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The last few years have thrown many curves in the way of manufacturing and to no one is this more apparent than those involved with solar photovoltaic. With Feed-in Tariffs coming and going and PV manufacturing spreading from Europe to Asia and the USA, it appears that there is no end to this wild ride in sight. Luvata, is an early pioneer of the photovoltaic industry; one that has seen and followed the twists and turns and even managed to innovate and grow both its products and processes. In this frank interview, Michael Nordgren, Managing Director of Luvata’s Pasir Gudang, Malaysia facility, gives his views on the progress of PV manufacturing in Asia and the keys to success when riding the business rollercoaster.

PES: Luvata is now manufacturing solar ribbon in Europe, Asia and the USA. Could you tell us a little bit about the ribbon manufacturing in Malaysia?

MN: Luvata has been manufacturing solar ribbon, branded Sunwire, for many years in Europe, however it wasn’t until 2008 that Luvata decided to expand its Sunwire manufacturing capabilities to Malaysia and the USA. Sunwire is used as both an interconnecting ribbon and a cross-connecting ribbon on PV panels.

Malaysia has not traditionally been known for its high-quality manufacturing base and as a result we’ve had to convince several customers that high quality Sunwire could be manufactured in Pasir Gudang as well.

Luvata’s Michael Nordgren talks to PES about keeping pace with technology, demand, politics and sunshine – on a global scale.

All aboard the PV express

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We’ve not been shy about the built-in quality control of the fully automated and proprietary machinery used to manufacture Sunwire, along with the dedicated, stand-alone facility that Luvata maintains in Malaysia; and customers have begun to understand our commitment to quality.

PES: What are PV module manufacturers looking for in terms of a solar ribbon manufacturer today?

MN: There are two parts to that answer – products and services. Let’s deal with products first.

The need for consistent quality, cost-competitive technology and reliability are always fundamental expectations of PV module manufacturers, but the technology has to satisfy conflicting needs. In recent years, the silicon cell thicknesses have been reduced to save material costs. This can make the cells extremely fragile and therefore Sunwire must be softer to prevent them from cracking during manufacture. However, increased electrical efficiency of the cells requires a greater copper cross section, but not at the expense of width, which shadows the cell. So, our wire has been made thicker, but that increases the stiffness again. So we’ve been working on straightness and yield strength to produce perhaps the softest wire on the market today.

In addition, as the automation and efficiency of PV module manufacturing gets better, there has been demand for larger spools. Historically spools of Sunwire have been four to five kilograms and today we see some PV module manufacturers looking for 10 to 15 kilogram spools. Larger spools help improve production efficiency and reduce manufacturing costs. With our proprietary technology, we are delivering all three: softer, thicker wire on bigger spools.

Solutions is an area in which I see our role growing as a solar ribbon provider – helping PV module manufacturers with their product development. This may involve running trials, testing and certification or simply offering new ideas or solutions to overcome a production or transportation challenge.

As an example, standard Sunwire thickness dimensions range from 0,080 – 0,500 ± 0,007 and widths (mm) from 1,000-6,000 ± 0.08, but that may not be what the customer needs. One very important aspect is listening to our customers and giving them exactly what they need or want, which may or may not be an “off the shelf” product. We

don’t just aim to supply but to help in the design of the bespoke solution.

So, my philosophy is not just keeping pace with the technology, but we also need to keep pace with the strategic plans and locations of our partners. We must also be able to transfer our knowledge and technology to other parts of the world quite quickly, and get the exact same results.

PES: What do you see happening to the PV industry in Asia over the next few years?

MN: Although the industry is still somewhat fragmented today, we anticipate customer concentration and consolidation and a shift towards fewer players. We also see an over capacity in PV module manufacturing, perhaps more so than with PV components. So, over the next few years we expect to see some consolidation within the PV module manufacturing industry to counteract any short-term over capacity.

As economic situations continue to improve in Asia, their people are demanding a higher quality of life. This will lead to rising energy demands from an additional 3 billion people. It emphasizes the need for Asia to diversify its energy sources. This situation, combined with an average exposure to sunlight (10 year average) of 4.76 kWh/m2/day, provides a compelling argument for PV in Asia.

This situation combined with the PV expertise and capacity now available in Asia presents a promising long-term outlook. We still have hurdles to overcome, including funding and investment, but I believe the PV

industry will continue to make incremental energy efficiency improvements and, over time, the price of panels will continue to go down, eventually reaching grid parity and a more sustainable future for all.

PES: Government feed-in-tariffs, tax credits and incentives have played a key role in the success of PV in Europe; however the recent uncertainty has taken its toll. What role do you see governments playing in the future of PV?

MN: Yes, the success of PV to date is largely a reflection of the PV module installation boom. It began in Europe in 2000, when Germany introduced feed-in-tariffs (FITs) for PV module installations and several other European countries followed suit. Unfortunately the future of FITs in Europe is less than certain. However, I believe that the recent focus on the nuclear aftermath from the earthquake and tsunami in Japan along with Germany’s decision to shut down its 17 nuclear power plants over the next ten years will continue to drive support for safer ways to generate energy.

Recently the Asian Development Bank (ADB) said it would initiate the Asia Accelerated Solar Energy Development Fund with USD 2.25 billion, focusing on solar power projects in countries such as China, India, Pakistan, Uzbekistan and Thailand. I think that governments, banks and investors across the globe will continue to play a critical role in encouraging the investment that will bring this renewable energy nearer to grid parity. Some governments may continue to

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embrace Feed-in Tariffs while others may find less financially burdensome ways to entice private investment in clean renewable energy. Regardless, I believe governments or investors will be a determining factor for the near term.

PES: The competition between competing technologies has intensified over the last few years. How does this impact Luvata’s solar ribbon?

MN: Sunwire is compatible with both thin-film technology and crystalline silicon. Thin film modules require less Sunwire compared with the crystalline. The efficiency of crystalline modules however, still exceeds those using thin-film technology and therefore there hasn’t been a significant change over the last few years. The industry is still about 80 per cent crystalline and 20 per cent thin film technology.

I think the competitive spirit within the PV industry is a good thing and I don’t see it ending anytime soon. The passion and determination to find better solutions, in addition to the emerging needs, has propelled much of the progress within the PV industry to date and if anything, the competition is intensifying. This is good news.

PES: Some believe that the balance of supply for PV components now exceeds demand. What does Luvata see happening in the market place?

MN: The recent turbulence with FiTs combined with the additional added capacity may have resulted in some over capacity, but I believe this to be a short-term situation. We haven’t begun to scratch the surface in living up to the potential of PV and although there are many challenges, or opportunities as we call them, the long-term outlook for PV component manufacturers looks very bright.

PES: Do you think Luvata is living up to the PV industry’s commitment of responsibly producing clean solar energy?

MN: Yes, I do, although I also think we can do more. If we believe in a more sustainable future, we have to do all we can to “walk the talk” with our strategy. Our offering is extremely energy efficient, lead free, and made from materials that are 100 per cent recyclable. We have positioned our manufacturing facilities to be close to our customers – in Europe, Asia and North America. This reduces transit times and saves money and energy involved in long-distance shipping. Simply, we produce it

in the most efficient manner and where the product is most needed.

I’m confident that we will find even more opportunities to improve in this regard. Often the drive behind our ideas or products relates to energy efficiency, power generation and distribution or conserving energy, and I believe we will continue to improve.

PES: What challenges do you see ahead for the PV industry?

MN: To date, the industry has been able to respond to the need to develop clean energy with government support. We anticipate that government assistance, in the way of feed-in-tariffs, tax cuts and incentives, may decline and therefore other investment may be necessary before we reach grid parity. At the moment, I see this as the single biggest challenge to the success of PV in Asia.

I also believe there may be some isolated challenges related to tying into grid systems or existing grids being able to handle the increase, but these are just small bumps in the road.

For several economies, the success of renewable energy including PV may rest with the investment to generate jobs, more so than generating energy, regardless this would still be positive news for PV.

PES: Luvata is involved in many different industries besides photovoltaic. Can you tell us a little bit more about the Luvata Group?

MN: Luvata is a world-leader in metal fabrication, component manufacturing,

and engineering and design services for everything from zippers to MRI machines and from air conditioners to, yes, photovoltaic modules. We have statistics such as being the world’s biggest coils-and-coolers supplier to the world’s HVACR industries, and the world’s leading manufacturer of resistance-welding electrodes and superconductors, but I think it’s perhaps easier to say that we’re problem solvers, making more different products, for more different industries and in more places than any other company of its sort.

Creating lasting partnerships has always been our strategy. We aim to understand our customers’ challenges and to deliver solutions that bring improvement to their products and processes. It’s about commitment, collaboration and continually exceeding expectations.

For more information, please visit: www.luvata.com

“It’s about commitment, collaboration and continually exceeding expectations”

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Connections in the SunSunwireTM is the flattest, straightest, softest wire for even the thinnest and most delicate silicon cells.

Produced in America, Europe and Asia and delivered wherever the sun shines.

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