The solar industry is going through troubled times: over-capacity of panels on the world market, governments withdrawing subsidies, and a lot of corporate consolidation. We talked to Wiro Zijlmans CEO of Smit Ovens, about why thin film solar technologies have a bright future and the role of thermal processes in high-volume manufacturing.
Wiro Zijlmans: Smit Ovens began supplying thermal processes for thin film photovoltaic (PV) production about 10 years ago. We saw solar as a growth market with a positive role to play in meeting the world’s energy needs. Today, even the International Energy Authority, which tends to be pro fossil fuel and nuclear, recognises that solar is a vital part of the global energy mix.
And solar energy generation is becoming increasingly competitive. It’s getting close to grid parity in countries like Spain and Italy that have high electricity prices and lots of sunshine.
Also, demand for panels is increasing by 25 per cent per year in some markets. So there are good reasons to be optimistic, but the market is going through a transition.
Many European producers are struggling because they were founded at a time when there was a lot of government support, particularly in Germany. Now, governments have reduced or even stopped subsidies. So these companies need to transform to survive in a much more competitive environment. Producers in the USA and China have always been more realistic about keeping costs down. However, even in China with its massive growth in production, manufacturers of crystalline silicon PV cells are looking for cost reductions because they are losing money on them.
PES: So why are thin film technologies the way forward? There are reports of big LCD panel manufacturers like Samsung and Foxconn considering a move into thin film PV. Are you surprised by that?
WZ: No. The industry has reached a tipping point. Crystalline silicon is a mature technology, with very little scope for further cost reductions to meet the new market realities. But there is still plenty of room to cut costs in thin film production. In the long-term, it will beat crystalline on the price: this is where manufacturers can achieve profitable high-volume production if they get their processes right.
In fact, build-up of thin film capacity is already increasing faster than crystalline silicon. And Chinese companies are investing in European and US companies to take advantage of their technology know-how and established market positions.
