SMA Future of Solar TeBest practices in Solar Power Development in Asia

SMA – Future of Solar Technology

The role of PV inverters and system technology

SMA SolarTechnology AG

Matthias Hermes, SMA Solar Technology AG

Bangladesh Solar Energy Development Forum, ADB, Dhaka, Bangladesh, 20 September 2011

DisclaimerDisclaimer

This presentation may contain future predictions. Future predictions are statements that do not describe facts from the past. They also contain assessments on our assumptions and expectations. These assessments are based on planning, estimates, and forecasts, which are currently available to the SMA Solar Technology AG (SMA or company) board of directors. Future predictions are therefore only applicable on the day on which they are made. It lies in the nature of future predictions that they contain risks and elements of uncertainty. Various known and unknown risks, uncertainties, and other factors may cause the actual results, financial situation, development, or performance of the company to significantly deviate from the assessments provided in this presentation. These factors include those that SMA has described in published reports, which are available on the website www.SMA.de. The company assumes no liability for updating or adjusting such future predictions in accordance withThe company assumes no liability for updating or adjusting such future predictions in accordance with future events or developments.

This presentation serves informational purposes only and does not constitute an offer or request to buy, keep, or sell company shares.

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Market and technology leadership in PV inverters sinceMarket and technology leadership in PV inverters since 1981

> Founded in 1981> Turnover of1.9 billion Euros in 2010> 7.8 gigawatt produced in 2010> More than 6,500 employees all over

the globe, approx. 360 trainees> Represented in 18 countries on four

continents> 11.5 GW annual production

capacity> Solar Academy for more than y

15,000 installers per year

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In the first half of 2011, SMA achieved over 50 % in sales abroad.

Strong presence in Asia – Pacific RegionStrong presence in Asia Pacific Region

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More than 900 sales and service personnel all over the globe

SMA is the market leader & trendsetter in inverter technology

All power ranges All module typesAll PV applications

SMA is the market leader & trendsetter in inverter technology

Thin-FilmFrom < 1 kWOn-grid

Off-grid Crystalline Module

To > 1 MW

Back-up ConcentratorpModule

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SMA offers a complete inverter product range for all solar applications

SMA expects a market stagnation in 2011SMA expects a market stagnation in 2011

Market Estimated Estimated market segmentation 20111

Germany

North America

volume2011 in GW1

5.0 GW

gResidential Commercial Industrial

North America

Italy

Japan

5 0 G

3.5 GW

3.0 GW

1 5 GWFrance

India

ROW

1.5 GW

1.0 GW

0.5 GW

SMA expects a regional shift in demand to the growing markets USA

Total up to 5.5 GW

17-20 GW

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and Asia.1 SMA estimates

Overview: System Designs for Solar Power in Asia

1. Off grid / stand alone systems

Overview: System Designs for Solar Power in Asia

> Solar Home systems, street lights, pumps, telecom, mini grids, hybrid systems

2. Grid interactive systems with battery backup (unreliable grid)

> residential and commercial rooftop designs> residential and commercial rooftop designs

> Net metering, feed-in-tariff, time-of-use-tariffs

3. Grid connected systems (without battery backup)y ( y p)

> Residential and commercial rooftop systems

> Utility scale PV farms

4. Experience in emerging solar markets in Asia

5. Conclusion

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1 Off grid systems: mini grid and hybrid systems1. Off grid systems: mini-grid and hybrid systems

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AC CouplingAC-Coupling

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ExtendableExtendable

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Modular DesignModular Design

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Different sourcesDifferent sources

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Productive power in network qualityProductive power in network quality

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System features and examplesSystem features and examples

> Mini grids and hybrid systems 1-300 kW

> 1 or 3 ph systems

> Integration of PV, wind, hydro, diesel or plant oil generator> 1 or 3 ph systems

> AC and DC coupling

diesel or plant oil generator

> Flexible and expandable

Sandwip 100 kW Solar Mini Grid, Bangladesh (BGEL)> Electricity based on Diesel genset was unreliable and costly

Electrification of > 190 villages in Chinay g y

> Installation of a mini-grid to serve 400 customers: shops, residences , school, health center

> Metering on consumer level

> System integrators: PSL Energy Systmes (BD) Asantys

> Pacific Islands

> Isle of Eigg, Scotland

> Largest off grid systems in New Zealand and Afghanistan

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> System integrators: PSL, Energy Systmes (BD), Asantys

> Support : IDCOL , KfW > Numerous installations in Africa, Asia

Panel Layout-1

Panel Layout - 2

Panel Layout - 3

Hardware Installation

Hardware Room - 1

Battery room

Project Site in March,2010

Hardware Carrying- Panel

Panel Structure

Hardware Installation-Bi Directional Inverter

Hardware Installation

Connected Consumer- Sandwip Digital Lab

Connected Consumer- Restaurant

Connected Consumer- Commercial Shop

Metering System

Switch on by Chairperson of PGEL on Sep 29, 2010

Example: 100 kW PV System in Afghanistan for rural electrificationExample: 100 kW PV System in Afghanistan for rural electrification

> Sayed Karam - Paktia Province - AF

> 100 kWp solar PV system (SMC 5000A)

> 100 kW micro grid with 21 x SI 5048

> 250 kVA diesel generator

> 600 houses and small businesses

> Every connection has a pre pay meter

> 14 km distribution lines with 20 KV transmission line

> All equipment is containerised for fast and safe installationand safe installation

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ExamplesExamples

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ExamplesExamples

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ExamplesExamples

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ExamplesExamples

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ExamplesExamples

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SMA Future of Solar Technology2. Grid interactive systems with battery backup

Residential and commercial systemsSMA – Future of Solar Technology Residential and commercial systems

SMA SolarTechnology AG2 x 100 kWp backup systems in Andrah Pradesh

3. Grid connected systems (without battery backup)

Direct current (DC)

Solar inverter Alternating current (AC)

1

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Grid monitoring + i

System monitoring

Solar generator control

Additional inverter tasks

+ servicesmonitoringcontrolMPP tracking

Inverter ffi iefficiency

up to

η =98.6%

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η

Selected Utility Scale Plants with SMA InvertersSelected Utility Scale Plants with SMA Inverters

Projects in Europe

> 53 MW Lieberose (84x SC 630HE 11)> 53 MW - Lieberose (84x SC 630HE-11)

> 40 MW - Waldpolenz (80x SC 500HE-10)

> 43 MW - Köthen (4100x SMC 10000TL-10)

> 20 MW - Mengkofen (32x SC 630HE-11)> 20 MW Mengkofen (32x SC 630HE 11)

Projects in North America

> 22 MW - Sacramento CA (3600x SB 6000US)> 22 MW Sacramento, CA (3600x SB 6000US)

> 12 MW - Jacksonville, FL (20x SC 630HE-11)

> 60 MW - Sarnia, CAN (120x SC 500HE-US)

Projects in India

> 2 MW - Awan, Punjab (4 x SC500HE-11)

> 1 MW - Mahagenco, MH (4x SC 250)

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g> 5 MW - Khimsar, Rajasthan (450 x SMC11000TL)

Commercial rooftop applicationsCommercial rooftop applications

Building integrated applications (BIPV)Building integrated applications (BIPV)

Residential roof top application (Dhaka)Residential roof top application (Dhaka)

4 Experience in emerging solar markets in Asia4. Experience in emerging solar markets in Asia

Typical questions from installers, EPC, developers:> Choice of modules: TF, c-Si, tracker , CPV, BIPV ? Transformerless inverters?

> Commercial and residential system: with or without battery ?

> Utility scale MW project: Central or decentral inverter concept ?

> Effect of Module temperature coefficient at high temperatures ?> Effect of Module temperature coefficient at high temperatures ?

> Quality of components at demanding ambient conditions ?

> Service life of modules and inverters?

> Grid stability at low and medium voltage level ?

> After sales service and maintenance

> Developers / EPC should be familiar with these topics as they determine ROI

> Most players underestimate effort and time for proper design and engineering. This cost will occur later directly or due to reduced yield, ROI (or missing bankability)

> MW plants are no rocket science but more than only „plug and play“

> Use experience of international system integrators/ EPC players

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L l dLessons learned

> Efficiency, quality and reliability is essential to ensure high yields and ROI over more than20 years and to allow bankable projects

> Paradigm shift from USD/kW to USD/kWh (total cost of ownership TCO, life cycle cost)

> Clarity on low and medium voltage connection requirements and grid performancey g q g p

> Avoid barriers (like import duties on solar equipment)

> Evaluation and performance benchmarks needed:> Irradiation ressources – solar mapIrradiation ressources solar map

> Module test fields

> Performance tests of existing projects (see MNRE reports, CUF and performance indicators)

> Quality of installations

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5 Conclusion and outlook5. Conclusion and outlook

> First of all: Congratulation to the > best SHS program globally

> largest mini grid in the region

> Introduction of new systems:Introduction of new systems:

> Village electrification up to 300 kW

> Residential grid tied systems (with and without battery backup)

> Commercial grid tied systems (with and without battery backup)Commercial grid tied systems (with and without battery backup)

> Utility scale MW projects

> Price of solar panels and inverters will further decrease

> PV will be used from Watt to MegaWatt applications> PV will be used from Watt to MegaWatt applications

> Grid parity will also change the energy sector in Bangladesh

> Pave the way for a solar future in Bangladesh by building trust in technology with further solar applications and sound references

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further solar applications and sound references

O ttOur motto

Let’s be realisticand try the impossible!

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and try the impossible!