NEDO’s R&D for Photovoltaics Steady development of photovoltaics industry by NEDO projects

1. NEDO’s R&D for PhotovoltaicsSteady development of photovoltaics industry by NEDO projects September 2, 2013 AtsuhikoKiba New Energy Technology Department New Energy and Industrial Technology Development Organization (NEDO)

2. Japan at a glance • ・ Small island country • ・ Dense population • ・ 3rd largest economy • ・ 5th biggest energy consumption • ・ 99.7% of oil imported • ・ Energy independency is among highest • policy agenda

3. Renewable Energies in Japan • Renewable energy, accounted for 10.0% of Japanese power generation in FY2012; including 8.4% of hydraulic power. • However, the power generating costs of renewable energy are relatively still high. Comparison example of current power-generating costs in Japan Electric power generation in Japan. (100 million kWh) Yen/kWh Photovoltaic generation Wind power generation LNG-fired thermal power generation Small-size hydraulic power generation Biomass power generation Geothermal power generation Petroleum Hydro Coal Nuclear New energy LNG Source:METI

4. Changes in Electric Power Supply by Renewable Energy • Since the introduction of the RPS system in 2003, electric power supply by renewable energy doubled the amount. • Moreover, since the surplus electricity purchase system was introduced in 2009, the introduction of residential PV largely increased. • Since the introduction of the feed-in tariff scheme in 2012, the introduction of PV increased most. Long-term change in total supply from power-generating facilities of new energy except hydraulic power . (100 million kWh) PV Geothermal Wind Biomass Beginning of feed-in tariff scheme Beginning of purchasing residential surplus electricity Beginning of Renewable Portfolio Standard (RPS) System Source:METI

5. Basic Mechanism of the Feed-in Tariff Scheme • Under the feed-in tariff scheme, if a renewable energy producer requests an electric utility to sign a contract to purchase electricity at a fixed price and for a long-term period guaranteed by the government, the electric utility is obligated to accept this request. Sale of electricity produced from renewable energy sources Electric utility Those engaged in the power generation business using renewable energy sources Electricity supply Solar PV Purchase of electricity at a fixed price for a government guaranteed period Small- and medium-scale hydraulic power Payment for the purchase cost Submission of the collected surcharge Collection of surcharge together with the electricity charge Wind power Surcharge adjustment organization (organization to collect and distribute the surcharge) Electricity customers Biomass Deciding tariffs and durations, respecting the opinion of the special committee (every fiscal year) Geothermal power Decision of surcharge unit price per kWh (every fiscal year) Minister of Economy, Trade and Industry Those who generate power at home ・Approval of facilities (Government confirms whether the facility can generate electricity stably and efficiently. The approval is cancelled when the facility no longer satisfies the requirements.) Opinion on tariffs and duration Government Special committee for determination of tariff s and durations Source:METI

6. Installed Renewable Energy Capacity in Japan Source:METI

7. Basic Principle of NEDO R&D • NEDO’s roles are; • Identify technical challenges that Japanese energy policy facing. • Organize most excellent national research team involving industries, academia and national laboratories. • Implement national R&D projects and Disseminate the results of the projects. Partnership Energy Policy

8. R&D Portfolio of NEDO New Energy Technology Department NEDO’s Budget (FY2013) Total: 121.0 billion Yen (1,210 million US$) R&D Budget for New Energy: 28.1 billion Yen (281 million US$) (1 US$ = 100 Yen) Renewable Energy Hydrogen Technology

9. Progress of PV R&D in Japan Roadmap “PV2030+” 2009 2004 Roadmap “PV2030” “New Sunshine Project” completed 2000 Thin-film Si PV cells (140 yen/W), CIS PV cells Low cost mc-Si PV cells production technology (Efficiency = 17.2%, 189 yen/W) PV cell production (Japan) “New Sunshine Project” started 1993 SHARP Residential PV system technologies, basic grid connection equipment Kyocera Panasonic Production (MW) Solar Frontier Manufacturing technologies for mc-Si PV cells Mitsubishi EL 1980 Establishment of NEDO “Oil crisis” Kaneka Other 1974 “Sunshine Project” started Source : PV News

10. NEDO’s Contribution to Japanese PV Development • PV cost has steadily been decreased since 1980s • PV installations increased to 6.6 GW in Japan by FY2012 • NEDO has been contributed to the growth of Japanese PV market through R&D PV power generation system cumulative installation in Japan PV power generation system price in Japan 10 thousands Yen / W Installation Annual Cumulative BOS Module Source: RTS research report Source:IEA

11. Current PV Technology Benefits and Issues

12. PV R&D Roadmap in Japan (PV2030+) 2017 2002 2007 2010 2020 2050 2025 2030 Technological development ahead of schedule, in anticipation of mass production ~ 50 yen/kWh 30 yen/kWh Establishment of mass production framework for c-Si, Thin-film Si, and CIS PV cells Introduction of ultra-high efficiency (>40%) PV cells based on new theories and structures, adapted to diverse applications Power generation cost 23 yen/kWh 14 yen/kWh Technology innovation for higher performance, e.g., introduction of new materials 7 yen/kWh Less than 7 yen/kWh Source: NEDO PV R&D Roadmap(PV2030+), 2009

13. NEDO’s Latest PV R&D Projects • NEDO is working to further improve the efficiency and reduce the cost of commercialized solar cells such as Si solar cells and compound solar cells. • NEDO also promotes the development of innovative solar cells with the aim of commercialization after 2030. Increasing end-use applications and additional value of PV Realizing reduction of power generation cost under 14Yen/kWh toward 2020 Thin-film Si PV Compound PV Crystal Si PV Dye-sensitized PV Organic PV Efficiency improvement, manufacturing cost reduction CIS solar cell production cost reduction, application to concentrated PV systems Efficiency improvement, manufacturing cost reduction Efficiency improvement, durability improvement, manufacturing cost reduction Innovative solar cells toward 2050 Points • Development of technologies to further improve efficiency and reliability of Si solar cells, compound solar cells, etc. • Development of organic solar cells that have fewer restrictions for installation locations. • Development of ultrahigh-performance solar cells that have more than 40% efficiency with the aim of commercialization after 2050. ・Post-silicon PV ・Novel thin multi-junction PV ・Thin-film full spectrumPV

14. NEDO’s Latest PV R&D Projects FY 2020 2050 2008 2009 2010 2011 2012 2013 2014 2015 Reduction of power generation cost Under 7Yen/kWh R&D on Innovative Solar Cells High Performance PV Generation System for the Future 14Yen/kWh Solve installation restrictions Demonstration R&D for Commercial viability of Dye-sensitized and Organic Solar Cells （Under starting ）Demonstration project for PV versatility (tentative name) Demonstration

15. VIS IR Auger 2Eg Eg • R&D on Innovative Solar Cells • Target • Realizing reduction of power generation cost under 14Yen/kWh toward 2050. • Realizing Super High Efficiency PV Technologies. • Period and Budget • FY2008 - 2014 (7years) • 1.70billion yen (FY2013) Light management interlayer Quantum Structure Multi-junction solar cell Intermediate band absorption Multi-exciton Top V V Middle Bottom V

16. R&D on Innovative Solar Cells (Project Structure) Post-silicon solar cells for ultra-high efficiencies University of Tokyo Group University of Tokyo, The University of Electro Communications, University of Hyogo, Toyota Technological Institute, Nagoya University, Sharp Novel thin multi-junction solar cells with a highly-ordered structure AIST Group AIST, Tohoku University, Tokyo Institute of Technology, Tokyo University of Agriculture and Technology, Osaka University, Kyushu University, Tokai University, Kyocera, Panasonic Thin-film full spectrum solar cells with lowconcentration ratios Tokyo Institute of Technology Group Tokyo Institute of Technology, Ritsumeikan University, Ryukoku University, Tokyo university of Science, Panasonic, Sharp, Asahi Grass, Kaneka, Mitsubishi Electric Demonstration of High efficiency concentration PV Joint Research with EU Toyota Technological Institute, University of Tokyo, AIST, Sharp, Daido Steel

17. R&D on Innovative Solar Cells (Latest Achevement) June 14, 2013 Development of Solar Cell with World’s Highest Conversion Efficiency of 44.4% http://sharp-world.com/ NEDO developed a triple-junction compound solar cell in partnership with Sharp Corporation and University of Tokyo. The cell achieved the world’s highest solar cell conversion efficiency of 44.4%*1. *1 Conversion efficiency confirmed by Fraunhofer Institute for Solar Energy Systems in April 2013. (Cell surface: approximately 0.165 cm2)

18. High Performance PV Generation System for the Future • Target • Realizing reduction of power generation cost under 14Yen/kWh toward 2020. • Strengthening the competitiveness of current products. • Period and Budget • FY2010 - 2014 (5years) • 4.80billion yen (FY2013) Wafer-based Si solar cell Dye-sensitized & organic thin-film solar cell • High-efficiency technology (20% at module level) • Reduction of production costs • High-efficiency technology (10% at module level) • Improvement of durability Thin-film Si solar cell Evaluation/Recycling technologies • High-efficiency technology (14% at module level) • Improve of productivity • Evaluation of electric-generating capacity • Reliability assessment and long-life module • Technologies for recycling and reuse CIS solar cell Common components Balance of system • High-efficiency technology (18% at module level) • Reduction of production costs • Development of common components and peripheral components • Standardization

19. High Performance PV Generation System for the Future NEDO • (Project Structure) Project leader : Prof. M. Yamaguchi (Toyota Technological Institute) Project leader : Prof. K. Kurokawa (Tokyo Institute of Technology) Wafer-based Si solar cell Toyota Technological Institute Consortium, KobelcoReserch Institute, Kaneka, Namics, Crystal System Evaluation/Recycling technologies AIST Consortium, FAIS Consortium Thin-film Si solar cell PVtec Consortium, Kaneka Common components / Balance of system Sekisui Chemical, Mitsubishi Plastics, Dupont, Nisshinbo Holdings Consortium, Nano photonics Consortium CIS solar cell Fuji film Consortium, Showa Shell Consortium, Honda Soltec Dye-sensitized & organic thin-film solar cell Sharp Consortium, Fujikura Consortium, Gunze Consortium, Toshiba Consortium, Panasonic Consortium

20. High Performance PV Generation System for the Future • (Latest achevement) July 24, 2013 Development of Solar Cell with High Conversion Efficiency of 24.2% (Crystal Si) http://sharp-world.com/ NEDO developed a hetero junction back contact mono crystal Si solar cell in partnership with Sharp Corporation and Toyota Technological Institute*. * Conversion efficiency confirmed by JET in July 2013.

21. R&D on Commercial Viability of Dye-sensitized and Organic Solar Cells • Background • Interest is increasing in organic PV due to its low cost and easy installation. • Results of past projects on organic PV which can contribute to commercialization are being acquired. • Targets • To demonstrate prototype products using installation advantages (light, flexibility, etc.), power generation advantages (less angular dependence, less temperature dependence, etc.), design advantages (transparency, colorful) • Durationand Budget • FY2012-FY2014 (3years) • \1.0billion (FY2013)

22. R&D on Commercial Viability of Dye-sensitized and Organic Solar Cells • (Project Structure) Project committee NEDO Mitsubishi Chemical Corporation OPV (Plastic substrate) Sharp Corporation Fujikura Corporation DSSC (Glass substrate) Nissha Printing Co., Ltd. DSSC (Glass substrate) Hitachizosen Corporation DSSC (Plastic substrate) Taiyo Yuden Co., Ltd Bifrestec Co., Ltd DSSC (Plastic substrate)

23. R&D on Commercial Viability of Dye-sensitized and Organic Solar Cells • (Latest achevement) Independent power supply type billboard → Wall Installation type PV　↓ Sunshade PV → Design Solar Lantern 　↓

24. Summary