Colexon: Implementing the Future

Colexon: Implementing the Future

Colexon is a leading photovoltaic project developer in the world. The shares of Colexon are traded in the Prime Standard of the Frankfurt/Main stock exchange. Colexon is one of the pioneers in the use of innovative thin-film technology and has many years of experience in the implementation of large-scale PV installations. Colxeon has realized more than 1,300 PV projects globally. Turnover last year was 143 million euros, the best ever in its history. Today, Colexon is present in seven different countries. In this interview with Jeanny Lim, Editor-in-Chief of InterPV, Henning Schulze, Colexon��s Chief Asia Representative, speaks about what differentiates Colexon and how the company has geared to tap opportunities in the industry, and reveals his thoughts on thin-film technology and the pressing industry issues.

Reported By Jeanny Lim (SWIED@INFOTHE.COM)

Could you please tell me a little bit about Colexon��s background?how you entered the solar industry and why?

We saw the chance in solar business. Back in the end of 2003, slightly ahead of others, we saw the potential the solar Photovoltaic (PV) technology has. Although, at that time, the scale was pretty small, we thought it was the future technology that would eventually become very competitive to other energy sources.

What are some of the major projects you��ve carried out recently?

We��ve done the world��s biggest thin-film rooftop system for three consecutive years like in 2006, 2007 and 2008. The biggest one now is nearly 4.64 MWp on a 90,000 sq. m. roof. We��ve done in South Korea the two biggest building integrated projects in the country. One is roughly 3,000 sq. m. and the other one is 2,000 sq. m.

We can supply all kinds of projects. We can do roof-top, ground-mounted and BIPV, and we can work with thin film, crystalline, fixed mounting structure, 1 axis tracking systems and 2-axis tracking systems.

Then, what is it that you cannot do?

For us the important thing is that we can really say to our customers that we can give them a set of solutions. Then, we can choose what��s best for them. What we cannot do is manufacturing. We are saying that we are an independent system integrator. This ��independence�� is important to be able to really give our customers a very objective consultancy on which technology or what kind of system is the most suitable for the conditions at their site. So, I would say what we cannot do is manufacturing products. But in terms of system solutions, we set it as our aim that we can offer any system solution that��s out on the market. While we can offer any system solution, our main strength is still in the roof-top.

Please tell us some of the competitive edges that differentiate you from your competitors.

One is that we are able to supply all major technologies including a number of module technologies that are out on the market. And we are already pretty international. Our biggest market is still Europe, but we have already entered emerging or upcoming markets.

And maybe some of our main competitors, in terms of company size, have been looking more at the ground-mounted systems whereas we have been focusing more on roof-top systems.

And we have always, from the very early stage, conducted a lot of research on thin film and have used a lot of thin film in our projects, which means we have greater know-how and experience in thin-film technology.

EGW Gescher solar power plant 1.43 MWp

What is your perspective on the future of thin-film technology?

First, you need to distinguish which thin-film technology you are talking about. Cadmium Telluride (CdTe), for which First Solar is best known, still has an advantage over crystalline because the module production is much cheaper and the efficiency is comparatively high.

CIS/CIGS does have a good potential but its actual relevance to the market as of now is not that big because the number that is being produced is not that big. In addition to that, the price is very high. A lot of companies are working on amorphous plus microcrystalline, the micromorph. It has the potential to become a major product on the market if it does reach high efficiency. But the companies still lack the experience with mass production of these modules. Pure amorphous silicon is feeling the pressure from the market because balance of system costs is remarkably higher than for crystalline modules. So with the crystalline module price staying where they are right now, the module price for amorphous silicon would have to be very low to be competitive.

At which point will the thin-film technology really take off in the market?

I think what it has to achieve is system price, not only the module price. That, of course, includes a lot of factors such as module efficiency, module price, balance of system costs and the price for the roof or the land. But I think thin film can take off if it achieves a system price that is constantly 5-10% getting cheaper than crystalline silicon.

Another thing is that customers have to become still more familiar with, especially, amorphous silicon, micromorph and CIS or CIGS. A lot of customers still lack experience with these technologies.

Nobody disagrees that 1 kWp of thin-film produces more electricity than 1 kWp crystalline silicon but people want to see themselves the real data, the real figures.

Anything to update us about Colexon businesswise?

We are in the process of merging with our main shareholder who is a renewable energy investment company that actually owns and operates solar power plants. This merger is still subject to approval of our shareholders. If our shareholders agree on, Colexon will in the future not only become one of the biggest project developers of solar power plants but also play as an investor or owner of systems.

As a system integrator in the solar industry, what do you think is the pressing issue that the industry is currently facing that needs our immediate attention for developing this industry further?

I would say it is project financing, especially for large-scale projects. That is where the bottleneck is. It should be resolved soon because if you look at markets like Germany, Spain and Korea, where there is feed-in-tariff, it��s actually a very safe investment because your income per kilowatt hour is guaranteed. So there is no risk concerning that.

The risk of doing project financing for a bank for a PV project is very low because when you have feed-in tariff, you have the legally fixed rates at which the electricity gets sold. And also the technological risk is very low if you work with experienced companies. From that point of view it should be a very safe investment and the returns are quite good. They are very solid, they will come in every year, every month. I do not really see why banks are hesitant to finance those projects. The thing is, since the global financial crisis started, what makes me remain optimistic about the market is that the U.S. and China have renewed their policies supporting PV or they have put a new policy in place. Although we are facing hard economic times, I think it��s very encouraging that the governments of the two major economies in the world will all be supporting PV.

In Korea, they are talking about removing the current feed-in tariffs and replacing them with RPS. What do you think about this? Is that a step in the right direction?

As far as I understand, this is going to start in 2012. From 2012, we will have to see where we are in terms of cost and prices. It��s hard to forecast what will happen. For PV, if you have a feed-in tariff, obviously, it��s only for PV, so it��s the easiest.   

If you have RPS, PV has to compete with other renewable energy sources. But that��s OK if this is where we have to go to make our industry more competitive. Korea still has three years.

You are quite familiar with the China solar market. What do Chinese customers usually want? Is there any difference in demand from Chinese customers compared to their European counterparts?

Very generally speaking, China is the market that looks more at prices than costs.

But in China, too, you get different kinds of customers as well as in Europe. In China, there are customers who prefer German products and German engineering because they consider made-in-Germany a kind of trademark, promise of quality. But other customers just look at the price. You get different kinds of customers in all markets.

Jeanny Lim is Editor-in-Chief of InterPV. Send your comments to swied@infothe.com.