey providers (unfair

competition)• Discrimination against smallest / residential installations (below 20

kWp)- FiT same for 0 – 50 kWp class- Fixed administrative costs the same for small as well as big

installations• Integrated installations not carrying any bonus anymore• Lengthy procedure (3 – 6 months) from grid connection to FiT

contract• All ground installations treated same (no provision for e.g.

degraded land)

SLOVENIA – NOT SO GOOD EXAMPLES

• Currently, PV is still in the domain of environmentally conscious and (relatively) rich countries

• And while sun generally increases when (in Europe) moving South, both of the above (unfortunately) do not…

(OTHER) EX-YU STATES

SUN IS HIGH…

• Most Ex-Yu countries have decent regulatory frameworks

• OK / excellent FiTs• Yet are generally in not-too-rosy

financial position and use (actively or passively) extremely complicated / not defined administrative procedures as an excuse for lull

…YET PURSE IS DRY!

• While there is no direct (short term) pressure from EU for PV to develop, EU proximity serves as an indication of:

- economic standard- legal / regulatory standards- financial / investment environment

and bodes well (also) for PV

• Slovenia: EU member since 2004, adopted € in 2007• Croatia: to join EU in July 2013• FYRO Macedonia: EU candidate since 2005• Serbia: EU candidate since March 2012• Bosnia & Herzegovina: planning to submit application by mid 2012

EU STATUS AS PROXY OF PV DEVELOPMENT

CROATIA

FiT (€ / kWh) < 10 kWp 10 kWp – 30 kWp > 30 kWp

2007 € 0,449 € 0,396 € 0,278

2008 € 0,475 € 0,419 € 0,294

2009 € 0,489 € 0,432 € 0,302

2010 € 0,498 € 0,440 € 0,308

2011 € 0,507 € 0,448 € 0,313

• FiT period 12 years• PV PP state quota 1 MWp installed power• So far 20 PV PPs built (and received FiT), total installed power

400 kWp; several PV PPs with total power > 1 MWp in the process of connection

• Few local module producers of small / medium size operating (!)

• Strong indications from new (12/2011) government to support PV through (significantly) increasing state quota and streamlining admin. procedures

* All FiTs calculated at current EUR / HRK exchange rate

< 10 kWp 10 – 30 kWp 30 – 150 kWp 150 k – 1 MWp 1 – 10 MWp

€ 0,470 € 0,414 € 0,376 € 0,263 € 0,238

BOSNIA & HERZEGOVINA

Federation

• So far only draft law• FiT period 12 years• RES funds being collected since May 2011• No PV PP state quota• No FiTs yet granted• So far permits to build 3 PV PPs have been granted with total

(planned) power of 3,64 MWp

BOSNIA & HERZEGOVINA

Republic of Srpska

• FiT period 15 years• RES funds already being collected• PV PP state quota 1 GWh electricity produced (in 2012)• So far no FiTs have been granted

< 50 kWp 50 kWp – 1 MWp > 1 MWp

€ 0,274 € 0,231 € 0,205

SERBIA

• Uniform FiT of € 0,23 / kWh• FiT period 12 years• PV PP state quota 5 MWp• So far 2 PV PPs built, total installed

power 10 kWp

• Indications that there will be significantly increased quota, more detailed breakdown of FiTs and more transparent administrative procedures

FYRO MACEDONIA

• FiT period 15 years• PV PP state quota 10 (2 + 8) MWp installed power• So far:

- < 50 kWp: 6 PV PPs (218 kWp) FiTs granted; 1,46 MWp permits issued

- > 50 kWp; 2 PV PPs (1,25 MWp) FiTs granted; 41,23 MWp permits issued

• Big (1 MWp) projects facing grid related obstacles

< 50 kWp 50 kWp – 1 MWp

€ 0,30 € 0,26

• Currently not much happening outside of Slovenia• Region will remain (PV) fragmented, administrative obstacles

won‘t just dissapear overnight yet• Coming closer to EU (for states) and grid parity (for PV) should

mean PV will take hold also in this region• Within 3 – 5 years regional market of 300 – 500 MWp of annual

installations could / should develop

While there surely will be clouds and possibly showers in near future, mid-term weather forecast for the regions is SUNNY!

EX-YU WEATHER FORECAST