Renewable The Norway Singapore Energy Corporation Energy...

Renewable Energy

Corporation

Wafers

Modules

Silicon Materials

Cells

The Norway – Singapore Energy Conference

September 25, 2008

SVP Øyvind Hasaas

The Norway –Singapore

Energy Conference

25th Sept. 2008

2 Copyright 2008 Renewable Energy Corporation ASA. All Rights Reserved January 18, 2008

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for REC ASA and REC ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as ”expects”, ”believes”, ”estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for REC’s businesses, energy prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although REC ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. REC ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither REC ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

This presentation was prepared for “The Norway – Singapore Energy Conference” held on Sept 25., 2008. Information contained within will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

The REC shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.


Energy Conference

25th Sept. 2008


0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

(EJ/

Yea

r)

Oil Coal Gas Nuclear Hydro Bio Wind PV Solar - other Other

The increasing demand for energySupply of different energy sources

Unlimited renewable

source of supply

Increasingly cost

competitive

Decentralized power

source

Peak power at peak time

of usage

Environmentally friendly

Source: solarwirtschaft.deDefinition: exajoule (EJ) is a unit of energy, 1018 joules, often used as unit of measure for world annual energy use


Energy Conference

25th Sept. 2008


Global climate and energy challenges are driving the demand for PV


Energy Conference

25th Sept. 2008


Source: Metz et al.(IPCC), Frischknecht et al., EcoInvent LCA Database in Alsema, 2006

0

50

100

150

200

250

300

350

400

450

Combined CycleGas Turbine

(CCGT)

CCGT + CO2 Coal Gasification+ CO2

Nuclear Biomass Wind Solar: Present Solar: Future

Life

-cyc

le G

HG

em

issi

ons

(g C

O2-

eq/k

Wh)

Carbon based energy forms Nuclear Other renewables Solar

Environmental competitivenessGreenhouse gas comparison


Energy Conference

25th Sept. 2008


Energy pay-back time is rapidly declining

PV has a short energy pay-back time– Energy pay back times are declining as

a result of improved production processes and technology

REC’s fluidized bed reactor technology is a major contributor to the drop from 2005 to 2010 BAT (Best Available Technology).

Energy pay-back time (multi-Si systems)Number of Years

0

0,5

1

1,5

2

2,5

3

3,5

4

Late 90's 2005 AVERAGE 2010 FBR

Source: Alsema et al. (EU Crystal Clear project), 21st European PV Conference, Dresden, 2006


Energy Conference

25th Sept. 2008


REC Group Financial highlights, Q2 2008


Energy Conference

25th Sept. 2008


Highlights Q2 2008

Revenue of NOK 2,121 mill, + 27%

EBITDA of NOK 889 mill, + 10%

EBIT of NOK 716 mill, + 6%

Singapore investment (Phase I) approved

Long-term contract portfolio of NOK 49 billion

Expansion projects on schedule and cost


Energy Conference

25th Sept. 2008


REC – The most integrated solar energy companyFrom silicon and sunshine to electricity

The value of integration:– Capacity utilization

– “Control” of growth

– Cost transparency and cost reduction opportunities

– Strategic hedge towards long-term positioning across the solar value chain

Project development Assembly Surface treatment Casting and

cutting Chemical process

SystemsModulesCells

REC SolarREC WaferREC Silicon


Energy Conference

25th Sept. 2008


Key meassures to build a sustainable PV industry

Grid price competitiveness– Technology innovation and productivity improvements to drive cost reductions

– Scale to enhance lowest cost producer capabilities

– Value chain integration to ensure cost transparancy and optimalization

Stimulate market demand through capacity growth– Reliable supply of quality products

– Industry cost position is strongly tied to new and innovative capacity expansions

Develop robust market channels– Specialization and segmentation required to address customer characteristics

– Product development and differentiation balanced against today’s industry standardization

– Long-term reliable producer/distributor alliances must replace “on-and-off” relationships


Energy Conference

25th Sept. 2008


Reaching grid parity

Source: BP Solar

The cost of electricity produced from renewable installations has been steadily reducing towards that of grid parity. The aim of the Solar America Initiative is to achieve parity for solar in the USA in 2015. Note: Renewable energy costs vary with regional variations. Grid electricity costs include an estimated price rice

Time

Pric

e

GRID PARITY


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Grid parity status: 2007

0.10

0.30

0.40

900800 1 000 1 100 1 200 1 300 1 400 1 500 1 7001 600 1 800 1 900 2 000 2 100

Ave

rage

pric

e fo

r ho

useh

olds

(EU

R/k

Wh)

Insolation (Sunhours)(kWh/m2/year)

Source: Eurostat; PV Policy group; PG&E; CIA country files; Public policy Institute New York; McKinsey&Company, REC

0.20

Finland

South Korea

China IndiaGreece

FranceGermany

Japan

New York

Spain

Australia

Texas

CaliforniaHawaii

Italy

UK

California-Tier 5

NorwaySweden

Netherlands

California-Tier 4

€5 installed€3 €4 €5 €6 €7


Energy Conference

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Grid parity scenario: 2012 (illustrative)

0.10

0.30

0.40

900800 1 000 1 100 1 200 1 300 1 400 1 500 1 7001 600 1 800 1 900 2 000 2 100

Ave

rage

pric

e fo

r ho

useh

olds

(EU

R/k

Wh)

Insolation (Sunhours)(kWh/m2/year)

Source: Eurostat; PV Policy group; PG&E; CIA country files; Public policy Institute New York; McKinsey&Company, RECAssumptions: Annual increase in average electricity prices for households 8 percent

0.20

Italy

Norway

FinlandSouth Korea

China India

Greece

France

Sweden

Germany

Japan

New York

Spain

Australia

Texas

CaliforniaHawaii

UK

Netherlands

€3 installed California-Tier 4

€3 €4 €5 €6 €7


Energy Conference

25th Sept. 2008


REC 2010 technology roadmap

REC cost reduction targets (illustrative)Percent

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

World2005

Poly Wafer Cell Module REC2010

Note: The cost roadmap includes direct and indirect manufacturing costs in best plant

~50% cost reduction between 2005 and 2010 by:

– FBR feedstock

– Thinner wafers and wire

– Ingot/Wafer quality

– New cell technology

– New module technology

– Combined with continuous manufacturing improvements


Energy Conference

25th Sept. 2008


2008 status on key PV incentive programs

The solar market benefits from strong political and public support across all regions

Renewable Energy

Corporation

0.35-0.47 €/kWh IT*5.0-6.5% reduction/yLargest market

0.23-0.44 €/kWh FIT* Uncertainty from Sep. ‘08

Limited incentivesMaturing unsubsidized mkt.Target of 4.8 GW by ‘10

0.49-0.52 €/kWh FIT*Cap of 100 MW

0.30-0.60€/kWh FIT*Favoring BIPVCap of 160 MW by ‘10

Federal tax credit until ‘08RPSState specific incentive

programs, e.g. CSI

0.21 €/kWh 10 year FIT* Cap of 50 MW by ‘12

0.36-0.49 €/kWh FIT* Cap of 1.2 GW

0.40-0.50 €/kWh FIT* Cap of 840 MW by ‘10* Current feed-in tariff


Energy Conference

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The solar power applications

Off grid

Residential buildings Commercial buildings PV power plants

Home systems Water pumping Telecom Space

88 percent of market

12 percent of market

Grid connected


Energy Conference

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Growth scenario through 2011 - approved projects


Energy Conference

25th Sept. 2008


Artist impression of REC Singapore Site


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25th Sept. 2008


Growth beyond 2010 will come from Singapore

REC is ready for the Singapore project execution phase

Project split (phase 1):

– Wafers ~740 MW

– Solar cells ~550 MW

– Solar modules ~590 MW

REC will explore further expansion opportunities in Singapore

– Total area:

~ 97 ha (~130 soccer fields)

– Phase 1 + 2: ~50 ha

– Area for future development: ~ 47 ha


Energy Conference

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Energy Conference

25th Sept. 2008


REC SolarPioneer projects in Singapore

by Phoenix Solar Pte LtdFor clients:

The Singapore FreePort Pte Ltd: 11.4kWpLonza Biologics Pte Ltd: 181kWp


Energy Conference

25th Sept. 2008


The Singapore FreePort’s F1 Sky Lounge solar canopy

Rendering by Right-Space Pte Ltd


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Solar canopy offsets the Sky Lounge’s carbon emissions

First application of REC Solar modules in Singapore

Solar canopy covers approx 80% of Sky Lounge’s electricity

Phoenix Solar installed it in 2 days, and will dismantle in 1 day

The Singapore FreePort Pte Ltd will donate the system to a non-profit educational institution after the F1 event


Energy Conference

25th Sept. 2008


Phoenix Solar to install 181kWp of REC modules on Lonza-II

805 pcs REC modules = 181kWpLower roof area = 2’780m²Slope 3.6º to 16º

Rendering by RSP Architects Planners & Engineers Pte Ltd


Energy Conference

25th Sept. 2008


PV project partnership

Lonza Biologics Tuas hereby engages Phoenix Solar to design, engineer and install a 181kWp PV power plant on Lonza’s Plant-2, using REC modules

REC Solar will hereby supply its highest quality PV modules for the project

Signed in Singapore this Thursday 25th September 2008

Modulemanufacturer

PV systemcontractor

Maincontractor Customer


Energy Conference

25th Sept. 2008


Renewable Energy

CorporationThank you!!

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