Valeriy V. Kharchenko All-Russia Institute for Electrification of Agriculture

1. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” “Prospects for Russian solar power business” Valeriy V. Kharchenko All-Russia Institute for Electrification of Agriculture Oslo, May 8, 2008

2. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Two directions of solar energy: 1.Thermal use of solar energy. 2. Production of the electricity byPV transformation of solar radiation.

3. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Main milestones of Russian PV history 1958 Satellite with PV solar array 1967 Multijunction matrix cell technology with voltage 10-100 V/cm2 1970 Bifacial solar cellIon implantation cell technology 1975 GaAlAs-GaAs solar cell for Moon and Venus missions1 m2, 32 kV solar array for ion plasma space engine 1980 GaAlAs-GaAs multijunction solar cell1981Compound, golographic, prism concentrator technology 1983 Grid connected 10 kW parabolic trough solar power plant 1985 Laser PV energy conversion (electric power 3.6 kW/cm2, 36%) 1987 Purification of metallurgical-grade silicon 1993 30% cascade multijunction GaAlAs-GaGeAs cell 2000 Stationary parabolic trough concentrator with concentration ratio 3.5-14 2001 Resonance single-wire electric power transmission line 20 kW, 10 kV 2002 Chlorine-free technology for silicon production 2003 Vacuum glazing with thermal transmittance 0.5-2.27 W/m2K 2004 Global Solar Power System with 24 hours round the year generation 2005 Stationary dish concentrator with concentration ratio 4-12

4. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” New project implementation 1996: Ministry of science and technology launched the programme “Ecologically clean Energy”, including the project “Creation of highly efficient silicon PV cells and modules with parameters better than 160 W/m2 and 140 W/m2, and their industrial scale manufacturing in volumes of 300 kW annually”.

5. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” SIE “Kvark” (Krasnodar) has developed original technology of PV cells and modules manufacturing with efficiency up to 16%. Industrial scale manufacturing was started at Solar Wind LTD, Krasnodar and at the “SDB of “Krasnoe Znamya”(afterward Solex Ltd).

6. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Under the auspice of Intersolarcenter, the project of organization of large-scale production of silicon ingots and wafers, silicon PV cells and modules with capacity up to 1 MW per year was elaborated. This project and its follow-up could allow to create in Russia powerful manufacturing, capable to export PV production with high parameters and competitive prices outside of Russia, as well as to facilitate the creation of an inner PV market.

7. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” PRODUCTION OF SOLAR CELLS AND PV MODULES There are a number of the companies In Russia, with the capacity to meet practically any need of the home market. Due to lack of demand for PV production within the country, the main part of production of these enterprises is exported. The reasons for such position are very similar reason, restraining use of solar collector. Today the following producers of PV production exist in Russia.

8. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” PV cell and module producers are concentrated in three areas of the country Krasnodar region Moscow region Ryazan region

9. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Share of the total volume of PV goods produced by five biggest companies Sunenergy Ltd (Moscow) 24% Solar Wind (Krasnodar) 39% RMCIP (Ryazan) 6% Telecom STV (Moscow) 12% SDB of “Krasnoe Znamya” (now Solex Ltd) (Ryazan) 19%

10. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Cell and module production (reality and opportunity) It’s clear, that limits of capacities of each enterprise are not achieved. The main limiting factor constraining extension of production PV cells, Modules and arrays is lack of silicon - main raw material for PV Industry

11. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” SILICON IN RUSSIA After split of the former Soviet Union main part of the silicon producers remained abroad. The last facility for polycrystalline silicon production at the Podolsk Chemical & metallurgic Plant (PCMP) was closed in 2003. Last enterprise for polysilicon obtaining in Russia has ceased its existence. Thereafter in Russia was not made nor one kilogram of polycrystalline silicon. The producers of monocrystalline silicon and wafers for solar cells have to buy the raw material (polycrystalline silicon) from abroad. This created barriers for producers of solar cells and modules.

12. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” The most advanced companies have begun by its own to search for Western partners, which could provide silicon for them. To this list one may refer Podolsk chemical & metallurgical plant.

13. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” At present time in Russia work on reconstruction of old silicon productions and construction of new ones in country is conducted with participation of both - states structures, and private capital. As a result of this big work in country scheduled creation several centers for obtaining of polycrystalline silicon. For resolution of the problem there were connected not only manufacturers of PV production, but also representatives of electronic and electro technical industry. It is important that the enterprises of the chemical profile take an active part in designing and construction of plants on silicon production since exactly on these enterprise there are the most suitable conditions.

14. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” The Scheme of the location of future plants on production of polycrystalline silicon

15. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Each of the plants shown on the map above is at the different position of the readiness. The plants which most closely approached putting into operation is shown below: NITOL – Silicon division is specialized on production of chlorosilines and polysilicon for solar energy. The production is located in Usolie-Sibirskiy Silicon, Ltd., Irkutsk region.

16. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” In the near years LLC Nitol Group plans to focus on development of manufacturing polycrystalline silicon for solar power. It is said by group’s general director Dmitry Kotenko to journalists. According to him, solar power is one of the most developing industries in the world. It grows 30-40% annually. For to compare, chlorine chemistry production grows 5-6% a year, D. Kotenko add. To realize project, company l use production sites in Irkutsk region – LLC Usolye-Soborsky Silikon and LLC Usolyekhimprom. In December, 2006 the group will complete reconstruction of existing production of trichlorosilane which is main feedstock for polycrystalline silicon manufacturing. Polycrystalline silicon facility is planned to be launched in the fourth quarter, 2008.

17. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Project will be financed by raised money from the second shares issue which will be in December, 19, 2006 on Moscow Interbank Currency Exchange (MICEX). The products from the facility will be supplied for external consumers, including China, general director said. According to holding’s declare, Nitol is going to occupy up to 5% of global market of polycrystalline silicon. LLC Nitol Group is managing company of the holding what owns chlorine facilities located mostly in Irkutsk region. Main production sites of Nitol are LLC Usolyekhimprom (Usolye-Sibirskoye), LLC Orgsintez (Novomoskovsk) and LLC Usolye-Sobors.

18. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” The Main engineering buildings is designed on volume of production more 1 thousand tons per annum. Designed by GIREDMET Plant of semiconductor silicon , Zheleznogorsk city, Krasnojarsk region

19. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” The Resolution of Government Moscow region 799/28 from 16.08.2006 there is approved "Investment project for creation of automated production complex on issue of the equipment for solar energy production, including creation in OSC “PCMP” own production of polycrystalline silicon, significant modernization of production of monocrystalline silicon, expansion production cut wafers, creation the new production of PV cells and solar modules of them, creation production of multicrystalline silicon.

20. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Reconstruction of polycrystalline silicon production on Podoisk chemical & metallurgical plant 1 stage 600 tons 2 stages 900 tons

21. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” Next stage of silicon technology cycle Monocrystalline silicon obtained in Institute of Physics of Semiconductors, Novosibirsk (Russian Academy of Sciences, Siberian Branch). (Processing of polycrystalline silicon) All sites are under permanent attention

22. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” The Typical feature of whole PV complex is that actually the management of all companies should like to have full closed cycle production, including all stages of the silicon obtaining and all stages of the fabrication of solar cells and modules. For example …

23. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” SiliconProducer

24. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” PV cellsandmodulesproducer

25. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” The same words we can hear from representatives of different kind of enterprises: • Producer of silicon (formerly) wants to create full technologic cycle up to PV cells and modules. • Producer of PV cells and modules want to start technologic cycle from raw material production.

26. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” SOME NEW IDEAS, APPROACHES AND TECHNOLOGIES CONCERNING PV AND THERMAL SOLARIN RUSSIA The road map for PV-industry (According D.S.Strebkov) - 20% efficiency of solar power system (SPS); - Electricity generation year-round 24 hours per day; - Service life of a solar power station is 50 years; - Cost of the installed peak power kilowatt should not exceed 1000 US$; - Manufacture of a semiconductor material (Si) for solar power should exceed one million tons per year at the price no more than 15 US$/kg; - Materials and technologies of solar cells and modules should be non-polluting and safe. Future goal: 93% efficiency solar cell

27. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” New generation of solar cell with efficiency up to 93 %, using new physical principles, materials and structures is under development. The basic efforts are directed to more full use of all spectrum of a sunlight and a whole energy of photons by a principle: each photon should be absorbed in the semiconductor with energy gap which corresponds to energy of the photon. It will allow to lower on 47 % losses.

28. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” I. Domestic aspects 1. The potential of solar energy in Russia is sufficient for large scale commercial use (PV and thermal) within the country; 2. At present degree of the solar energy use in country do not correspond to the available potential and requirements of the economy. 3. Urgency of the expansion of the RES use in Russia is conditioned by following reasons: 3.1. The centralized systems of the energy supply cover only 1/3 territory of the country. About 20 million citizens lives outside of these systems. 3.2. Beside that a half of administrative regions feel lack of energy (import the power resources from the other regions). 3.3. Natural gas is available only for about 50% of settlements. 3.4. The ecology of many regions, particularly zones of recreation, needs to be essentially improved. 3.5. The prices and tariffs on fuel and energy steadily and quickly grow. By 2013 it is planned to move Russian energy prices to world levels. 3.6. Energy is an extremely inert sphere of the economy: mastering new energy technology is at best a decennial event. CONCLUSIONS

29. International conference “Renewable energy in Russia: How can Nordic and Russian actors work together?” II. External aspects 1. In spite of the weak domestic market, a number of modern technologies, providing high QUALITY OF product are delivered for export 2. There is a significant number of enterprises In Russia, which appropriate to be used for production RES equipments and goods with foreign investors, in connection with organization of the joint-ventures looks to be efficient form international cooperation with foreign partner 3. A number of designed and being under development technologies and equipment perspective for joint activity or for issue foreign partner for independent use in their own country. 4. Formed in Russia Association of producers of the equipment for non-traditional energy stipulates the participation foreign organization, which in this case get the possibility of the penetration into Russian market and participations in joint production activity.