Amit Jain October 20 , 2010thor.inemi.org/webdownload/newsroom/Presentations/... · This...
Transcript of Amit Jain October 20 , 2010thor.inemi.org/webdownload/newsroom/Presentations/... · This...
© 2010 SunPower Corporation
SunPower Utility Power Plant A Solutions Approach
Amit Jain
October 20th, 2010
Safe Harbor Statement
2
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.Forward-looking statements are statements that do not represent historical facts and may be based on underlying assumptions. SunPower uses words and phrases such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,”“predict,” “potential,” “continue” and similar words and phrases to identify forward-looking statements in this presentation, including forward-looking statements regarding: (a) plans and expectations regarding future financial results, operating results, liquidity, capital expenditure and business strategies, (b) management’s plans and objectives for future operations, (c) the company’s projected costs and cost reduction roadmap, (d) forecasted demand growth, and projected bookings and pipelines, (e) construction, completion, ability to obtain financing and revenue recognition timing, (f) growth in dealer partners, (g) product development and competitive position, (h) manufacturing ramp plan and scalability, (i) future government award funding, (j) future solar and traditional electricity rates and cost savings of our systems, (k) trends and growth in the solar industry, and (l) the success and benefits of our joint venturesand partnerships. Such forward-looking statements are based on information available to the company as of the date of this presentation and involve a number of risks and uncertainties, some beyond the company’s control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties such as: (i) potential difficulties associated with operating the joint venture with AUO and integrating the SunRay business, and the company’s ability to achieve the anticipated synergies and benefits from these transactions; (ii) the company’s ability to obtain and maintain an adequate supply of raw materials, components, and solar panels, as well as the price it pays for such items; (iii) general business and economic conditions, including seasonality of the industry; (iv) growth trends in the solar power industry; (v) the continuation of governmental and related economic incentives promoting the use of solar power; (vi) the significant investment required to construct power plants and the company’s ability to sell or otherwise monetize power plants; (vii) the improved availability of financing arrangements for the company’s customers; (viii) construction difficulties or potential delays, including permitting and transmission access and upgrades; (ix) Increasing competition in the industry and lower ASPs; (x) the joint venture’s ability to ramp new production lines in Fab 3 and the company’s ability to realize expected manufacturing efficiencies; (xi) manufacturing difficulties that could arise; (xii) the success of the company’s ongoing R&D efforts and the acceptance of the company’s new products and services; (xiii) the company’s international operations; (xiv) the company’s liquidity, substantial indebtedness, and its ability to obtain additional financing; (xv) the company’s ability to protect its intellectual property; (xvi) evolving regional permitting, financing, grid interconnection, technical, and other customeror regulatory requirements; (xvii) possible impairment of goodwill; (xviii) possible consolidation of AUO SunPower; and (xix) other risksdescribed in the company’s Annual Report on Form 10-K for the year ended January 3, 2010 and Quarterly Report on Form 10-Q for the quarter ended July 4, 2010, and other filings with the Securities and Exchange Commission. These forward-looking statementsshould not be relied upon as representing the company's views as of any subsequent date, and the company is under no obligation to,and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
3
Agenda:1. Sunpower Overview 2. Products3. Cost Imperative and Standardization challenge 4. “Oasis Solution”
© 2010 SunPower Corporation
Sunpower Overview
SunPower>1 GW solar PV deployed
>1,000 dealers and growing rapidly
2009 revenue of $1.5B
Publicly listed NASDAQ: SPWRA, SPWRB
5
Commercial Power PlantsResidential
5,000+ Employees; 100% solar
550 MW 2010 production
Diversified portfolio: roofs to power plants
4+ GW power plant pipeline
6
Corporate OverviewIncorporated in 1985
– Celebrating 25 years of innovation
HQ in the Silicon Valley– San Jose, California, U.S.
IPO - 2005Nasdaq: SPWRA - SPWRBManufacturing: Philippines, Malaysia, U.S.Panels deliver the most energy/m2
– All-back contact cellsMost powerful solar technology on the planet ®Customers choose SunPower for the most experience, best technology, and greatest return on investment.
7
PowerLight AcquisitionAcquisition closed January 10, 2007PowerLight incorporated in 1995− Worldwide leader of large solar
systems− Innovator: > 70 patents/applications− 89% CAGR 1997 to 2006Showcase power plants include:
– 35 MW, Florida Power & Light, DeSoto County, Florida, U.S.
– 14 MW Nellis Air Force Base, Nevada, U.S.
– 11 MW Serpa Power Plant, Portugal– 10 MW Bavaria Solar Plant,
Germany
8
SunRay Acquisition
SunRay: leader in power plants and utilities Acquisition finalized in March 2010Expansion of project pipeline with >1,000 MW of projects in Italy, France, Israel, Spain, U.K., GreeceNotable project: Montalto diCastro
Montalto di Castro, Italy
9
Germany Korea
Portugal Spain
Global Footprint
© 2010 SunPower Corporation
Products
Wafer Solar Cell Solar Panel DownstreamIngotPolysilicon
SunPower Value Chain Model
SunPower OwnedSunPower JV Contract Assembly
WoongjinEnergy JV
First Philec JV
Fab 3 JV - AUO SunEnergy, Jabil, Flextronics
SunPower Fabs 1&2
SunPower Modco
12
SunPower Solar CellsHighest efficiency commercially available solar cellUp to 50% higher than conventional cellsProprietary all-back contact n-type solar cell designBy locating the electrical contacts on the back surface, SunPower achieves conversion efficiencies of up to 24.2%Positive and negative electrical contacts are made using alternating “inter-digitated” fingers that conduct current to buses on the cell edges
Cell Back Cell Front
13
Superior Performance & Aesthetics
Up to 50% more powerOr, same power, smaller footprint Uniformly black, attractive Delivers most energy/m2
SunPower customers benefit from lower electric bills, higher carbon emissions savings and a superior appearance.SunPower Conventional
14
Roof Integrated Systems
PowerGuard® T10 Roof Tile
SunPower Trackers
T0 Tracker
Downstream Product Families
Fixed Tilt Systems
SunTile®
T20 Tracker
T5 Roof Tile
15
Daily Performance Monitoring
Solar kWh outputSunlight irradiance and ambient temperatureWind speedEnvironmental savings
Residential System Monitoring
Commercial System Monitoring
© 2010 SunPower Corporation
The Cost Challenge for PV: Products to Solutions
PV and grid-parity = re-thinking PV solutions
Sunpower realizes that Incentive based markets is not sustainableSunpower is Laser Focused on Cost Reductions while maintaining its advantage
– <$1/W panel road-map has been publicly announcedCost
– Materials and Labor Cost: Equipment cost reduction, Reduce Construction/Assembly Time
– Increased Capital Efficiency Scale“Order of Magnitude” change: Changing thinking from products to End-to-End solutions
17
The Power Plant Standardization Challenge
18
23,708,160 PV power plant permutations
SunPower Oasis 1MW AC Power BlockQuick Overview
19
The SunPower Oasis power plant is a modular utility solar platform consisting of configurable 1MW PV power blocks
coupled with a sophisticated plant operating system
SunPower Oasis Power PlantQuick Overview
T0 Tracker with 425 Panel: 19.3% module efficiency coupled with optimized energy capture
Smart Inverter: features voltage ride-through, curtailment control and dynamic power factor adjustment
1
2
Standard DC Electrical: electrical and mechanical layout minimize field wiring
3
TMAC: advanced controls maximize energy production and enable efficient operation and maintenance
4
Oasis standard blocks
21
Application of Oasis blocks at CVSR
SunPower Oasis 1 MWac Power Block
22
Most installed solar tracker in the world – 300MW over 10 yearsMost kWh/m2: increases capacity factor by up to 25%Simple control system = lowest O&M of any PV power plantSunPower 400W panel has the highest efficiency in the worldStandardized BOS, pre-manufactured components = fast installation
Oasis Modular Power Plant Savings
0%
20%
40%
60%
80%
100%
Historical BOS Cost
Standardization / Volume Savings
Materials / Design Savings
Installation Efficiency Savings
Oasis BOS Cost
23
Oasis 25% Balance-of-System Savings by Category
24
24
T0 TrackerFPL Desoto – 25MW
Solutions orientation in addition to product orientation: PV industry needs smart solutions
Standardization is key to cost effectiveness and scale: Power plant is capital intensive and, at present, Sunpower is investing
Need to look at entire value chain: From EPC to O&M across power plant life cycle
2525
PORTUGAL11 MW Serpa10 MW Ferreira
GERMANY10 MW Bavaria I3.0 MW Bavaria II1.6 MW Pfenninghof
KOREA6.0 MW Samsung2.2 MW Mungyeong2.0 MW JeonJu1.4 MW Hampyeong1.0 MW Gwangju
HAWAII1.5 MW Lanai
CALIFORNIA1.7 MW Lake County1.2 MW Peninsula Packaging1.2 MW Napa Valley College1.1 MW Rancho Water1.1 MW Grundfos Pump1.1 MW North Bay Reg. Water1.1 MW Inland Empire Utility1.1 MW Chico Water Recycling1.1 MW Agilent Technologies1.1 MW Skinner Water Facility1.1 MW Gap Pacific Distr. Ctr.1.1 MW Marine Corp AGCC1.0 MW Sonoma County Water1.0 MW Applied Materials
NEVADA15 MW Nellis AFB3.1 MW Las Vegas WD
SunPower 300MW+ Global Power Plants Installations
SPAIN29 MW Naturener23 MW Trujillo23 MW Jumilla18 MW Olivenza14 MW Lorca12 MW Almodovar11 MW Magasquilla11 MW Ciudad Real9.9 MW Zaragoza8.4 MW Isla Mayor8.3 MW Guadarranque6.9 MW Caceres6.0 MW Atersa4.8 MW Llerena3.8 MW Lebrija
PG&E Contract250 MW AC CA Valley Solar Ranch
EAST COAST – U.S.25 MW AC FPL–Desoto10 MW AC FPL–SpaceCoast1.6 MW Merck1.0 MW FPL–NASA1.0 MW J & J1.0 MW QVC Network1.0 MW SAS Institute
ITALY45MW Montalto24 MW Montalto2.3 MW Toletino1.0 MW Ferentino1.0 MW Siron/Soleto
Xcel / PSCo in Construction17 MW AC Greater Sandhill
Australia1.0 MW Marble Bar
Modesto Irrigation District25 MW AC McHenry Solar Farm
Ontario Hydro20 MW AC ASF
QUESTIONS?