Rec Solarcon Matt Daly 10 May10

Renewable REC Seeing is BelievingEnergy Corporation GROUP

SiliSOLARCON Singapore Conference 2010

Seeing is Believing

Silicon Materials May 20, 2010

Matt DalyGeneral Manager, REC Solar Asia Pacific

Wafers

ModulesCells Systems

Renewable REC Th bi i tEnergy Corporation GROUP

The big picture

SolarconSingapore

Conference2010The world needs more energy

Supply of different energy sourcesSupply of different energy sourcesExajoule2,500

N l2,000

Nuclear

Renewables

1 000

1,500

500

1,000

Natural Gas

01990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Oil

Coal

3 Business Confidential Copyright Renewable Energy Corporation ASA. All Rights Reserved

Source: The Intergovernmental Panel on Climate Change (IPCC), SRES (Special Report on Emission Scenarios), Alt. 1Definition: exajoule (EJ) is a unit of energy, 1018 joules, often used as unit of measure for world annual energy use

1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

SolarconSingapore

Conference2010Majority of the world’s population lives within the sunbelt

Definition:The sunbelt is defined as equator +/- 30°

0.0 1.0 2 0 3.0 4.0 5.0 6.0 7.0 8.0 >8.5kWh/m2/day


0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 8.5

Source: NASA Surface meteorology

SolarconSingapore

Conference2010The sun supplies “virtually unlimited” energy

e Uranium

Solar power

ergy

sou

rce Uranium

Natural gas

stoc

k of

en

Oil

Coal

Equi

vale

nt

Annual energy demandE

Fact: There is more energy delivered by the sun in one hour than what is consumed by the world’s population in one year


SolarconSingapore

Conference2010

Payback time of around one year

The energy payback time is decreasing

Energy payback time Payback time of around one year• Energy payback is the time it takes a

solar panel to generate the same amount of energy that was used to

d it

Energy payback timeNumber of years2.5

produce it

For the remaining 24 years of its guaranteed lifetime, a solar panel will b ‘ iti ’

2

be ‘energy positive’

1

1.5

0.5

1

0Mono 2005 Multi 2005 REC 2007 REC todaySource: Alsema et al. (EU Crystal Clear project), 21st European PV


Mono 2005 Multi 2005 REC 2007 REC todayConference, Dresden, 2006

SolarconSingapore

Conference2010The concept of grid parity

Pric

e

GRID PARITY

Time2010


Source: BP Solar

2010

SolarconSingapore

Conference2010Solar energy is produced near the point of consumption

DISTRIBUTIONDISTRIBUTION

Power plant High voltage grid Transformer Low voltage grid Customer

The price of electricity includes generation cost as well as transmission cost

Solar energy can be produced near, or at the point of consumption

Price comparisons should therefore be determined at the point of consumption


SolarconSingapore

Conference2010Exeptional growth in installed capacity

Global cumulative PV power installedGlobal cumulative PV power installed

14 000

16 000

12 000

14 000

8 000

10 000

MW

4 000

6 000

0

2 000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Global market outlook for photovoltaics until 2013, EPIA

SolarconSingapore

Conference2010Production volumes drives cost reductions

Historical module learning curveHistorical module learning curve

100

SD/W

p 1980

10

dule

pric

es U

S

1990

2000

PV M

od

2006

1

0 10 1001 1,000 10,000 100,000

Cumulative Module Production (MWp)


SolarconSingapore

Conference2010PV demand forecast

GW Demand

25 0

30.0 28,0

20.0

25.0

Hi h15 0

21,0

10.0

15.0 HighLowREC estimate

7,3

13,115,0

6.0 8.4 8.9 10.6 12.7

0.0

5.0

9-10 GW 12-13 GW 16-18 GW 22-24 GW REC Estimate

2009 2010 2011 2012 2013

11 Business Confidential Copyright Renewable Energy Corporation ASA. All Rights ReservedSource: Barclays Capital, Commerzbank, Deutche Bank, Marketbuzz, UBS

All estimates published January to March 2010

SolarconSingapore

Conference2010Investor returns remains relatively high

2009Equity IRR*

30 %

20112010Percent

Significant increase in equity returns from 2009 to 2010

20 %

25 %

Even with announced cuts in tariffs, 2011 equity returns are expected to be above hi t i l l

15 %

historic levels

5 %

10 %

0 %Germany

(PP)Germany

(Res)France (BIPV)

California (Com)

Italy(Res)

Italy(PP)

California (Res)

Source: REC estimates


Source: REC estimates

Renewable REC Ab t RECEnergy Corporation GROUP

About REC

SolarconSingapore

Conference2010REC – an integrated PV company

REC SolarREC WaferREC Silicon

Chemical process Casting & cuttingCell

Surface treatmentModule

AssemblyProject

development

Presence across the solar value chain createsPresence across the solar value chain creates strategic opportunities

Competitive positions improved through:

Transparent cost structure

Technology development & synergies

Applying best practices


SolarconSingapore

Conference2010A history of growth

8 191

9,1569,000

10,000Start production in ScanCell

Aquired ASiMI

NOK million

6,426

8,191

5 000

6,000

7,000

8,000Start production in ScanModule

AquiredSiTech

1 270

2,454

4,334

2,000

3,000

4,000

5,000 Start production in ScanWafer

Established Solar Grade Silicon

0 10 25 50 159 432 7131,270

0

1,000

,

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Capacity expansions


SolarconSingapore

Conference2010REC Silicon

Proprietary deposition technology REC Silicon produces silicon materials

for the electronics and the photovoltaic markets

Proprietary deposition technology –Fluidized Bed Reactor (FBR)

REC Silicon is a large player in the global silicon materials industry– Largest silane gas producer– Third largest polysilicon producer– Largest producer of high purity float zone

(FZ) polysilicon

Proprietary REC technology Energy efficient – 10% of Siemens energy usage Continuous productionp Lower cost Granular polysilicon is easy to handle


SolarconSingapore

Conference2010REC Silicon – Moses Lake

Strong position in growing markets for Polysilicon and Silane

Proprietary FBR technology with lower energy consumption and better form factors

Strong growth in production from 8 000 MT in 2009 towards 17 000 MT in 2012

Experienced organization with 25 years of know-howy

Photo: REC production plant Moses Lake


SolarconSingapore

Conference2010REC Wafer

Lowering our silicon consumption and A leading producer of multicrystalline

wafers for the PV industry

Lowering our silicon consumption and improving the solar efficiency of our products

Aiming to strengthen the position in the monocrystalline wafer segment

Industrialized mass production according to lean manufacturingaccording to lean manufacturing principles

Thinner wafers Thinner sawing wire New furnace technologygy Proprietary technology in each process step


SolarconSingapore

Conference2010REC Solar

Investing in proprietary technology and A fast-growing producer of solar cells

and solar modules

Investing in proprietary technology and process improvements

Involved in solar systems integration in selected segments of the market

Strategic ambition is to develop into a leading global solar cell and moduleleading, global solar cell and module manufacturer, as well as project developer within selected segments of PV systems

Highly automated processes Increasing conversion efficiency Operational excellencep Economies of scale


SolarconSingapore

Conference2010Manufacturing facilities and capacities

Narvik, NORWAY

Moses Lake USAGlava, SWEDEN

,

Cell plant ~180 MW capacity

Glomfjord, NORWAY

Multicrystalline wafer plant ~320 MW capacityMoses Lake, USA

g p y

Polysilicon (Siemens & FBR)plants ~13 500 MT capacity Silane gas capacity ~21 000 MT

Module plant ~150 MW capacity

320 MW capacity Monocrystalline wafer plant

~300 MW capacity

Herøya, NORWAY

Wafer plants – totalling ~1 1 GW capacityButte, USA

Tuas View, SINGAPORE Polysilicon (Siemens) capacity ~3 5 00

MT. Silane gas capacity ~7 500 MT

Wafer plants – totalling 1,1 GW capacity

Wafer plant ~740 MW capacity Cell plant ~550 MW capacity

M d l l t 590 MW it Module plant ~590 MW capacity


SolarconSingapore

Conference2010Doubling the size of the company

REC Silicon REC Wafer REC SolarREC SiliconMT

REC WaferMW

REC SolarMW (modules)

20,000 3,000 800

15,000

2,000

600

10,000 400

5,000

1,000

200

02009 2011

02009 2011

02009 2011

Production Capacity Production Capacity Production Capacity


Production Capacity Production Capacity Production Capacity

SolarconSingapore

Conference2010REC production plant – Singapore

W f 740 MWWafers ~740 MWCells ~550 MWModules ~590 MW

The construction project is >90 percent complete

CAPEX at completion estimated at € 1.4 billion – 22% below initial estimate

Excellent safety record for construction project with > 17 million man-hours

Photo: REC production plant Singapore


SolarconSingapore

Conference2010

“I'd put my money on the sun and solar“I'd put my money on the sun and solarI d put my money on the sun and solar I d put my money on the sun and solar energy. What a source of power! I hope energy. What a source of power! I hope we don't have to wait till oil and coal runwe don't have to wait till oil and coal runwe don t have to wait till oil and coal run we don t have to wait till oil and coal run out before we tackle that.”out before we tackle that.”

Thomas Edison to his friends Henry Ford and Harvey Firestone (1931)Thomas Edison to his friends Henry Ford and Harvey Firestone (1931)


Rec Solarcon Matt Daly 10 May10

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