1. CIGS Solar Powered Power Supply and Develop Applications Participating Company : K&K Solar Inc. Project Director : Dr. Jin-ho Park

2.  Objectives and Summary of Technology Development  Technology Development Plans  Company Capabilities  Contents of Technology Developments  Results of Technology Developments  Expected Effecs and Feasibility

3. CIGS Solar powered PSU(Power Supply Unit) and developing solar applied products National Energy Strategy Kick-start to reduce greenhouse gas emissions Unstable Energy Market Exhaustion of fossil fuels Expansion of Renewable energy market  Self-sufficient new energy  The rise of new growing industry New renewable energy Main Devel opme nt Object ives Expensive silicon solar cell power Replace with CIGS Thin film solar cells Efficient power storage and control Connect with high efficient LED equipment and controllers Build an integrated system Applications - Provide power for Vulnerable areas - Solar powered LED street lights - Portable power supply - Indoor farming *ISET-K&K Solar-Yeungnam University MOU

4. Participating Researchers Milestones Directing Institute: Dr. Jin-ho Park(Project Director) et al., one doctoral program student, one graduate student, one undergraduate student Analyze International and domestic related technologies, evaluate the performance and find improvements of solar cells and the light source and study the design of power supply systems Participating company: Young-sik Kim (President of K&K ), Vincent Kapur(Executive) Design CIGS Thin film solar cells, prototype design engineering and assembling, installation and maintenance and high-volume manufacturing Development Details Plan/Result Detail Milestone(Year,Month) 11.78910111212.12345 Remarks Planning and Collecting Data Plan Result Establishing Development Direction Plan Result Purchasing Materials Plan Result Pilot production Plan Result Reliability Test Plan Result System Improvement according to Business Plans Plan Result System Security, Inspections and production start Plan Result

5. Work Responsibility Conducting InstituteMain responsibilities Shares in Technical Development(%) Directing(main) Institute ◦ Research and Development (R&D) and Test - Researchers and facilities supports - Performance tests for each part - Collecting and Organizing data 60% Participating Company ◦ Manufacturing trials and Establishing test equipment - Market Research - Design and Assemble - Performance Test 40% Results ◦ Developed solar cell applied power supply system - Pilot production and Conducting performance test - Production start 100% Main Technical Development Plans NEXT CIGS(CuInGaSe 2 ) Thin film solar cells crystalline silicon solar cell Power Develop customized environmentally friendly power supply systems and applications LED street lights LED light source for indoor farming Applications

6. ISET’s new development, nanoparticle ink applied CIGS thin film solar cells - need less raw materials and simple manufacturing process (manufacturing cost: less then $1/Watt) - high economic feasibility compared to existing silicon solar cells K&K Solar Inc.’s Integrated application system -Enable to develop reliable applications through maintaining close relationships with raw material suppliers Technical Development Research Plans Plans for Utilizing Business Experiences K&K Solar Inc. & ISET Develop and Install integrated traffic control systems Develop and Manage electric control systems for government offices with Technical skills Develop integration systems connected to solar powered controllers Applying participating companies’ technical skills to the business Utilizing researchers’ analytical skills Constant technology development plan by securing the workforce Joint Technology Development

7. Test Facilities 1, Street lights with composite solar cell power supply system 2. LED Indoor farming 3. Test Facility Plan for Technology

8. Next Generation CIGS Thin Film Solar Cells Non-vacuum nanoparticle solution-based process for CIGS modules(ISET) used for this new technology development Group I-III-VI chalcopyrite compound semiconductor, direct transition type energy band-gap The highest absorption coefficient of about 1×10 5 cm -1 and a thin layer of1~2 ㎛ enable to produce high- efficiency solar cells low-cost and high-efficiency solar cells to improve economic feasibility significantly Build up long term reliability of solar cell efficiency which will never change in 10 years Single junction CIGS thin solar cells with the band gap of 1.2 eV reached the highest conversion efficiency of 20.3 ％

9. Features of Test Facilities of Composite Solar Battery Power Supply System  Use optimized and economical CIGS thin film solar cell modules custom-designed for the battery capacity which will be used for the product development.  Apply blue ocean market strategies to target a niche market that is not other solar-related companies’ first priority, and product development concepts  Solar-powered LED lighting systems can become more popular than other large-scale solar farms and they provide more competitive Renewable Portfolio Standard (RPS) solutions.  Additional Finance incentives are available with carbon offset credits acquired by replacing diesel generators with this PV system.  Enable customers to use the system practically by offering customized customer service instead of just selling PV panels to them.

10. Technology Development Process Contents/DatesDescriptionsRemarks Yeungnam University & K&K Solar Inc. Technology Development Strategy Conference ( July 7, 2011) -Review business details and decide division of labor -Discuss equipment for product development and design plan -Find component suppliers -Confirm the timeline Meeting with component suppliers (October 12 – November 30) - Design(modify) equipment for product development and make trial products Received CIGS modules (November 23) -Received testing CIGS (ISET) modules -Received some components Inspecting components and discussing installation plans (December 1) -Decide locations for PV modules - Discuss operation plans for he street lighting system -Decide wiring plans Complete electrical wiring (December 2) - Wiring work according to the plan for PV modules on the roof of a CRC center

11. Technology Development Process (cont’d) Contents/DatesDescriptionsRemarks Set up street lights and PV modules (December 13) - Install PV modules - Install street lights and control panels - Build an operating system Check operating conditions of the equipment and improve (December 20) -Test electricity consumption of PV power generation and street lights -Check conditions of the operating system Received the indoor farming showcase (January 3, 2012) - Indoor farming separate test - Discuss plans for the Grid- connected PV system with commercial power source Test according to the business plan and improve the system (January – May 31) - Conduct the performance test depending on weather variables - Test the grid connected system - Inspect operating errors

12. Block Map of Development System LED street lights and indoor farming are controlled by PV cell operation and generated power from PV cells, and consumption measuring system The lightings can set the program to change operating time based upon daylight hours of seasonal variations In case of indoor farming, it optimizes the growth of plants by setting up a timer to control operating hours of LED lights for the perfect condition of plant growth real-time monitoring data

13. Solar-powered Street lights configuration Solar-powered LED indoor farming Configuration TypePV modulesControllerBattery LED lamp CIG S 48 W CIGS module 7 EA MMPT(Maximum Po wer Point Tracking 12V 100Ah 2EA 50 W Si 180 W Monocrystalline Si module 2 EA MMPT(Maximum Po wer Point Tracking 12V 100Ah 2EA 50 W DetailsIndoor Farming Showcase Lighting System LED lamps for growing plants LightingLED 22W- RED, BLUE mix Growing Methods Nutriculture circulating system (NFT, Nutrient Film Technique) Amount(bunc h) 120pcs of 4 bunches of 80pcs Type of PlantsLettuce(Latuca sativa L)., Salads, Chicory etc. Temperature set-up 10~25 ℃

14. Pictures of composite solar battery power supply (installed panels facing full south on the roof of CRC center of Yeung-nam University) CIGS Si Inside of the control box

15. Pictures of LED street lighting and LED-source indoor farming Showcase (K&K Solar test room on 4 th floor of CRC) Inside of the showcase (growing the lettuce)

16. ContentsOutdoor FarmingShowcase (Indoor Farming) Problems in Sequential Cropping YesNo FertilizingDifficult to fertilize evenly Easy to fertilize evenly because it is absorbed by roots in aqueous solution. Disease and Insect Damage Soil-borne virus, insects damage Low chance of disease and insect damage by blocking off from the outside Treatments for Disease and Insect Damage Use pesticides Do not need to use pesticides. If aphids are found, mix used water from washing rice, milk and water and spray a little bit Space for Plants Wide planting distance because it needs a certain space to plant Short planting distance because roots take up only small spaces LandLimitedYou can plant wherever you find the power supply to plug in. Convenience to manage InconvenientConvenient Plant NutritionSharp change, nutrient imbalanceLittle change and enable to produce and eat high quality plants Soil moisture Damage caused by water stress, low efficiency of water use No damage cased by water stress and high efficiency of water use Rate of GrowthSlow1.5~2 times faster than outdoor farming TasteLittle toughSoft, crunch, and great taste of premium salads Comparison between outdoor farming and LED indoor farming designed by this technology development

17. Test Results for Sun and Module Generation depending on weather condition changes Dec14, 2011 Cloudy Temperature: approx 0~12 ℃ Jan 4, 2012 Cloudy and Snowy Temperature: approx - 5~0 ℃

18. Jan 5, 2012 Snow accumulation, slowly melting Temperature: approx -6~3 ℃ Feb 7, 2012 Sunny, little cloudy Temperature: approx -7~5 ℃ Test Results for Sun and Module Generation depending on weather condition changes (Cont’d)

19. Feb 13, 2012 Rainy, Cloudy Temperature: approx, 0~5 ℃ Test Results for Sun and Module Generation depending on weather condition changes (Cont’d)

20. * CIGS Thin film solar cells with high cost competitiveness of manufacturing unit price, have more or the same gross generation compared to existing silicon solar cells under the actual condition. * Especially under the bad PV cell operating conditions(low amount of light), gross generation of thin film solar cells tends to get ahead of silicon. After analyzing data from the test, CIGS solar cells can be utilized more efficiently in islands, mountain regions or other regions with extreme environmental conditions. Comparison gross generation of CIGS and Si PV modules depending on weather condition changes Test Results for Sun and Module Generation depending on weather condition changes (Cont’d) Conclusion Module unit price prediction based on PV cell materials (source: )

21. Problems and improvements of Technology Development * Connecting parts and the support structure were broken During the operating test, there were errors in the testing equipment such as low battery, errors in the grid- connected system, broken connecting parts and so on Cause: Durability of component parts has been decreased because we conducted the test using the same testing equipment in turns, not separating the street lighting and indoor farming independently. Improvement: Need to use high durable parts to prevent from being broken and damaged due to electrical overloads and overheat Program improvements to control necessary grid-connected system intervention with the alarm when the battery is low or overcharged by checking gross generation and the amount of charge of PV cells Since PV cell modules and array are usually installed outside, changes in the weather and environment conditions should take into consideration before installing. Cause: PV cells and the structure could not stand a strong wind and were broken. When installing the system, it was only supported by sand bags considering the average wind, but the entire system including the support structure and PV cells fell down due to unprecedented strong wind Improvement: After tied up the system with iron wire, the problem was solved. However, since PV cells are easily affected by wind, there needs a full environment research and through safety plan when installing the system.

22. Expected Effects of Technology Development National Energy Strategy Develop CIGS PV cell applied power supply and applications Develop customized off-grid system Replace existing power Contribute to Renewable Portfolio Standard(RPS) effectively Design solar power high transmission system Promote to adopt inexpensive Distributed Generation system Design practical application system Promote exports to developing countries Create Economic Value Expand to blue ocean market continuously

23. Technology Development Applications Technical Trend and Marketability Research and Business Plans Type (Unit: 100 million won Business Implementation ( 2012 ) (the year of development) ( 2013 ) (a year after development) ( 2014 ) (2 years after development) ProductsCIGS Thin Film Solar Cells Power Applications Investment Plans0.512 Sales Plan Domestic 11030 Export005 Total11035 The effect of Import Substitution 0515 Creation of Jobs(People) 5510 Type (unit: 100million won) Current Market Size (2010)* Future Market Size (2015)* Global Market110,000418,000 Domestic Market1,04010,603 Source Korea Photonics Technology (2008) LED lighting Expect the growth of solar powered lighting markets along with fast- growing LED lighting markets, Try to differentiate from existing technology by applying low-cost and high efficiency CIGS solar cells, (applications have not yet been made in domestic markets) - K&K Investment and Sales Plans - LED lighting Market Provide Independent Power Supply to vulnerable areas (farming and fishing communities, islands, and mountain regions) Provide power supply for farming (indoor farming) in cities and farming and fishing communities Provide power supply to solar-powered LED lighting Provide power supply to various applications (small generators) Promote solar-powered applications by collaborating with local governments(Daegu city, Gyeongsangbuk-do) Sell products through construction companies and distribution companies) With existing solar-powered application companies, find more clients for additional collaborating development Future Plans of Participating companies Develop the ultimate integrated solar cell power supply combined with LED contact technology, battery technology, control technology including solar energy conversion technology Develop and produce the solar-powered power system and develop compact CIGS Solar cell applications to export to developing countries Plans to apply for patents for developed technologies