pv journal: Enerparc is an engineering, procurement and development contractor and an impartial electrical energy producer. Politicians and potential producers are actually stepping up efforts to revive PV manufacturing in Europe, overlaying the complete manufacturing course of from silicon to wafers, ingots, cells, and modules. Will or not it’s of curiosity to potential patrons of the module?
Stefan Mueller: Sure certainly. We additionally welcome the subject. It’s also identified within the residential sector. There are lots of arguments and likewise advertising and marketing campaigns for getting native merchandise. It really works very nicely there, as a result of this buy can also be an emotional choice. We are actually seeing an increasing number of of the traditional company PPAs being signed by bigger companies, the place power is barely a part of the entire. For them it’s extra vital to have a great story. And a great story implies that they cannot solely cut back their CO2 footprint, but in addition if the merchandise come from Europe and Germany.
Has something modified prior to now years?
Sure, however issues are a bit totally different for power suppliers. They could pay a cent extra per module, and that will finally make a kilowatt-hour of electrical energy 0.3 cents costlier. However that isn’t the one foundation. I feel there’s a willingness to pay increased costs there. Particularly for company patrons with a powerful model, whose merchandise solely have energy-related options.
First we have to take a look at the market. On the one hand there are energy buy agreements, then again, there are tenders. The latter is clearly a part of the most affordable worth. Are tenders nonetheless related to you?
After all that is nonetheless ours. It is a good foundation for acquiring good fundamental financing for medium-sized methods. We proceed to be lively out there the place we promote our electrical energy immediately on the inventory alternate. However we are actually as sturdy as actual company gamers who not solely need power buy agreements, but in addition wish to do developments with us. A great instance is our collaboration with Ikea in Australia. Many companies wish to create a one-stop store, the event, assist throughout development, product choice assist and high quality assurance after which entrust the operation to us.
The firms then maintain the crops?
That is totally different. For instance, Ikea holds crops. However we deal with the amenities as in the event that they have been ours and care for them as such. However, we even have traditional power customers or listed corporations. These are the businesses which can be, so to talk, caught of their tendering mannequin. It’s, for instance, the massive automotive teams that always must make the traditional gentle in the event that they wish to personal belongings. That is troublesome to implement on this dynamic world of renewables. Once we do tasks collectively, we personal the system, however make a previous power buy settlement. Typically with a cable over the fence, typically as a digital PPA the place you promote the values created.
Why is it so difficult when companies promote tasks?
That is due to their processes. There are very clear particulars equivalent to RFI, RFQ, ie data and provide questions, and at last negotiations ought to happen. If it says “binding interval for 9 months”, that does not work for us within the trade. Danger can’t be represented on this manner.
As a result of photo voltaic costs change shortly?
Sure. And naturally, as a public firm, a automotive firm ought to all the time get the most affordable worth. We all know that low-cost is just not all the time the very best quality. And challenge improvement tends to take a very long time, and a worth assure for 9 to 12 months is a threat that prices extra money.
Meaning there are patrons wanting carefully at prices. So does it change into troublesome to make use of European modules when they’re 5% to twenty% costlier?
That is proper. But when, for instance, you go into power buying and selling with giant corporations, i.e. once we plan a plant, retailer it and signal a PPA contract, there’s a totally different dynamic. Company power merchants or patrons know that the market may be very dynamic. Then they’re additionally open to concluding a brief PPA or a PPA for 10 or 15 years. Negotiations are attention-grabbing.
However they most likely additionally lack the emotional facet of paying extra for electrical energy from European modules.
However, these corporations have one other element. Location, for instance, performs a giant position for them. We not too long ago constructed a photo voltaic system at Volkswagen in Zwickau at their plant and are actually constructing a second one. Their precept may be very clear: please come near the manufacturing unit, as a result of they need everybody who takes their e-vehicle there to see the photo voltaic subject. So there’s an emotional half as nicely.
Will such gamers spend cash on European modules?
Let me put it this manner: The talks are there and the curiosity is there.
Does that imply there’s curiosity?
Sure completely. And that is greater than this one cent per watt, which is what our trade is at present promoting for.
What further worth are you able to think about?
My intestine tells me it may very well be as much as 10% or 20% extra.
Nice for European producers. However you can not construct an trade should you set a objective of 10% to twenty% in further prices from the start.
That is proper. That ought to not have been the objective. I feel the objective ought to be that we get a really prime quality with a low CO2 footprint, with a excessive added worth, an “always-available-guarantee-guarantee” and with a excessive product assure normally the. Germany is certainly the pioneer right here. And that is the place prospects are wanting, and never simply within the residential sector.
What different tendencies are you at present seeing out there?
We have now simply related our giant photovoltaic energy plant with storage. An unbelievable quantity is occurring there. Separate storage methods are additionally provided that aren’t deliberate together with wind and photo voltaic. Why not? The constructing allow is less complicated and the connection to the grid is less complicated. I feel an attention-grabbing market is creating there. The large query is who’s the motive force, buyers or community operators?
Previously this was a regulatory drawback as a result of the community operator was not allowed to serve all enterprise fashions.
He can write it down, or he may even launch factors on the community if he acts transparently. He wasn’t all the time.
Standalone storage already exists in relation to the first management reserve.
And he was all the time underneath unbelievable stress. There’s a nice cannibalization. However after I see younger startups lively in all enterprise fashions, it may be thrilling. I additionally discover the subject of creating power customers extra versatile very thrilling. An unbelievable variety of new start-ups are busy there. If that is vehicle-to-grid, if that is a set of power buy agreements. The latter is vital as a result of small corporations additionally wish to decarbonize and wish low-cost electrical energy with out concluding a PPA on their very own.
Trade wants low-cost electrical energy. It was once potential to generate solar energy for 4 cents per kilowatt-hour. With excessive curiosity, these instances are over now, proper?
I do not wish to say that it is fully over now. However we all know that we actually stay in an excellent time with low rates of interest which can be so low you could’t even think about. A excessive rate of interest can actually add to the price. The price of capital is critical.
The place is the price of electrical energy manufacturing for the time being?
It additionally is dependent upon the scale. The final Renewable Vitality Act tenders averaged about 7 cents. That displays the scenario.
When will the price come down?
If rates of interest go down or if there are different enterprise fashions. I imagine that should you mannequin for 30 or 35 years, which traditional company patrons additionally do, then the values can change once more.
That in flip is dependent upon the chance you wish to take and whether or not you’ll be able to construct your financing on that.
That is proper. You can not get financing for 30 years with assured curiosity. Not less than 10, possibly 15 years. That is the actual problem. However I feel different enterprise fashions will flourish there as nicely. We’re additionally speaking to very giant gamers who’re mainly doing every part with their very own capital. Their strategy can also be totally different. We additionally beforehand offered our American enterprise to the Lego household. They’ve totally redeemed all of the money owed to date. They do every part with equity.
They’ve some cash left over and do not know what to do with it?
That is proper. cash is out there. In addition they wish to generate a return, that is clear. However they’ll make this mannequin a bit totally different.
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