Within the field of renewable energies, PV is an absolute newcomer only enjoying full political support since a few months ago, thus opening the full potential of an emerging market to those who find their position first.
USA Pre-Planning / Overview
848 N. Rainbow Blvd. # 1573
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While the long term assurance of oil and gas supply slowly
fades away from the hidden agenda of those who used to
start wars on this behalf, while the concern about climate
change rapidly translates into a global consensus on CO2-
reduction, and while more and more political and
economical leaders understand that a safer, a more peaceful
and a long-lasting planet needs to live on unlimited,
renewable and clean energies instead of exploiting and
polluting itself, new industries have emerged at a breath-
Huge public and private investments have been made in the
past few years to encourage research and technology
development in renewable energies.
The most commonly and most steadily available source of
energy is and will stay our sun - with current photovoltaic
technologies still showing an enormous potential of
increasing efficiency and affordability.
Our sun is able to over-cover our current energy needs by a
factor of 2.000, every day, for millions of years to come.
While the global long-term growth perspectives continue to
promise the best, market paradigms are shifting.
For the first time ever, we are running into overcapacities in
module production, while technologies are having a
challenging time to catch up with the fast-growing need for
more efficiency and affordability. While grid-parity appears
on the horizon, consumers have started to complain about
their fees, which are driven by the overall amount of grid-
tied solar production.
Market power is going to move downstream from the
technology suppliers and distributors (who until now
deserved that name) to the broadening, increasingly
segmentable customers such as installers, roofers,
architects, house builders, real estate managers, and more,
many of them waiting for more points of sales and brand
clarity, many others getting used to sourcing from online
While technologies and applications diversify for the sake of
more added value, system integrators and some of the
manufacturers verticalize to close the loop from cell and
module production down to the end consumer.
2011 and 2012, globally and as far as roof installations are concerned, are expected to become years of reduced speed of
growth, market consolidation and new marketing and sales concepts, while investors are expected to focus on large scale
Locally, and encouraged by governmental
incentives, the German market exploded
over the past two years to be by far the
number one growth market for
photovoltaic projects worldwide. Along
with the German market, other primary
?gold rush? markets such as Japan, and in
Europe, above all, Spain and Italy evolved,
with France, Bulgaria and the Czech
Republic lately expected to become major
growth markets short-term.
At the same time, beyond Europe, the USA
and, to an extent, China are ready to
become major growth markets for the
next five years or more.
In many major markets, larger scale open land projects have become the ones that enjoy only
the low end of feed-in tariff systems.
The Spanish market virtually died ? with the broad roof business still suffering from less-than-
sensitive governmental cuts.
The German market is exposed to a continuous regression of feed-in tariffs which already
dropped down to the 20ies cents.
Italy is going for similar levels for larger installations.
France capped their new installations to 500 MW p.a. (cf. Germany 2010: > 6.000 MW), and
grant high end tariffs only to BIPV with additional barriers imposed by certification and
insurance issues. The large electricity suppliers (and their daughters) dominate the remaining
The Czech Republic will raise taxes on PV production.
The USA and China have mighty home players with some of the Chinese OEM contractors
striving for their own brand identities.
New alternatives, such as Greece, partially suffer from their own instability.
Romania has developed significant wind energy projects
over the past years. PV is still in its early childhood. The
country, even though part of the EU, lived in the shadow
of the more exciting markets.
Still, insolation, in certain regions, equals Bulgarian
conditions supporting annual production factors of 1.000
to 1.700 (Kwh per sqm) .
Feed-in tariffs have been decided to be elevated from a
very low 0,029 Cents to 0,148 Cents per KWh soon, while
the government only lately has improved installation
incentives by raising the number of Green Certificates
granted per PV MW from 3 to finally 6 with each
certificate selling off at a guaranteed price of EUR 52,- .
Accordingly, not only some of the local players shift their
focus from wind to sun, but also the first international
players announced to build module factories in Romania.
The region of Dobrogea is situated next to the Black Sea
coast and the Bulgarian border in the Southeast of
Romania. It comprises of the districts of Tulcea (Danube
delta) and Constanta, the center of Romania?s major
Only a few kilometers off the coast line, a multitude of
?deserted? open lands stretch out from the North to the
South, not being expected to attract any residential
investment in the future.
The proximity to the coast line with fair and reliable wind
conditions has attracted a number of wind energy
investments, backed-up by a solid prognosis of a regional
potential of more than 1.400 MWp.
While the Romanian administration in general is not yet
very much used to managing renewable energy investment
projects, Dobrogea authorities in particular, due to the wind
boom, already look back to a regional ?tradition? in working
down all necessary administrative steps, including grid-
Basic Revenue and Investment Model
A 10 MW plant with an output factor of Revenue Stream
1.200 will produce 12.000 MW annually,
generat Installed MWp (2 x MWp) 10ing 72.000 Green Certificates
selling off for EUR 3.744.000 p.a. and an Medium output factor (conservative) 1.200
add-on of EUR 1.776.000 from feed-in MW production p.a. 12.000
tariffs leading to a total revenue stream of
EUR 5 No. of Certificates p.a. 72.000.520.000 p.a.
Market Value of Certificates in EUR (52,- p.c.) 3.744.000
Feed-in revenues (0,148 cent p. Kwh) 1.776.000
Total Annual Revenues (EUR) 5.520.000
15 ha of appropriate open land, leaving
enough space around the plant, are
currently available for appr. EUR 150.000
in the relevant area.
Investment / CAPEX EUR
The total cost of installment of EUR 3.5 15 ha / 150.000 sqm of land 150.000
Mio per MWp are the current typical Installing 10 MWp high efficiency modules 35.000.000
European average for advanced
Expenses, permissions, provisions 500.000
technology modules, inverters and plant
management systems. Total Investment 35.650.000
Assuming a standard share of 1% of the Annual cost EUR
investment needed for annual
maintenance and operation plus a share o Maintenance and operation (1% of investment) 350.000
0,5% for insurance, the total annual Insurance (0,5% of investment) 175.000
operation costs sum up to EUR 525.000,-
Total operation cost 525.000
This leads to an estimated EBIT of EUR
4.995.000,- p.a., which stands for 14% of
the investment. ROI 14,0%
European Structural Funds, also in 2011, principally take over a typical share of 40% (Bucharest) to 70% (rest of the country) of the
eligible investment costs of green energy projects. This is non-refundable. Projects with a volume of up to EUR 50.000.000,- and
with up to 10 MW are in scope. This can significantly improve the ROI. (The typical set-up times for an application file are 6 to 9
An investment into the Romanian PV market is a strategic one. The
marketplace has just been born and still is heavily struggling with the
effects of the financial crisis. Leadership and initiative are missing all
Within the field of renewable energies, PV is an absolute newcomer only
enjoying full political support since a few months ago, thus opening the
full potential of an emerging market to those who find their position
Agricultural electrification and renewable energy concepts for rural
communities do not only find up to 98% non-refundable EU support,
but also imply a broad need for off-grid solutions.
Millions of roofs standing by for renovation, open business opportunities
for BIPV-solutions if common vertical business models are established.
Politics wait for inspiration from investors when it comes to their EU-
related catching-up commitments in energy concepts.
Horizontal expansion into other renewable energies such as biodiesel is
on the edge of offering more exciting opportunities.
Excerpt from customer list:
3COM, Alcatel, Alfa Romeo, Arag, Bang & Olufsen, Black & Decker, BMW, Bose, British Petroleum, Cisco Systems, Citicorp, Compaq,
Condor, Continental, Dell, Deutsche Bank, Deutsche Post, Deutsche Telekom, Die Welt, Dräger Safety, Dräger Medical, Encad, Epcos,
Fujitsu, Fujitsu-Siemens, General Electric, General Motors, Hewlett Packard, Hoechst, Intel, Ipass, Lufthansa, Mannesmann, MAN
Roland, Mehler Texnologies, Michelin, Micorsoft, Osram, Polow, Postbank, Qualcom, Quantum, Raab Karcher, Rexroth, Rohde &
Schwarz, RWE, Saab, SAP, SAS, Schindler, Siemens, Sun Microsystems, Swissair, Telecom, TÜV-Rheinland, The Wyatt Company, USA
Advantages of collaboration
? Long-term experience in market assessment and feasibility studies
? Proven track record in business and project development
? Well connected both to the advanced German solar market, to the Romanian and local Dobrogea authorities, and to the
Romanian banking sector
? Experience in renewable energy projects in Romania
? Excellent technical teams for all project steps standing by
Phone Romania: +40. 7354 22 931
Phone Germany: + 49 2151 3255 356