1. Global Presentation 25/11/20051

2. Global Presentation 25/11/20052 EPIA and its members Top 10 worldwide – 9 EPIA members

3. Global Presentation 25/11/20053 EPIA and its members EPIA members 83% of announced world cell and module production in 2005 Source: EurObserv’ER, Photovoltaic Energy Barometer 2005

4. Global Presentation 25/11/20054 EPIA has 3 objectives: the most credible reference point for the European PV Industry stakeholders 1.To become the most credible reference point for the European PV Industry stakeholders. EPIA will provide accurate information, statistics and feedback to both its members and the wider audience. the development of new PV markets 2. To help shape the development of new PV markets both in Europe and export community. the lead in positioning the photovoltaic industry 3. To take the lead in positioning the photovoltaic industry within the European political environment and supporting the member state association in their local objectives. Objectives

5. Global Presentation 25/11/20055 0 50 100 150 200 250 300 350 400 450 1998199920002001200220032004 Yearly Installed MWp DEEU without DE Source: IEA PVPS

6. Global Presentation 25/11/20056 Market growth strategy Europe until 2010

7. Global Presentation 25/11/20057 Source: (1998-2003) PV News & Strategies Unlimited; (2004) Solarbuzz 1.Market development 1.Market development Historical Market Growth by Region (MW)

8. Global Presentation 25/11/20058 Source: EPIA World Market Analysis 1.Market development and Future 1.Market development and Future Market Growth by Region (MW)

9. Global Presentation 25/11/20059 9 18 % p.a. 63 % p.a. 40 % p.a. 1.Market development 1.Market development World PV Market Size and Application Segmentation

10. Global Presentation 25/11/200510 30 % p.a. 25 % p.a. 10 Mrd€ (20 Mrd€) 80 Mrd€ (160 Mrd€) 250 Mrd€ (500 Mrd€) 1.Market development PV market increase and necessary investments in production equipment 300 GW/Year @ 2030 Source: RWE Energie AG and RSS GmbH

11. Global Presentation 25/11/200511 1.Market development

12. Global Presentation 25/11/200512 Source: RWE Energie AG and RSS GmbH Photovoltaics Utility peak power Bulk power 2.Competitiveness 2.Competitiveness Electricity Generating Cost for PV and utility prices

13. Global Presentation 25/11/200513 2.Competitiveness 2.Competitiveness Correlation between Daily PV Power Production and Energy Consumption of an Office Building in Spain Source: RWE Energie AG and RSS GmbH

14. Global Presentation 25/11/200514 Spot market price PV power output Source: 2.Competitiveness 2.Competitiveness Spot Market Prices in Correlation with PV Electricity Generation in Germany

15. Global Presentation 25/11/200515 2.Competitiveness 2.Competitiveness Regional PV-Generation per installed kWp Source: European Commission, DG Joint Research Centre

16. Global Presentation 25/11/200516 Source: European Commission, DG Joint Research Centre 2.Competitiveness 2.Competitiveness Price of solar electricity for individual user of a small PV system (<5 kWp) system costs: 6 eur/Wp capital investment payback time: 20 years interest rate: 4% inflation: 2% yearly maintenance costs 1% of the investment mounting at an optimum angle

17. Global Presentation 25/11/200517 Source: 2.Competitiveness 2.Competitiveness Price Experience Curve for PV Modules

18. Global Presentation 25/11/200518 Source: Solarbuzz 2.Competitiveness 2.Competitiveness Solar Module Market Prices Silicon Shortage!

19. Global Presentation 25/11/200519 3.Technology evolution 3.Technology evolution National and EU Commission R&D budgets for PV from 1998 to 2004 Source: Trends in Photovoltaic Applications, PVPS, Sept. 1999 to 2005 1 EU includes AUT, DEU, DNK, FRA, GBR, ITA, NLD, PRT, SWE 2 EU plus NOR and CHE

20. Global Presentation 25/11/200520 3.Technology evolution Source: @ RWE SCHOTT Solar GmbH

21. Global Presentation 25/11/200521 4.Support Programs 4.Support Programs General considerations for a future technology double digit and stable growth high volume → economy of scale competitive profit making to the industry sectors global industry PV solar electricity is a high potential candidate ! Need for local industry-political actions

22. Global Presentation 25/11/200522 4.Support Programs 4.Support Programs Influence of Feed-in tariff on an annual PV installation in Germany (MW) New Feed-in Law Source: @ RWE SCHOTT Solar GmbH and EurObserv’ER, Photovoltaic Energy Barometer 2005 Feed-in Law 100,000-Rooftop program KfW 100,000-Rooftop program KfW 1,000-Rooftop program (2.500x3kW) 1,000-Rooftop program (2.500x3kW)

23. Global Presentation 25/11/200523 4.Support Programs 4.Support Programs Total installed capacity in Europe in 2004 (MWp)

24. Global Presentation 25/11/200524 4.Support Programs 4.Support Programs Germany vs Rest of Europe in 2004 (MWp)

25. Global Presentation 25/11/200525 Advantages : Focus of customers will be on product quality and performance of the systems for a long period of time Investors confidence secured (attractive rate of return for investors) Does not a burden on public funds No Bureacratic constraints Appropriate Tool to stimulate Industrial Investment 4.Support Programs 4.Support Programs The most effective support programme Feed-in tariff Feed-in tariff

26. Global Presentation 25/11/200526 4.Support Programs 4.Support Programs Market Potential until 2010 (2015) assuming a quick Introduction of an EU-wide Feed-in Tariff System Source: @ RWE SCHOTT Solar GmbH and EurObserv’ER, Photovoltaic Energy Barometer 2005

27. Global Presentation 25/11/200527 GPSC – invited PV Industry Associations and next steps SEIA - The Solar Energy Industries Association CanSIA -Canadian Solar Industries Association EPIA – European Photovoltaic Industry Association TPIA - Taiwan PV Industry Association BCSE - Australian Business Council for Sustainable Energy JPEA – The Japan Photovoltaic Energy Association Creia- Chinese Renewable Energy Industries Association NZPVA - New Zealand Photovoltaic Association KPDO - Korean Photovoltaics Development Organization GPSC 06 June 2005 06 June 2005 Barcelona