1. 意大利和中国光伏市场建立 “ 中意合资企业 ” 评估 ASSESMENT OF ITALIAN AND CHINESE PV MARKET AND TECHNOLOGIES FOR THE EVALUATION OF THE INTEREST TO ESTABLISH A SINO ITALIAN ENTERPRENEURIAL INITIATIVE Eng. Giornelli Lucia Energy & Civil Infrastrcture Marketing Analyst The Research activities have been performed in cooperation with DeMEPA senior Experts TPC - Renewable Energy Department Taipei, 31° of May, 2012

2. Agenda 1 Introduction 2 Lecture 1: Renewable Energy Outlook 3 Lecture 2: PV application, Technology and Market 4 Lecture 3: PV supply chain, financing and investment return analysis 5 Lecture 4: Establishment of a PV Sino – European Joint Venture 6 Conclusion 7 Annexes

3. Agenda 1 Introduction 2 Lecture 1: Renewable Energy Outlook 3 Lecture 2: PV application, Technology and Market 4 Lecture 3: PV supply chain, financing and investment return analysis 5 Lecture 4: Establishment of a PV Sino – European Joint Venture 6 Conclusion 7 Annexes

4. Introduction Questions: Is the development of a Sino- European Joint Venture in the Renewable Energy profitable? If yes in which sector? Chinese and European markets anti-symmetric? It happens through: International Outlook of Renewable Energy Business Choice of more profitable sector: PV Analysis of PV International markets (China, United States, Germany and Italy), technologies, applications and supply chain Choice of the most profitable countries: China and Italy Analysis and comparison of Chinese and Italian markets Characteristics of potential partners In China and Italy Analysis of potential businesses models Proposal evaluation Guidelines about business development This analysis is based on information dated July 2011.

5. Agenda 1 Introduction 2 Lecture 1: Renewable Energy Outlook 3 Lecture 2: PV application, Technology and Market 4 Lecture 3: PV supply chain, financing and investment return analysis 5 Lecture 4: Establishment of a PV Sino – European Joint Venture 6 Conclusion 7 Annexes

6. Lecture 1: Renewable energies outlook Eng. Giornelli Lucia Energy & Civil Infrastrcture Marketing Analyst TPC - Renewable Energy Department Eng. Giornelli Ferruccio Energy Policy Senior Advisor Taipei, 31° of May, 2012

7. Renewable Energy Outlook Overview of Renewable Energy (RE) market technologies legislation actual situation and expected development. Main Focus on Wind Solar

8. RE Worldwide Investments/Financing Analysis Clean energy invest overview: Worldwide, the sector increasing 30% above 2009 levels to achieve a record of 243 billion $ worth of investment in 2010 Worldwide investments, excluding R&D, 630% bigger than 7 years ago Shift in global competition: investments from established markets in the developed countries to dynamic emerging markets in the developing world. G-20members:  more than 90% of worldwide investments  2010 growth of 33% above 2009 全球和 G-20 国家清洁能源投资， 2004-2010 （十亿美元） Global and G-20 Clean Energy Investment, 2004-2010 (Billions of US$)

9. RE Worldwide Investments/Financing Analysis 国家和部门投资， 2010 （十亿美元） Investment by Country and Sector, 2010 (Billions of US$) 2010 年清洁能源投资前列（十亿美元） Top in Clean Energy Investment, 2010 (Billions of US$) 2010 Rank Country 2010 Investments (billions $) 2009 Investments (billions $) Investment Increase % 2009 Rank 1China54,439,139%1 2Germany41,220,6100%3 3US34,022,551%2 4Italy13,96,2124%8 5Rest of EU-2713,413,31%4 6Brazil7,67,7-1%7 7Canada5,63,560%9 8Spain4,910,5-53%6 9France4,03,225%12 10India4,03,225%11 China and Italy in the top four in the clean energy investment Chinese and Italian investment represent one third of global (≈210 billions of $) China invests less than three time Italy (55bln$ vs 15 bln$) China invests 11% in the solar applications, Italy 50% in absolute values the two countries have same investments in solar app (China 6bln$ Italy 7bln$) In Asiatic countries, public covers about the 90% of investments In Italy, financing mix is equilibrated  1/3 Public  1/3 Private for small application  1/3 Venture Capital /Private Equity

10. RE Worldwide Investments/Financing Analysis PV Investments: Germany  81% Italy  54% US  25% China  6% WIND investments China  72% US  43% Italy  39% highest 5-years growth rate countries: China  +88% Italy  +71% 中国，德国，美国和意大利部门投资分布， 2005/2010 Distribution of Investment by Sector China, Germany, United States and Italy), 2005/2010

11. RE Worldwide Investments/Financing Analysis 重点投资激励（中国，德国，美国和意大利） Key investment Incentives (China, Germany, United States and Italy) 在中国的，美国，德国，美国，意大利已安装的清洁能源 -2010 Installed clean energy in China, Germany, Us, Italy -2010 China Germany  Wind: Fixed feed-in Tariff  Wind, Solar, Biomass: Feed-in Tariff  Renewable energies: Renewable Energy standards and guaranteed purchase by utilities  Solar: Rooftop and building integrated photovoltaic subsidies US Italy  Wind, Solar: production Tax Credit / Investment Tax Credit  Solar, Biomass, Hydro: feed-in Tariff  Cleantech:  Federal loan guarantees  Large scale renewable Energy: Green certificate  Wind, Solar, Power storage: Federal Manufacturers Tax Credit  Small Wind and Solar projects: 10% reduction o value added Tax ChinaGermanyUSItaly Total Renewable Energy Capacity 103 GW49 GW58 GW16,7 GW Percentage of G-20 Total 27%13%15%4% 5-Years Growth rate 106%67%30%45% Key renewable energy Sectors Wind43 GWWind27 GWWind40 GWWind6 GW Small-Hydro56 GWSolar17 GWSolar3 GWSolar6 GW Solar PV0,8 GWBiomass2 GW Small- Hydro 3 GW

12. Clean energy targets: China, Germany, Us, Italy 中国，德国，美国，意大利清洁能源主要目标 Key clean energy targets in China, Germany, US, Italy China (2020) Germany (2030) Wind150 GWRE Heat Procure 14% of heating resources from Renewable Energies Biomass30 GWRenewable Energy18% of total consumption Solar20 GW US (2022) Italy (2020) Biofuels 36 billion gallons Renewable Energy17% of final consumption Transportation Renewable Energy 10% of final transportation energy consumption Wind at 1 st place in the 4 countries Solar at 2 nd place in Germany, Us,Italy. China is expected to install 20 GW of solar power plant within 2020, thus becoming the first solar energy generating country.

13. Why PV sector?  The solar sector is only at the fourth place among installed renewable energies …  but it grew faster as far as investments are concerned, increasing by 59% over 2009 levels!  Total 2010 investments in solar accounts for 40% of total green energy investments world wide!

14. Agenda 1 Introduction 2 Lecture 1: Renewable Energy Outlook 3 Lecture 2: PV application, Technology and Market 4 Lecture 3: PV supply chain, financing and investment return analysis 5 Lecture 4: Establishment of a PV Sino – European Joint Venture 6 Conclusion 7 Annexes

15. Lecture 2: PV Application, Technology and Market Eng. Giornelli Lucia Energy & Civil Infrastrcture Marketing Analyst TPC - Renewable Energy Department Eng. Giornelli Ferruccio Energy Policy Senior Advisor Taipei, 31° of May, 2012

16. Why PV sector?  The solar sector is only at the fourth place among installed renewable energies …  but it grew faster as far as investments are concerned, increasing by 59% over 2009 levels!  Total 2010 investments in solar accounts for 40% of total green energy investments world wide!

17. Yearly global irradiance and shares of global cumulative installed PV capacity 年度全球辐射和全球累计安装的光伏发电容量份额. While the EU has dominated the world PV market for years and will continue on this path, the rest of the world has clearly the biggest potential for growth; PV represents a convenient, environmentally friendly and sustainable solution to the energy needs of the “Sunbelt’’ countries around the Equator. In these countries, PV can already compete with diesel generators for peak power generation without policy support.

18. 2010 Worldwide cumulative installed capacity share 2010 年全球累计装机容量份额 Fastest PV growth expected in  China and India  South-East Asia  Latin America and MENA PV potential of the Sunbelt  ≈ 60 -250 GW by 2020  ≈ 260 -1,100 GW in 203 representing 27% to 58% of forecast global PV installations. Excluding EU, the rest of the world accounts for a 3 GW Japan and USA will reach 1 GW Australia and Canada are expanding fast. CHINA seems to be the most interested in PV : important industrial projects (solar cells and modules) in the pipeline application projects

19. 2010 European cumulative installed capacity share European main players: Germany, Italy, Spain, Belgium and France United Kingdom: significant investments expected in next 5 years In 2010, PV lead RE technology in capacity growth in Europe:  PV installation 13.3 GW in 2010,  Wind 9.3 GW  Gas power plants 20GW - 28 GW according to sources 2010 年欧洲累计装机容量份额 even if PV reached high levels of installations, the way to a carbon-free power generation mix is still far. Other renewables are also progressing, but not reaching the success of PV and wind.

20. 2010 Power generation installed in EU 27 2010 年欧盟 27 国已安装的发电站 PV installed is an order of magnitude greater than decommissioned and also that a possible future decommissioning of a part of Nuclear plants (the old ones) may be substitute by PV plants (and even RE in general) 在欧洲的发电装机量

21. 2000- 2020. EU cumulative installed capacity 2000 至 2020 年欧盟累计装机容量 - 不同的场景

22. 2000-2020 cumulative installed capacity: Italy – China – Germany - US

23. 2010 - Situation for PV components production CHINA 1 st producer, with ≥ 50% of first generation technology market first producer in the global ranking by market share and other three in the top ten. 2nd generation technologies: serious investments Inverter: not an interesting player ITALY The budget of 2010 for the Italian PV is very positive It still remains a significant gap with major international players, if Italy wants to play an important role on the international stage. growth of the Italian presence in the various stages of PV supply chain growth in special application components (space, BIPV, CPV, Rail-Highways) inverter Italian firms cover 63% of italian market, strong growth Important development of the internationalization of Italian companies, in particular: France, Israel, Greece, Germany, England, Turkey, Canada and the U.S.

24. Why China and Italy? China:  First investor in renewable energies, with an increase of 39%, in 2010  First producer of 1 st generation PV modules and cells  50% of global CPV applications inbound (80MW)  2020 PV application Target 20 GW (today less than 1GW) Italy:  Fourth investor in renewable energies in 2010, with an increase of 124%, second in PV  Second (7GW) in PV application in Europe, after Germany (17GW)  Technological Leader for special applications (space, BIPV, CPV, Rail-Highways)  Southern Italy will be the first region worldwide to achieve grid parity for solar energy in 2016  2015 expected PV application 20GW China and Italy represent an interesting couple for further considerations and comparison. China and Italy are in the top four in the clean energy investment, representing together about one third of the total one (about 210 billions of $ in 2010) strong OFFER strong DEMAND

25. Modules prices by technology and country Similar prices for 1° generation, lower prices for 2° generation, due to low efficiency, not to low production costs! PV Technolog y Internatio nal Price (dec. 2010) Trend Price 2009 - 2010 Italian Price (dec. 2010) Chinese Price (dec. 2010) mono si1,58- 17 /20%+ 3-4%- 20% multi si1,5817 /20%+ 3-4%- 20% a si1,03- 30%+ 10%In line Cd Te1,40- 13/15%in lineIn line CIGS /CCS 1,3-1,4 €/W (production cost data) -55% (production cost data) in lineIn line CPV4 - 40% (in next 5 years) in lineIn line Italy: market grew faster than production  shortage periods Inferior Chinese prices due to Chinese production costs

26. Technological situation in 2010 1st generation cells China remains the fundamental player 80% of the total installed power (50% mono, 50% poly-crystalline) mono&poly-crystalline silicon module average price (end 2010) ≈ € 1.58 / W CPV technology cost of a system of concentration ≈ 4 to 4.5 € / W, will shrink to 2 - 2.5 € / W (in t 5 years) 50% of global application in China Italy is becoming CPV technological leader! 2nd generation smaller success than expected cadmium telluride reached 9% of total installation, 45% of 2 nd generation (2,700 MW) amorphous silicon (a-Si) rose from 5 to 8% of the total power thin films reached 22-24% on new PV capacity installed by 2012 Inverter Inverters continue to play a key role in influencing the overall efficiency of PV system and prices Italian technological leadership

27. Comparison among different PV technologies Comparison among the different PV technologies Cells Constructio n maturity of solar cells Today energetic efficiency Efficiency trend of growth: target 2015 Energetic efficiency physic limit Assembling maturity of Modules How much the market believes in this technology. Mono sigood +21%24%29 %good + achievable improvements now a day limited, requiring significant investments Multi sigood19 %21%29 %good - a simedium12 %Not available Medium There is still interest, but less than two years earlier CdTemedium +15%30%Not availableMedium CIGS /CCS Prototypal11%30%Not available In development  Short term: the growth prospects are scaled with respect to the operator forecast made in 2009.  Middle- long-term: interesting perspectives on the competitiveness CPVgood 20% for 100x systems 26 – 27 %29%Sufficient Return on investments: at the moment less attractive than other technologies, except for Sunbelt areas. 不同的光伏技术比较

28. The market leaders of cells and modules Technologies Countries Market Leader by market shareTechnological Leader Mono si  China, more than 50%  United States  Germany  Taiwan  Japan  Suntech (China)  First Solar (Usa)  Q-Cells (Germany)  Yingli (China)  Trina (China)  JA Solar (China)  Motech (Taiwan)  Sharp (Japan)  Gintech (Taiwan)  Conergy (Germany)  Aleo Solar Germany)  Solon GermanY)  Centrosolar (Germany) Market is mature, thus the driver is represented by costs and distribution channels multi si a si  United States  Germany  UNI Solar (US)  Schott Solar (Germany)  Sharp (Japan)  Mitsubishi Heavy Industries (Japan)  UNI Solar (US)  Schott Solar (Germany) Cd Te  United States  Germany  First solar (US)  Abound solar (Germany)  Prime Star Solar (US)  Calyxo, Q-Cells Group (Germany)  First solar (US)  Abound solar (Germany CIGS /CCS Us japan  Solyndra (US)  Miasole (US)  Solar Frontier (Japan)  Nanosolar (US) Solyndra (US) CPV  Spain  United States  Germany  Guascor Foton (Spain)  Concentrix (Germany)  Amonix (US)  SolFocus (US)  Emcore (US)  Sharp (Japan)  Isofoton (Spain)  Arima Ecoenergy (Taiwan)  Daido Steel (Japan)  Solar Systems (Australia) Not yet affirmed

29. Manufacturing and certification Among reliable certifications of solar equipment: UL – Underwriter Laboratories IEEE – Institute of Electrical and Electronic Engineers IEC – International Electro-technical Commission CEN - EN – (European Committee for standardization) UNI - Ente Nazionale Italiano di Unificazione (Italian National Agency for Standardization). Prices and conditions first certification ≈ € 40,000 € + € 15,000 for following extensions certification requires 2 - 3 months, 1 month for extension Certificate characteristics type test certificate assures module performances are compliance with standards process quality certificate assures process compliance with requirements

30. Quality and performance certification and evaluation To enter Europe, PV modules must be certified at least to following standards: IEC 61215, on the photovoltaic modules in crystalline silicon IEC 61646, on thin-film modules IEC 62108, which concerns CPV systems. To be checked: aging cycles decline of performances over time other specific client requests Be carefull:! Often the company moved to a different supplier of cells or because they are been replaced with other critical components used in the module, such as glass or others. At each change of one of the components of the module, the certification should be extended or at least a technical report should be submitted to prove compliance with the required quality.

31. Agenda 1 Introduction 2 Lecture 1: Renewable Energy Outlook 3 Lecture 2: PV application, Technology and Market 4 Lecture 3: PV supply chain, financing and investment return analysis 5 Lecture 4: Establishment of a PV Sino – European Joint Venture 6 Conclusion 7 Annexes

32. Lecture 3: PV supply chain, financing and investment return analysis Eng. Giornelli Lucia Energy & Civil Infrastrcture Marketing Analyst TPC - Renewable Energy Department Eng. Giornelli Ferruccio Energy Policy Senior Advisor Taipei, 31° of May, 2012

33. Supply chain Comparison 2010 年意大利和中国供应链 China: Percentual reduction of what involves labour and to lower level. Distribution costs are maintained, because of China big dimensions and a distribution chain still to organize.

34. Weight of PV System components 中国 - 住宅交钥匙成本比重％ 意大利 - 住宅交钥匙成本比重％ China: lower labor cost, thus hardware has higher weight! Effort to reduce modules costs will be fundamental only in medium/big plants, not residential: BIG OPPORTUNITY FOR CHINESE PRODUCER

35. Plant segmentation 2010 年发电细分 China in small, medium, big equally Italy big plants and power plants

36. Europe - main regulatory issues for 2010 – 2011 欧盟主要国家支持计划评估 Main EU countries support scheme assessment Political support environment General political support situation France Clear FiT evolution in 2011. Strong adverse lobbying from conventional stakeholders. Temporary revision of the FiT in 2011 leading to a complex scheme. End of moratorium. Heavy and slow administrative processes keeping prices artificially high Germany Clear FiT evolution in 2011. Intermediate measure taken to avoid market to surge again. Willingness to control market within defined ranges. The simple and lean administrative framework can be bettered. Italy Clear FiT evolution in early 2011. New Fourth Energy Bill able to assure the market and the Investors. Improving administrative process but long road to reduce costs and lead time Spain Clear FiT evolution in 2011. Issues to be solved regarding market segmentation withinthe cap. Risk of retroactive law reduced. Heavy and slow administrative process United Kingdom Unclear FiT evolution in 2011. Strong political reaction in 2011 led to new scheme notfavorable to all segments.

37. Main regulatory issues in 2011 ITALY Fourth Energy Bill (5th of May 2011) Privileges for small and medium size on Buildings roofs Encouragement of energy self consumption, in comparison of that sold and put in the network  “energy sales” requires serious investments in electrical infrastructures and their operation activities. New 2016 installation target : 23 GW (3times 2020 target!) From 2012 on: incentives reduction every six months. CHINA Twelfth Five-Year Plan (March 14th 2011) Environment & clean energy goals: non-fossil fuel : 11.4% of energy consumption energy consumption per unit of GDP: - 16 % carbon dioxide emission per unit of GDP: - 17 % Consideration No official data But surely government huge investment are expected in medium and large PV plants. Probably reduced follow out for family and small commercial applications

38. Financing Typologies (Italy) 意大利 2010 - 融资类型

39. Italian installed PV capacity forecast 2015 target already surpassed!!!!

40. 600 M€ Main Italian Economics Italian Modules producers: – MX group 83 million € – Solar day 73 million €; – Renergies 60 million € Italian integrated producer of cells and modules: – Solsonica 100 million € – Elios technology 61 million € – Xgroup 57 million € in 2010 Distribution: – Enerpoint 100 million € – Tecno Spot 150 million – Coenergia 92 million Italian inverter: – Power-One 300 million € – Elettronica Santerno 50 million € – SIEL 100 million € System integratosr and EPC contractors: – Enel 320 million € – Enerpoint 150 million € – Ecoware 220 million € – Enerray 190 million € 400 M€ 700 M€ 1200 M€ MAIN PLAYERSMARKET SIZE Tot Italian PV Business 7.6 billion €

41. Agenda 1 Introduction 2 Lecture 1: Renewable Energy Outlook 3 Lecture 2: PV application, Technology and Market 4 Lecture 3: PV supply chain, financing and investment return analysis 5 Lecture 4: Establishment of a PV Sino – European Joint Venture 6 Conclusion 7 Annexes

42. Lecture 4: Establishment of a PV Sino – European Joint Venture Eng. Giornelli Lucia Energy & Civil Infrastrcture Marketing Analyst TPC - Renewable Energy Department Eng. Giornelli Ferruccio Energy Policy Senior Advisor Taipei, 31° of May, 2012

43. Symmetry evaluation CATHEGORIESChinaItaly Anti- symmetric COMMENTS Application: Market Dimension & Trends Growth in both countries (Italy 2° globallly) Components: Market Dimension & Trends X China: 1st generation growing Italy: special application growing Modules: Price & Trends X China: 1 st generation Price decrease 10% yearly Italy: same level/slightly increasing because of bulk development Weight of components (residential app) Modules and cells 55% 40% X China: big weight of modules and cells Italy: decreasing weight Engineeering 25% 40% Weight of the various market segments Large and Power Plants 27% 82% X China dedicated to residential (30%), medium (28%) and large plants (27%) Italy: strong weight of large plants (56% ) power plants (26%) Residential 30% 10% Business models from China to Italy X China: Production Italy: Sales and Owner engineering activity Average Margin in Italian market X Italy: 10-15%, but volatile Technological, technical and engineering knowledge and experince X China: leadership in components Italy: leadership in application, engineering and inverter production Incentive Policies in Italy Feed in Italy: interesting opportunity in applications Financing policies in ItalyItaly: interesting and diversified Interesting grade of anti-symmetry!  business from CHINA to ITALY

44. Description of a potential Sino – Italian Joint Venture Chinese Partner characteristics Italian Partner characteristics Potential Business Models

45. Partners characteristics Chinese Partner  1 ° generation experienced producers with good revenues and references in China  Ability to offer competitve prices in international markets (volumes and response time)  Technical knowledge of applications Italian Partner  Sales and distribution support  Assembly activities support  Burocracy support (localization, permits,..)  Owner engineering

46. Potential Business Models Potential business models Model AcronymDescription CP&E  cell and module production in China  pure export modality in Italy CP&B  cell and module production in China  opening a commercial branch in Italy CP&I&B  cell and module production in China  additional sales (included inverter)  opening a commercial branch in Italy CP&AI&B  cell and module production in China  assembling activities in  opening a commercial branch in Italy CP&B&SI  cell and module production in China  System Integrator activities CP&B&EPC  cell and module production in China  opening a commercial branch in Italy  EPC contactor activities CP&B&O  cell and module production in China  opening a commercial branch in Italy  ownership of the plant Production In China Distribution in Italy Assembly in Italy Engineering in Italy Mngmt/Owners hip of plants COMBINATION OF 

47. Market accessibility Attractiveness / Positioning matrix Market Attractiveness Chinese Player Positioning 25%15%10% 15% 10% 30%15%25%10%20% Business models Technology complexity PV Italian market growth Financial aspects Sitting choice and permitting procedures Application complexity Competitive frame work Entry Barrier Brand and References Commercial presence Commercial know - how Technical know how Productive know how CP&E21243111 43552 CP&B22343122 33552 CP&I&B53343222 33553 CP&AI&B24453333 33245 CP&B&SI43334344 21223 CP&B&EPC55434555 11112 CP&B&O24355333 11111 Evaluation of the business models 1/4 12 3

48. Market Dimension, Attractiveness and Positioning matrix synthesis Model Acronym Model Description Market Dimension Total Attractiveness Total Positioning CP&E  cell and module production in  pure export modality in 21,73,8 CP&B  cell and module production in  opening a commercial branch in, 22,33,5 CP&I&B  cell and module production in  additional sales (included inverter)  opening a commercial branch in 52,73,7 CP&AI&B  cell and module production in  assembling activities in (for those components sold in Italy)  opening a commercial branch in 23,63,3 CP&B&SI  cell and module production in  System Integrator activities 43,42,1 CP&B&EPC  cell and module production in  opening a commercial branch in  EPC contactor activities 54,61,2 CP&B&O  cell and module production in  opening a commercial branch in  ownership of the plant (or financial participation) 23,71,0 Evaluation of the business models 2/4 HIGH EVALUATIONMEDIUM EVALUATION Chinese Player Positioning does not match so well with Market Attractiveness, but in interesting way with the Market Dimension Growth strategy: Chinese player needs alliance with an Italian partner, not only for sales and distributions, but also for the applications (system contractor, EPC, etc.), to better match with market characteristics, thus growing more and faster

49. Market Dimension, attractiveness and positioning 市场，吸引力和定位 Evaluation of the business models 3/4 Most interesting business models in 1° quatrant!

50. Business models potentially more interesting for the export and sales modality Number order Model Acronym Business Model description 1 ACP&AI&B  cell and module production in China  assembling activities in Italy  opening a commercial branch in Italy 2CP&I&B  cell and module production in China  opening a commercial branch in Italy  additional sales (included inverter) 3CP&B  cell and module production in China  opening a commercial branch in Italy Evaluation of the business models 4/4 1 2 3 Most interesting business model. Productive branch as significant added value. Interesting business model if the Chinese operator shall decide to have also a commercial branch and not only the assembling one. Probably the start – up model, if the player does not decide to start directly with the commercial and productive branch Possible Deployment

51. Business Deployment 通过工程伙伴关系的合作加强

52. Business reinforcement Two Options: Reinforcement of the Italian activities Business enlargement in the Chinese market Options are not alternative, but may be considered as possible steps to follow during the activity growth

53. Reinforcement of the Italian activities 1/2 Commercials : export to Italy of Chinese components:  Inverters for small applications  LV/MV cables; Engineering and application activities :  System Integrator activities  EPC contractor activities  Ownership of PV plants (or financial participation). This business may start when the Chinese industry will be competitive not only in price, but also in quality; Business more focused on the application and management phase, rather than on the export and sales of components (cells, modules, inverters, etc.)

54. 通过工程伙伴关系的合作加强 Reinforcement of the Italian activities 2/2

55. Business enlargement in the Chinese market Export from Italy to China  high performance cells and modules  systems for CPV  advanced High Power inverters Possible export in China of Italian components/systems Component acronymDescription CM sp special cells, modules and systems also for space application CM BIPV special cells, modules and systems for BIPV application CM 2Other special cells and modules CPV 1 CPV trackers CPV 2 CPV others components HLI sophisticated inverters for PV Large PV and PV power plants DC cab HV/MV DC cables for PV Large PV and PV power plants Possible development in China of Italian Application services Service acronymDescription BIPVBIPV applications HRA highways and railways application LP&PPPV Large Plants and PV power plants CPVPP CPV power plants R&D R&D and Innovation activities 意大利安装服务在中国的发展可能 可能出口中国的意大利组件 / 系统 Development of advanced PV applications:  BIPV applications  CPV applications  High & Railways applications

56. POSSIBLE TARGETS FOR THE JOINT VENTURE: 1)Sales of cell and modules with a 10-15 million € of target; 2)+ Assembly activities  30-50% increment on (1) 3)+ Inverter sales  30% increment on point 1, starting this activity 3 years later the main one, waiting for Chinese components to reach European level TIMING: 6 months:  Joint Venture establishment  Resources recruitment 24-30 months:  Target achievement for sales activity  Assembly activity can start Further Considerations

57. Start ASAP 1.Before others do! 2.Before incentive reduce/finish!

58. Agenda 1 Introduction 2 Lecture 1: Renewable Energy Outlook 3 Lecture 2: PV application, Technology and Market 4 Lecture 3: PV supply chain, financing and investment return analysis 5 Lecture 4: Establishment of a PV Sino – European Joint Venture 6 Conclusion 7 Annexes

59. Conclusions The lecture presented a description and analysis of Chinese and Italian market trends supply chain of PV incentive and financing mechanism the return of investments possible business Symmetry analysis Attractiveness analysis Business model analysis This analysis is based on information dated July 2011. strong growth in the order of two digit, a production capacity not adequate to demand incentives much higher than the amounts spent at European level. 2015 installation forecast: 10-15 GW Interesting grade of anti-symmetry Room for enterpreneurial initiative China Italy strong development of industries, competitive prices huge Chinese government investments, 2015 installation forecast: 12-18 GW Most attractive: Export from China to Italy of components (mainly first generation cells and modules) probably with an Engineering support of Italian partners. business from Italy to China less attractive, but can be great support business if added, for special application (space, BIPV, CPV,Rail-Highways)

60. Thank you

61. Agenda 1 Introduction 2 Lecture 1: Renewable Energy Outlook 3 Lecture 2: PV application, Technology and Market 4 Lecture 3: PV supply chain, financing and investment return analysis 5 Lecture 4: Establishment of a PV Sino – European Joint Venture 6 Conclusion 7 Annexes