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Solar PV to be the next "trillion" industry: MOEA Minister

November 12, 2007

The government aims to make solar energy Taiwan's next "trillion" industry, according to Minister of Economic Affairs Steve Chen.

Chen addressed a forum on solar photovoltaic (PV) industry development, which was held by the Ministry of Economic Affairs (MOEA) in late October.

The MOEA projects that Taiwan will move up from fifth to fourth place for global solar cell industry output, said Chen. The government will be offering diversified assistance to Taiwan's solar industry, with the eventual goal of being number one for global output, he said.

The discussions at forum, which centered on speeding up solar photovoltaic (PV) development, attracted a number of local solar companies including Motech and Green Energy Technology, as well as other companies and organizations such as China Petroleum, Taiwan Semiconductor Manufacturing Corp, the Industrial Technology and Research Institute.

In his remarks, Chen noted that with increasing oil prices, nearly all countries are actively developing alternative energy, which has resulted in a promising outlook for the global solar PV industry. Global output value in the industry has risen 30% to 40% every year from 2000 to 2006. In 2006, global output for the industry was USD 36.8 billion, with growth projections ranging from 40% to 60% between 2006 and 2010.

According to MOEA statistics, Taiwan's solar PV industry output rose from NTD 7 billion in 2005 to NTD 21.2 billion last year, and now comprises 2% of all global output. This year output is projected to reach NTD 40 billion, with conservative estimates for 2010 reaching NTD 150 billion.

Taiwan's solar cell output was equivalent to 177.5 Megawatts last year. This figure is expected to surpass 300 megawatts this year, which would boost Taiwan position as the world's 5th largest producer to the fourth. Along with LED technology, the MOEA considers the solar PV industry an environmentally-friendly industry with "star" potential. To this end, the MOEA recently dispatched a team to Germany to develop potential cooperative opportunities between German and Taiwanese manufacturers. In addition, several government funds will be used to help companies invest in patent R&D.

Taiwan's strong semiconductor industry gives it an advantage in developing solar power that uses crystalline silicon, said Chen. And although currently there is an upstream materials shortage for crystalline silicon applications, Taiwan still has a strong TFT-LCD industry base could be used to develop thin-film solar panel technology, said Chen.

The government has invested NTD 700 million in R&D expenditures since 1997, and an overall NTD 20 billion in the industry. In addition, a special government program for developing wind and solar energy aims to build installations for 100,000 users by 2015, reaching a capacity of 320 megawatts.

Chen also outlined seven general strategies that have been adopted by the MOEA to promote solar PV industry development: increasing domestic demand and supplying sufficient resources to jumpstart industry development; solving the polycrystalline silicon shortage problem; strengthening competitiveness and capacity of Taiwan's silicon solar PV industry; speeding up integration of the thin-film technology and solar PV; establishing testing and certification services for the Asia-Pacific region; developing solar PV production equipment; instructing the Taipower Company to explore the use of solar PV technology in its infrastructure.

Chen also announced that next year subsidies of NTD 30 million to every county and city to establish model solar PV installations, in order to expand domestic demand in the market.

(Economic Daily News)

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