The Obstacles in Renewable Energy industry, Renewable Green Leaders magazine Feb2019

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Renewable Migration Obstacles NEWS

JinkoSolar 28 Trina Solar

Vivint Solar 34

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EDITOR‘S NOTE

Several reports have shown that the global capacity of renewables has increased over the years. In BMI’s recent Global Renewables Outlook, renewable energy production is predicted to double between 2016 and 2026. Now, it’s starting to become a major force in the energy market for big companies as it made up more than half of the world’s new power generation capacity.

With a goal to achieve the Paris Agreement goals of keeping global warming below 2 degree Celsius, global insurers will more likely help achieve this goal by investing more on renewable energy instead of supporting coal-fired power plants. While nothing can be certain on today’s policies on renewable energy, the future is still bright given the recent developments of its technology.

May it bring progress on our slow but steady shift to clean energy.

Stumbling Blocks in Renewables

the installations of solar and wind farms to high construction costs, converting to renewable energy may not be possible for institutions and companies that have limited budget. However, recent developments in its technology have made capital costs cheaper compared to its cost in the previous years (or While the benefits of renewdecades). able energy make shifting more inviting, several barriers have Another obstacle renewable made the shift difficult in the energy shift faces is its market energy sector. Setting politics entry. With key players such as aside, organizations and comcoal, nuclear and natural gas panies often consider these holding majority of the energy barriers before pursuing their market power, the new technolshift to renewables. ogy offered in using renewable energy may be considered Renewable energy may have risky for most businesses. cheaper operating costs but it requires a high capital investOver the years, several rement for it to be efficient and cords have shown the progress competitive in the market. From

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and developments in the renewable energy sector. This good news threatens several renewable energy opponents, which often results to spreading reliability misconceptions about renewable energy resources.

One argument presented by these opponents is its reliability to provide enough power for nations. Contrary to these misconceptions, resources such as solar and wind are proven to be highly reliable, safer and more accessible compared to coal, gas and nuclear.

CON TENTS

COVER STORY

08 Why It Matters To Shift To Renewables

19 The Obstacles It Faces In The Market

NEWS

28 JinkoSolar Ranked Among the 2018 Fortune 500 Companies in China

34 Vivint Solar Announces Innovative Industry-First Financing Vehicle

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Accessibility On The Market

Trina Solar Chairman Jifan Gao elaborates on the PV maker’s continued steady growth in 2018

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Why Everyone N e e d s To S u p p o r t T h e S h i f t To C l e a n Energy

With the rise of demand for renewable energy, the future of industries such as oil and gas becomes uncertain - although it remains the same for renewable energy as sev-

eral companies and organizations face challenges in pursuing production of clean energy.

COVER STORY

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hings are looking up for the renewable energy sector as we enter a brand new year. Several nations have created changes to use renewables to power up homes, industries and offices. For the bulk of 2017, inspiring stories and updates were reported - creating hope to everyone as effects of global warming pose as a threat to every living being. As we start the new year, let’s take a look at what to expect in the energy sector and why it matters to get involved in this pressing matter.

This 2018, several companies across the globe want to focus on energy efficiency and fossil fuel alternatives. With the rise of demand for renewable energy, the future of industries such as oil and gas becomes uncertain - although it remains the same for renewable energy as several companies and organizations face challenges in pursuing production of clean energy.

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COVER STORY Despite the uncertainty of the policies for renewable energy under the Trump administration, demand for renewables was shown to increase and Asian countries have shown interest in converting to renewables, spearheading this important movement. Several Asian markets in India, Malaysia and the Philippines started to expand their businesses in renewables, while China was

reported to have more than 40 percent of capacity growth in global renewable energy in 2016. As several countries start to expand on renewables, others will soon follow to keep up with the increasing demand for renewable energy. Expect global renewables capacity to double in the next 10 years.

Why It Matters To Shift To Renewables Most countries have already experienced the harmful impact of global warming - from the rise in sea level to frequent occurrences of deadly storms and drought. Due to the global warming emissions brought about by several industries in the energy sector, these emissions endanger our living conditions.

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Shifting to renewable energy offers us an opportunity to save the environment and our communities as renewable energy resources produce little to no global warming emissions.

According to the US Department of Energy’s National Renewable Energy Laboratory (NREL), renewable energy can aid in the reduction of emis-

sions in the electricity sector by 81 percent.

In relation to the decrease in global warming emissions, the health of the general public will improve drastically. Pollution produced by coal and natural gas plants has lead to several health problems in several communities. These problems include cancer, neurological damage, heart attacks and other serious problems.

Another reason why the public needs to shift to renewable energy is the resources’ ability to replenish the supply of energy. While the shift is still on its early phase, studies have shown that renewable energy resources are capable of providing power for several communities. In line with this, renewable energy may require high capital cost but its low operating cost make up for it. This results to a more stable price over time.

Lastly, a shift to renewable energy gives more opportunities for companies to hire more people, thus, providing more jobs. Compared to technologies in the fossil fuel sector, renewable energy technology such as that of solar power requires more labor, making it a valuable factor in improving the economy as well.

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The Obstacles It Faces In The Market While the benefits of renewable energy make shifting more inviting, several barriers have made the shift difficult in the energy sector. Setting politics aside, organizations and companies often consider these barriers before pursuing their shift to renewables.

Renewable energy may have cheaper operating costs but it requires a high capital investment for it to be efficient and competitive in the market. From the installations of solar and wind farms to high construction costs, converting to renewable energy may not be possible for institutions and companies that have limited budget. However, recent developments in its technology have made capital costs cheaper compared to its cost in the previous years (or decades).

Another obstacle renewable energy shift faces is its market entry. With key players such as coal, nuclear and natural gas holding majority of the energy market power, the new technology offered in using renewable energy may be considered risky for most businesses.

Competing with big power players with a mature, well-established business model can be disadvantageous for industries promoting the usage of renewable energy resources.

The only way for the renewable energy industry to boom is when governments and big corporations support clean en-

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COVER STORY

ergy by investing on it.

renewable energy resources.

One argument presented by Over the years, several re- these opponents is its reliabilcords have shown the progress ity to provide enough power for and developments in the renew- nations. Contrary to these misable energy sector. This good conceptions, resources such news threatens several renew- as solar and wind are proven able energy opponents, which to be highly reliable, safer and often results to spreading reli- more accessible compared to ability misconceptions about coal, gas and nuclear.

Accessibility On The Market According to Colin Beaney, Global Industry Director for Energy & Utilities at IFS, renewables will have a huge impact on the energy and utility market this 2018. With every progress made in renewables industry,

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a huge improvement will be noticeable on its technology.

It becomes smarter and more importantly, it becomes affordable because of its lower construction, operating and maintenance costs.

What To Expect Several nations have picked up the idea of turning waste into energy, as waste becomes a major problem in managing it. With more waste produced, landfill areas are expected to widen and it’s becoming a burden to cities such as New Delhi. Now, the Indian government is starting to support plans of building a waste-to-energy plant that could help with their waste management. China has also put importance in converting its waste to energy. An example is China Everbright International’s installation of its eighteenth waste-to-energy project in the Shandong Province.

companies will be able to improve their energy production.

Storage technology will play a crucial role in the progress of the renewable energy sector in the energy market.

Another trend this year would be upgrading several aging wind farms. Given that wind energy is one of the earliest technologies used in renewables, several companies would like to ensure the longevity of the wind farms, along with improving its efficiency and operational costs. By adding energy storage to its features, these

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Shifting to renewable energy gives more opportunities

for

companies to hire more people, thus, providing more jobs.

COVER STORY

In a report published by Bloomberg New Energy Finance, it shared:

The global energy storage market will double six times between 2016 and 2030, rising to a total of 125 gigawatts/305 gigawatt-hours. This is a similar trajectory to the remarkable expansion that the solar industry went through from 2000 to 2015, in which the share of photovoltaics as a percentage of total generation doubled seven times. Eight countries will lead the market, with 70 percent of capacity to be installed in the U.S., China, Japan, India, Germany, U.K., Australia and South Korea. Energy storage, both utility-scale and behind-the-meter, will be a crucial source of flexibility throughout

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this period and will be essential to integrating increasing levels of renewable energy.

Several reports have shown that the global capacity of renewables has increased over the years. In BMI’s recent Global Renewables Outlook, renewable energy production is predicted to double between 2016 and 2026. Now, it’s starting to become a major force in the energy market for big companies as it made up more than half of the world’s new power generation capacity.

With a goal to achieve the Paris Agreement goals of keeping global warming below 2 degree Celsius, global insurers will more likely help achieve this goal by investing more on renewable energy instead of supporting coal-fired power plants. While nothing can be certain on today’s policies on renewable energy, the future is still bright given the recent developments of its technology.

May it bring progress on our slow but steady shift to clean energy.

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-end-

NEWS

JinkoSolar Ranked Among the 2018 Fortune 500 Companies in China

JinkoSolar Holding Co., Ltd. (“JinkoSolar” or the “Company”) (NYSE: JKS), a global leader in the photovoltaic (PV) industry, today announced that it is ranked 278th on the 2018 Fortune 500 Companies in China and 1st among solar manufacturers.

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Fortune China’s annual ranking of the top 500 Chinese companies in 2018 reflects the achievements China’s largest listed companies have made over the past year. JinkoSolar ranked 330th in 2016 and 284th in 2017.

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NEWS

“We are excited to see our ranking on the Fortune 500 companies in China steadily increase over the past three years,” commented Mr. Kangping Chen, CEO of JinkoSolar. “Our ranking on the list demonstrates the rapid growth we have experienced over the past few years and our leading

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position in the industry. I remain confident in the long-term prospects of the solar industry and our ability to take full advantage of our brand, technology, and global infrastructure to further consolidate our leading position in the industry.”

NEWS

Vivint Solar Announces Innovative Industry-First Financing Vehicle Vivint Solar, Inc. (NYSE: VSLR), a leading full-service residential solar provider, today announced it closed an innovative multi-party forward flow funding arrangement that includes project-level debt, a levered tax equity partnership, and the company’s first cash equity investment. The transaction provides up to $327 million in total funding commitments, with an aggregate value of approximately $410 million, which is structured to generate upfront cash margin for the company for approximately 95 megawatts of future solar energy systems. This transaction is the first of its kind in the residential solar industry that incorporates a multi-party forward purchase commitment anchored by a levered tax equity partnership.

Bank of America Merrill Lynch acted in multiple roles in this transaction, including acting as sole structuring and placement agent for the cash equity and multi-draw term loan. Additionally, Bank of America Merrill Lynch acted as the sole tax equity investor. Hannon Armstrong (NYSE:HASI) is participating as the structured cash equity investor.

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NEWS

“This delivers another landmark financing transaction for the company in 2018, and we look forward to using this vehicle to continue to accelerate solar power adoption across the country,” said Vivint Solar CEO David Bywater.

“We are grateful for the continued support of Bank of America Merrill Lynch in this transaction and the faith and trust that investors continue to place in the future

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of our business. Hannon Armstrong’s programmatic investment is a key piece of the capital structure in this transaction.”

“The cash margin provided by this vehicle for a portion of our future PPA and lease assets is an important step to increase Vivint Solar’s financial flexibility and to solidify a sustainable funding model for the business,” said Vivint Solar’s Chief Commercial Officer and Head of Capital Markets, Thomas Plagemann. “We expect similar results to selling systems directly to homeowners, allowing us to continue focusing on providing the products best suited for each homeowner.”

Vivint Solar expects to raise approximately $3.37 per watt in upfront proceeds in addition to $0.41 per watt in retained value and renewal value. In addition, the company recently closed a $50 million tax equity partnership with a new investor. This multi-party forward flow funding arrangement, together with the undrawn committed capital under Vivint Solar’s other tax equity partnerships, is estimated to provide funding to install more than 170 megawatts of residential solar energy systems.

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“Providing solutions that aid in the adoption of renewable energy is core to Bank of America Merrill Lynch’s environmental commitment. We value our relationship with Vivint Solar and Hannon Armstrong and look forward to continuing to grow the partnership,” said Omer Farooq, Managing Director in Bank of America Merrill Lynch’s Cross Asset Solutions and Strategies team.

“Hannon Armstrong is pleased to support Vivint Solar with capital to facilitate the continued expansion of their business,” said Jeffrey Eckel, President & CEO of Hannon Armstrong.

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NEWS

Trina Solar Chairman Jifan Gao elaborates on the PV maker’s continued steady growth in 2018

Trina Solar has been under the spotlight since the company delisted from the US stock market and became a private company in March 2017.

Although the majority of the players in the PV sector have recently dealt with obstacles, Trina Solar Chairman Jifan Gao recently said in an interview that, the company’s cash inventory remains at a high level.

The company sold more than 4GW of sales volume includ-

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ing modules and solar farms in the first half of 2018, generating more than 2.04 billion USD in revenue, up more than 13 percent compared to the prior year period. For the full year of 2018, it remains quite likely that the company’s total sales revenue will exceed that booked in 2017.

NEWS A sound globalization strategy reduces risk

At present, Trina Solar has expanded to 103 countries and regions globally, with offices in around 40 countries and employees that come from 38 countries. Statistics show that the Company realized over 9GW in global coverage. Mr. Gao believes that establishing a globalized business system bolsters Trina Solar’s ability to withstand market volatility; when volatility occurs in a market, other markets may provide a balance.

is to not only achieve globalization, but also gradually achieve localization. In addition to mature markets such as the US, Europe, and Japan, Trina Solar began exploring emerging markets since 2016, including those where Trina Solar has grown rapidly such as Ukraine, the Middle East, Vietnam, Thailand, the Philippines, and Malaysia. Trina Solar has achieved over 60% market share in some emerging countries, and at Trina Solar has 6 major man- least 20-30% market share in agement centers in China, Ja- others.

“Even when the market is pan, Singapore, US, Europe, at its best - both in China and and Latin America. The target

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overseas - we are still able to guarantee the supply overseas.

In 2017, Trina Solar’s overseas sales exceeded China’s sales.

From the supply point of view, overseas market contributed over 55%. This is why Trina Solar remains unruffled by the fluctuations in the market and also forms the basis for confidence in achieving annual growth as opposed to the market outlook.” Mr. Gao said.

NEWS Staying the course with a healthy cash flow Mr. Gao reveals that in the first half of the year, Trina Solar sold some solar farms. Total capacity of the farms was about 900MW. This helped Trina Solar to raise a lot of cash and effectively lower the company’s debt ratio. “Furthermore, we will still continue to provide mid-term and long-term management services to help operate these solar farms.”

now been reduced to 62% as of middle of the year, compared to 67.5% at the start of the year. Trina Solar’s cash reserves have also been maintained at a relatively healthy level. As of end of last year, Trina Solar’scash reserves were 643 million USD, and as of 30 June 2018, it had grown to 687 million USD.

ceeded 2.9 billion USD. It still has a balance of 1 billion USD. In the face of adjustments in the industry, Trina Solar can still grow with ease.

Under the robust management of Gao Jifan, Trina Solar has long established a risk management committee. “We evaluate the major risks that are forecast and provide dedAt the same time, Trina So- icated management of these Trina Solar’s debt ratio has lar’s total credit limit has ex- major risks.” Mr. Gao said.

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Stay at the top of one’s game with capacity upgrades and iterations The rise of international trade barriers is happening in total contradiction to the globalization trend of business development. Trina Solar took both into consideration when the PV maker began to sketch out plans for the globalization of its capacity a few years ago.

Following putting 1GW of cell capacity and 1GW of module capacity into production in Thailand, Trina Solar’s 1GW cell

plant in Vietnam and 700MW module plant in Malaysia have recently become operational.

The company also has module manufacturing partners in Turkey. Combined with domestic capacity, the company’s global module and cell capacity has now reached approximately 8.5GW and 8.5GW respectively.

made sure to have in place a structurally meaningful production portfolio rather than simply pursuing scale, as we need to maintain the competitiveness and leadership of our own capacity,” Mr. Gao said. Collaboration in terms of capacity with external partners must at all times be in strict compliance with Trina Solar’s quality system, including the requirements for “In terms of capacity, we material and suppliers, in order to close our capacity gap while preserving quality of product.

While planning out the structural portfolio, Trina Solar kept a focus on capacity iterations.

After an overall consideration of market supply capability and the technology roadmap, Trina Solar upgraded and transformed its capacity this year.

At this time, 2GW in capacity is undergoing a conversion to a polycrystalline high efficiency MCCE process. The company will complete the conversion to PERC and PERT of approximately 3.5GW in capacity by the end of the year followed by an additional 3GW in mid-2019, bringing the total PERC and PERT capacity to 6.5GW. Furthermore, Trina Solar is also seeking to further expand capacity while undertaking a labor reduction through automation and intelligent upgrading.

In 2010, Trina Solar had 16,000 employees managing a capacity of 1.5GW. The company’s

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NEWS

workforce has been reduced to 15,000 while capacity is being continually increased to more than 8.5GW. The company is also engaged in intelligent and integrated PV solutions and the energy internet, among other new areas of development.

The way to meet challenges is through a full-scale transformation of the business Facing the challenges of the digital age, Trina Solar is experiencing profound innovation and revolution, on both the management side internally and product side externally. Trina Solar has transformed from the previous professional manager model to a model similar to a business partnership.

Since 2017, Trina Solar has decided to aggressively drive the business units and platforms inclusive of production sectors, sales and also cover downstream solar module solutions and Energy Internet aspects.

Mr. Gao “We no longer use simple power generating modules, but by harnessing the power of data and the optimized design of the entire system, we further increase the overall efficiency.

Mr. Gao says TrinaPro as an By bringing greater value to ‘all in one’ smart solar system our customers, Trina Solar can that includes premium com- transform from a product supponents, optimized system plier to a value-add supplier for integration and smart O&M in- our customers.” terconnection. “The TrinaPro system can sense the entire Gao Jifan believes the deenvironment and calculate au- velopment of Trina Solar’s busitomatically how best to max- ness is progressing well thanks imize electricity generation. in part to TrinaPro and other TrinaPro, by optimizing the smart power generation syscombination of bi-facial solar tems. “This is the main reason From an outside perspec- module, tracking system and for Trina Solar’s growth in the tive, another example that best smart inverter, can boost up to first half of this year.” he added. showcases Trina Solar’s reform 30% the power output,” said

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directions, besides the above mentioned management systems, would be the launch in March 2018 of “TrinaPro” smart PV solutions.

PRESS RELEASE

INTERIOR & DESIGN MANILA 2019 EMBRACES RESILIENCE OF DESIGN

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he Philippine Institute of Interior Designers (PIID) in partnership with Global-Link Exhibitions Specialist, Inc. (GESI) will be holding the 4th edition of Interior & Design Manila (IDMNL) at the SMX Convention Center, Mall of Asia Complex on March 7 to 9, 2019. This year, the event will be held back-to-back with Philippines International Furniture Show (PIFS) making it a complete showcase for all design enthusiasts.

Focusing more on what the country needs, the organizers of IDMNL 2019 will implement a new theme for this year: Resilience of Design: Future Spaces.

According to Resilient Design Institute, resilient design is defined as the intentional design of buildings, landscapes, communities, and regions in order to respond to natural and manmade disasters and disturbances-as well as long-term changes resulting from climate change. “Each day is not just about the design we do for our clients, we also would like to make a difference in helping them live in a beautifully resilient home”, shared IDr. Gino Lim, Exhibit Chairman. “Resilient design should be given more emphasis not only from us designers, but politicians, engineers and city planners as well.”

“Interior & Design Manila is the Philippines’ sole exhibit curated specifically to help our lo-

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For its 4th edition, the organizers of Interior & Design Manila decided to focus its theme to what our fellow countrymen needs the most - Resilience of Design: Future Spaces. “Each day is not just about the design we do for our clients, we also would like to make a difference in helping them live in a beautifully resilient home”, shared IDr. Gino Lim, Exhibit Chairman.

The expo will run from March 7 to 9 at the SMX Convention Center, Mall of Asia Complex, Pasay City. Interested visitors may register at www.gesi.com.ph/IDMNL to secure a free 1-day visitor pass. For more information, visit the event’s official Facebook page @IDMNL. cal interior designers be updated with the latest trends and updates in the industry including the implementation of resilient design,” stated Patrick Lawrence Tan, CEO of Global-Link. “That’s why we are very fortunate to work with PIID in putting together such a meaningful event which is sure to open up countless doors of opportunities for the growth of our country’s design industry.”

The 4th edition of Interior & Design Manila 2019 will feature a pavilion of never-before-seen concepts for the modern home arranged by selected members of the Philippine Institute of Interior Designers. The expo will run from March 7 to 9 at the SMX Convention Center, Mall of Asia Complex, Pasay City. Interested visitors may register at www.gesi.com.ph/IDMNL to secure a free 1-day visitor pass. For more information, visit the event’s official Facebook page @IDMNL.

The exhibit is expected to show off a showcase of the latest trends from GRM Biowood Interiors Corp., Landlite Philippines Corp., La Casa Deco, Global Trend Building Materials Specialist, Big Pix Graphics Systems, FerCui Ventures Corp., Ashton Technologies Corp., CT-Eidiya Enterprise, Mobler Enterprises, Teresa Marble Corp., Woodcaretech Marketing Philippines, Yuyukorea.co.kr., CSI Philippines, LC5 and Mach Enter-

prises, Rich Graphix Brand, S2mit Corp., Timbermate – HMT Industries Corp., and a lot more.

Selected members of the PIID will also be presenting never-before-seen concepts for the modern home and to complete the industry experience, the organizers will also bring in an international CPD convention and workshop with prominent design gurus flying in from around the globe where dele-

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PRESS RELEASE

gates can elevate their profession- gesi.com.ph/IDMNL or Facebook al portfolio and get CPD points. page @IDMNL. For more information about the CPD Convention and Workshop, visit the official website of PIID at www.piid.org.ph. For exhibit inquiries, contact Global-Link at (02) 893 -7973. You may also visit Interior & Design Manila’s official website www.

be the biggest event, but we assure you to deliver the best design-led trade event put together in the IDMNL 2019 is also supported country and no other event even by the Chamber of Furniture In- comes close.” added IDr. Lilia De dustries of the Philippines (CFIP), Jesus, National President of PIID. Cebu Furniture Industries Foundation (CFIF), Pampanga Furniture Industries Foundation (PFIF) and United Architects of the Philippines (UAP). “IDMNL may not

The 4th Interior & Design Manila will be featuring an international Continuing Professional Development (CPD) Convention and Workshop Space where world renowned speakers flying in from around the globe will share their expertise on the latest trends and issues in today’s design industry. The conference themed Resilience of Design: Future Spaces is expected to draw in hundreds of Interior Designers to the show. For the schedule, topics, fees and further info on the said conference, visit Philippine Institute of Interior Designer’s website at www.piid.org.ph.

Interior & Design Manila will run from March 7 to 9 at the SMX Convention Center, Mall of Asia Complex, Pasay City. For more information, visit the event’s official website at www.gesi.com.ph/IDMNL or Facebook page @IDMNL.

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