PV market in

Russia :
challenges &
prospects

SEMICON Russia PV Forum May 31, 2011

presented by
Andrey Kotenko, Head of the Polysilicon Division
What are the prospects for the PV market in Russia?

 Pros.:
 High insolation levels over large areas with electricity demand
 Over 2/3 of the RF are not covered by the power grid
 High grid connection charges
 Rate increase by the natural monopolies
 Gas & coal hold over 60% in
Russia’s energy sources
 Gas prices rose 26% in 2010
and will increase by 15%
a year till 2013;

Source: Ministry of Energy, Ministry of Economic Development

 Cons.:
 Lack of support structure to renewable energy
 Low competitiveness of the photovoltaics
Russia does not depend on the import of feedstock due to
availability of its own quartzite deposits and processing

QUARTZ MINE METALLURGICAL SILICON TCS

> 30 deposits in different parts ZAO Kremniy  Nitol (14 000 MT/year)
of Russia (45 000 MT/year)
(Output – 2,5 million МТ/year)  Renova Orgsintez
(5 000 MT/year)

ZAO Kremniy, location: Shelekhov Nitol, location: Usoliye-Sibirskoye Renova Orgsintez,

location: Novocheboksarsk

Source: Nitol

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Russia intends to become an important polysilicon supplier

Budget Total Capacity Full capacity

# Project Location
M$ МT/y year
1. Nitol Usoliye-Sibirskoye 650 5 000 2012
2. Renova Orgsintez Novocheboksarsk 768 5 000 ?
3. Khimprom Volgograd 270 5 000 ?
4. Konti - ZPK Jeleznogorsk 500 3 600 2014
5. Titan Omsk ? 10 000 2014
RUSAL Russky
6. Abakan ? 500 4 000 ?
Kremny
7. Permsky Kremny Perm ? 2 500 2013
8. Kremniy na Donu Gukovo 1 220 20 000 ?
9. Helios Tomsk 250 3 000 ?
10. NPO Mostovik Omsk ? 3 000 2014
Total: 61 100

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Russian and foreign engineering companies assist Russia
in becoming an important polysilicon supplier

Technology and main equipment

supplier

EPCM services

EPCM services, Polysilicon and TCS

technology

EPCM services, TCS technology

EPCM+ services
page 5
Nitol - 2 years of stable polysilicon
supplies to the PV market “giants”

1.4 GW/year
10 mln modules in 80 countries

1.1 GW/year
Moving down the PV supply chain…

Top-3 Solar Wafer producers

2010
PCMP 33
Helios Resource 100
AMEX 10
Top-4 Solar Cell producers
Capacity MW/y

Solar Wind 5
KVANT 5
PCMP 1,5
STV-Telecom 1,5 Capacity MW/y

Top-5 Solar Module producers

Solar Wind 5
STV-Telecom 5
KVANT 10
BTCP-crystal 12
RMCIP 12 Source: Company data

Capacity MW/y page 7

Companies pursue expansion plans and announce new
projects
Capacity Full capacity
Product Project
МW/y year
Wafer AMEX 20 2020
Cell Kvant 10 2011
Expansion
Solar Wind 120 2014
Module
STV-Telecom 15-150* 2011-2014
Usolye-Sibirskoe project 50 2013
Wafer Solar Wind 60 2015

New plant Solinkom 50 ?

Hevel (thin-film) 130 2012
Module Solar Stream / Ioffe Institute
85 2015
(concentrator PV)

page 8
* depends on the market situation
HEVEL Solar – the biggest solar module
manufacturing plant in RF

Corporate structure 51-49 Joint venture of Renova and Rusnano

Location Novocheboksarsk, Chuvash Republic
Facility area 28,000 sq. m.
Product 125 Wp TF silicon PV modules
Production capacity 130 MWp per year (>1 million modules/year)
Equipment New-gen Oerlikon micromorph® turnkey FAB

construction starts
Q2 2010

production starts
December 2011

end of ramp-up
July 2012
Source: Hevel Solar

page 9
PV installations in Russia

 Total PV installations in 2010: 600-1000kW (2009 – 500kW) – min.

20% growth;
 Installation companies have MW-scale plans, depending on the
government support
 PV plants under consideration for 2011-2013:
 22MW PV power station is announced for Kislovodsk.
 400kW PV power projects planned in Belgorod region
 1+MW PV power plants planned in Yakutia
 2-3MW PW power projects considered for other regions;
 Total projected capacity – 10+ MW installed by the end of 2013;
 Key players in the PV installations market:
 VIEKO, Solar Wind, Solteh, Inverta, Suntechnology

page 10
PV installations – Belgorod project

 PV power station in the village of Krapivenskie Dvory, Belgorod region

 The largest PV installation in 2010 ― 100kW (expandable to 150kW)
 Combines polycrystalline Si modules (RZMKP) and a-Si panels (imported)
 Installers ― VIEKO
 PV electricity is purchased at a higher rate (9 RUR or €0.23/kWh) compared to
the one from Kursk nuclear power station (€0.06-0.1/kWh).
 Total capex ― 22 mln RUR (€ 550 thousand);
 Expected pay-off period ― 5-6 years;

Source: VIEKO, Nitol

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 Nitol is a reliable partner in installation
projects

 From a business plan to project, design &

installation works

 PV modules from leading global manufacturers

Government support to renewables/PV in Russia ―
under development

Renewables targets set (Government Decree 1-p, 2009) 2010 2015 2020
Share of renewables in the total power output, % 1,5 2,5 4,5
Bln kW hour per year from renewables 16,8 33,5 71,1

 10/10 ― RF Government approved criteria that renewable power generators have to

meet, in order to receive compensation for technological connection to the grid;

 12/10 ― amendments to the law “On electric power industry” outlined the mechanism
for renewable power generators to sell electricity under long-term capacity supply
contracts at regulated prices;

 To be developed ― mechanism of :
 connecting renewable power generators to the grid,
 calculating capacity purchase tariffs (= capex compensation), etc.;

 PV power projects are already feasible under regional programs on energy

saving and energy efficiency;
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 Industrial Park “Nitol-Usolie”

 easy IN and OUT transportation (auto, rail, air)

 Usolie-Sibirskoe: city of highly skilled chemists
 space for any facility
 electric power available at a very attractive price
 highly developed site infrastructure
 tax benefits

Usolie
Acknowledgement

 AMEX
 Bekaert
 Helios Resource
 Hevel
 IOFFE Physico-Technical Institute
 Kvant
 Ryazan Works for Ceramic-metal Devices
 STV-TELECOM ZAO
 VIEKO, LLC

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