ASIA’s SOLAR VALLEY in CHUNGBUK November 15, 2011
I
Contents
World PV Industry
II PV Industry of KOREA II III PV Industry of CHUNGBUK IV Incentives for Foreign Investors
I. World PV Industry • PV Market Share of Major Countries
EUR
US
Others
CHN
Source: Mirae Asset Securities (2011)
JPN
CHN/US Rising
I. World PV Industry • Global Cell/Module Manufacturers
Source: Solar & Energy (2011)
충북기획단의 요즘 고민은?
II. PV Industry of KOREA 2.1 2.2 2.3
- Population : 50 million (2011) - GDP Ranking : 15th (2010 by IMF) - Global Trade Ranking : 8th (US$ 728 BLN in 2007) - Expected GDP Growth Rate: 4~5% - OECD member since 1996 Source : Korea Statistical Information Service
World Ranking - TFT-LCD· · · · · · · · · · · · · · · · · - Memory semiconductors · · · · · · · - Shipbuilding · · · · · · · · · · · · · · · - Info and Comm Technology · · · · · - Steel production · · · · · · · · · · · · - Automobile production · · · · · · · · - Comprehensive national power · · ·
1st 1st 1st 1st 5th 6th 9th
2.2 PV Industry Policy of Korea Â
<Domestic2004 Market> 2005 Installation
6.8M W
2.6MW
<Source: KEMCO>
<NRE Output> 2005
2006
2007
2008
2030F
22MW 48MW 278MW 3.5GW
2006
2007
2008
2009
Solar
14,399
31,022
71,279
284,315
566,191
Wind
129,888
238,911
375,641
436,034
685,353
3,674,015 3,468,233 3,632,089 3,070,457
2,821,530
Hydro-Electri c Bio Gas LFG
-
-
-
3,363
6,814
129,595
154,521
307,299
412,996
448,728
3,899,369 4,394,830 4,227,476
4,617,886
Total <Source: KEMCO>, Unit:3,950,000 MWh
II. PV Industry of Korea • Solar Industry Growth Index 2007 Sales (million$)
Export (million$)
Employment Source
2008
2009
2010
2011
440
1,548
2,376
5,899
10,423
202
1,029
1,521
4,071
6,669
1,283
3,620
5,587
9,264
11,807
MKE Solar&Energy
MKE Solar & Energy
Korea MKE Renewable Solar&Energ Energy y Association
II. PV Industry of Korea â&#x20AC;˘â&#x20AC;&#x2C6; Recent Foreign Investment Investor
Invested
Saint-Gobai Hyungdai Avancis n (Chungbuk) (France) SunEdison (USA)
Field
Details
Cell/Module
USD353million by JV Avanci s for thin-film solar cell
Busan Port Authorit System Inst 400MW solar power system y allation (Gyeongbuk)
Dow Cornin Korea Dow Corning Material g (Chungbuk) (USA) MEMC (USA)
Samsung Fine Che Polysilicon m (Ulsan)
USD10million to build Solar Power Tech Center USD20million to produce 10 ,000tons polysilicon
2.2 PV Industry Policy of Korea National Strategy of “Green Growth” Top 7 Green Leaders by 2020 4 Visions / 10 Tasks Low energy consumption/low carb on Energy source unit : 0.347 0.185
Improve energy efficiency Streamline energy market & price system Cope with climate changes
Green Energy for Growth Drive Energy tech level: 60% highest in the world
New/Renewable Energy New/renewable energy: 2.4% 11% Nuclear power facility : 26% 40.6%
Expand new renewable energy Improve the safety of nuclear power
Self-reliance of Energy Self-sufficiency: 3.2% 40% Energy poor group: 7.8% 0%
Develop tech & infra for green energy
Develop overseas resources
Expand overseas markets
Stabilize energy supply Enhance energy welfare
충북기획단의 요즘 고민은? III. PV Industry of CHUNGBUK 3.1 3.2 3.3 3.5
3.1 CHUNGBUK
(Delaware-6,452㎢)
3.1 CHUNGBUK
Sejon g
Cheongju International Airport
Gateway to Sejong Admin Capita l Hub airport to China and Japan
Who invested in CHUNGBUK?
3.2 PV Infrastructure of CHUNGBUK â&#x20AC;&#x153;Solar Industry Special Beltâ&#x20AC;? in April 201 1 Semiconductor
60 companies including Hynix, Dongbu Hitec, MagnaChip, Semitech, Nepes, Terrasem Testing center for semiconductor equipment/parts Electronic Information Component Center
Supporting Agency
Korea Basic Science Institute Environment-friendly Energy Parts & Materials Center Next-Generation Battery H/R Education Center
Manpower
Semiconductor R&D H/R Education - Chungbuk Univ, Chungju Univ, Cheongju Univ Semiconductor Equipment Operation Education - Chungcheong Univ, Juseong Univ Chungbuk Provincial College
60% of Domestic Cell/Module Production Dayou DMC
Investment: 120 mil USD
Cell/Module
Investment:1200 mil USD
Haesung Solar
(1 billion USD total) Polysilicon Cell/Module
Cell/Module
오창
Module Cheongju Airport
Investment: 200 mil USD Polysilicon Cell
KISCO
PV Inverter
Investment: 450 mil USD
Sehwa Energy PV System
Techwin PV System
Thin film Cell
A‐One Tech
Investment: 316 mil USD
Cell
Hyundai Avancis, JV of Saint‐Gobain and Hyunda HI in Ochang IT Complex → Totally 2 billion USD invest
ment with its 2nd Production Line → Largest investment in Korea in PV parts
Businesses by Value Chain Basic Materials Poly‐silic on Profit Ra tio
35% • Dongyang Chemicals
Com
• KCC
panie s
Feat ures
• High invest‐ ment • Technical barriers
Unit/Module
Ingot/ Wafer
10%
Cell
15%
Module
10%
System/Service Production Sy stem
Facility
4%
5%
• Dass Tech
• Tech One
• Siltron
• Hyundai Heavy Ind • Hyundai Heavy
• Woongjin Engy
• KISCO
• KD Solar
• Big Tech
• KD Solar
• Smart Ace
• Shinsung ENG
• Haesung Solar
• Paru
• KEPE
• SKC
• A‐One Tech
• LS Industrial
• Willings
• Symphony Engy
• KPE
• Moin Energy
• Hanyang Elec
• Solar Tech
• Mili Solarnet
• Symphony Engy
• Eagon
• Differentiated technology (high efficiency/ low price) • p‐Si stable supply
• Non‐conformity ratio • Product uniformity
• Inverters
• A/S
• Cables
capability
• Securing value chain • Minimizing loss
※ Companies in blue: Head offices in Chungbuk
Specializing in cell and module fields (60% of national production)
3.2 PV Infrastructure of CHUNGBUK
3.3 Asia Solar Valley Project
Designated on April 2011 by MK E Cheongju·Cheongwon(System) Jungpyong·Jincheon(Cell/Module) Eumsong·Chungju(Silicon/Wafer)
Districts Area
12,497 thousand㎡
Period
2011 ~ 2015 (5years)
1.5 billion USD
Budget
21
Asia Solar Valley Project
• Location
: Jungpyong, Chungbuk
• Scale
: Land 33,000㎡, Building 9,600㎡
• Period
: 2011~2015 (5years)
• Investment : 42 Million USD (Central Gov. 25M$ / Local Gov. 10M$)
• R&D and Equipment support for next generation solar cell technology development • Technical support for certification & test for solar cell & module • Manpower training & Academia-Industrial Cooperation 22
Asia Solar Valley Project 3. Training Network for Manpower Supply Network
Local
Governments, Chungbuk TP, Colleges
Period
2011
~ 2015 (5years)
Budget
20
million USD
Support for R&D Workforce
23
Asia Solar Valley Project 4. R&D Support for High Efficiency and Low Cost `` Network
Chungbuk,
Period
2011
Budget
20
Chungbuk TP, Colleges, Business
~ 2015 (5years)
million USD
Technology for Low Price DSSC
24
Asia Solar Valley Project 5. Green Village , the Experiential Space Period
2012 ~ 2015 (4years)
Scale
21 Villages of 630 Households
Budget
30 million USD
25
Asia Solar Valley Project 6. International Solar Expo
Theme
- Chungbuk, Land of Life and Sun -
Period
October(36 days), 2014
Budget
30 million USD
26
Asia Solar Valley in CHUNGB UK Visions and Goals The hub for PV parts and materials Distribution
Clustering Attract related businesses Free Land for investors
Implement pilot projects Various PV Promotion Projects
Manpower
Infrastructure
Support labor force demand Support R&D demand Re‐training on‐site workers
Solar‐cell Technology Center PV Industry Cluster
R&D Develop next generation tec hnology Expand central/local budget
Networking Academia / Industry Cooperation PV Energy Promotion Committee
충북기획단의 요즘 고민은? IV. Incentives for Foreign Investment 4.1 4.2 4.3 4.4
Tax Benefits Eligibility : over USD 30 million investment or USD 2 million in R&D
National Tax
Local Tax
Corporate Tax / Income Tax
100% 5yrs 50% 2yrs
Customs Tariff, V.A.T, Special Excise Tax
100% 3yrs
Acquisition / Registration / Property Tax
100% 7yrs 50% 3yrs
Additional benefits available for R&D: refer to the R&D section
Subsidies
Usage
Hiring
Training
Qualification
Amount
More than 20 new local employees
500 USD
Newly hired local employees
500 USD
â&#x20AC;ť 20 at minimum
Period 6months
(person/month)
(person/month)
Each subsidy limited to USD1 million per company
6months
Cash Grants Investment Area
Qualification
(over 30% of FDI)
Industry supporting service
USD 10 million in new factory construction
Parts and materials
USD 10 million in new factory construction
R&D
Over 10 full-time researchers with master's degree or bachelor's with 3 year experience
High-tech business
Eligibility : Foreign direct investment ratio over 30% Amount : more than 5% of FDI (negotiable) Usages : hiring and training, land purchase 路 lease, construction costs, equipment purchasing/installation, capital goods
Project Manager
Thorough assistance from site selection Administrative procedures Consult on FDI incentives Meeting arrangement with authorities
to Marketing and Commercialization
Chungbuk goes together with you!
Contact: Jungmee Sohn Investment Promotion & Business Support Chungcheongbuk-do, KOREA 82-43-220-3233; jmsohn@korea.kr