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Kai Vogt, Director, International Business,
Centrotherm Photovoltaics AG
Centrotherm Photovoltaics AG, based in Blaubeuren, is the world's
leading technology and equipment providers in the photovoltaic
industry. The company equips well-known solar companies and new
sector entrants with turnkey production lines and single equipment to
manufacture silicon, crystalline solar cells and thin film modules. As a consequence, the Group
possesses a broad and well-founded technological basis, as well as key equipment at practically all
steps of the photovoltaics value chain. Centrotherm photovoltaics guarantees its customers important
performance parameters such as production capacity, efficiencies, and completion deadlines.The Group
employs over 1,400 staff members, and operates in Europe, Asia and the USA.
Mr. Kai Vogt, Director, International Business, Centrotherm Photovoltaics
AG, joined the company on 1st July 2009. Additionally, he is the Director of the
Indian Subsidiary, Centrotherm Photovoltaics India Private Limited. After
successful completion of his apprenticeship as a bank clerk, Mr. Vogt studied
international business economics. Among basic knowledge in Chinese and Italian
he speaks English and Spanish fluently. After his studies he has been working in
Germany for different companies and was able to improve his international skills
with numerous long-term employments abroad. Before he joined Centrotherm he
was the Head of Department for Corporate Development at a renowned German
company, mainly responsible for the market entry in China. In his function for Centrotherm Mr. Vogt is
responsible for the organizational growth worldwide by establishing and developing new subsidiaries
abroad as well as expanding the international representation of Centrotherm constantly. Furthermore,
his department takes care of all important operational international issues.
Replying to Anil Mascarenhas of IIFL, Kai Vogt says, “Our investment in India is by supporting our
customers to fulfill this ambitious local content regulation and to be best in class with low production
costs and high quality solar cells.”
Brief overview of the PV industry. What are the changing trends?
It is seen that Global PV demand estimates from the 10 top market researchers range from 12.7 to
17.3 GW in 2010 and 15.6 to 25.4 GW in 2011. Once again, Germany led all national markets last
year by a wide margin, adding between 6 and 8.5 GW. The US has installed 1 GW of PV in 2010 which
many see it doubling in 2011 After strong growth in 2010, Australia, Belgium, France and Spain could
all stall in 2011, while Canada, China, India and the UK are seen to be picking up pace.
The European market will remain dominant next few years, but diversification of markets will be seen
and will see an increase investment in USA and countries in Asia.
Coming to the India market, the country's National Solar Mission (NSM), a three-phase solar program
targeting 20 GW of mostly large-scale PV installations by 2022, is beginning to take root and has
paved the road to a solar future. For 2010, PV installation awarded was about 150 MW (In November,
30 PV contracts equal to 150 MW were awarded to the lowest bidders for a feed-in tariff in a first -
round competition)
For 2011, Barclays expects an Indian PV market to be of 500 MW, while Bryan Gamier is forecasting
280 MW and PHOTON Consulting foresees 300 MW.
What is the size of the industry and what is your estimated share?
VLSI Research states that in 2010 the outlook for PV manufacturing equipment has exceeded by as
compared to the year 2008. The equipment sales are expected to exceed US$ 9.4bn in 2010, beating
the previous peak reached in 2008 by around 10%. Most of the growth in equipment was driven by
high levels of shipments for crystalline silicon solar cells, although sales of equipment for CdTe and
CIGS equipment were also strong. Out of the total PV manufacturing equipment c-Si cell/ module
equipment market is about 4.5 Bn $. Centrotherm market share in the c-Si cell/ module equipment is
that of in double digits.
What prospects do you see in India and what is your investment in India?
India is regarded as an important growth market for Centrotherm photovoltaics. The country aims to
create solar electricity capacities of around 20 GW by 2022 as part of its "National Solar Mission." With
our subsidiary in India we have taken a key step to tap these tremendous potentials by having our
local presence.
Our investment is by supporting our customers to fulfill this ambitious local content regulation and to
be best in class with low production costs and high quality solar cells.
Brief us on your financials and what is the outlook?
The Group employs over 1,400 staff members, and operates in Europe, Asia and the USA and is listed
in the TecDAX index on the Frankfurt Stock Exchange.The company’s revenue budgeted to grow
between EUR 690 million and EUR 710 million (Proivisonal) in 2011.
The initial cost has always been a deterrent in embracing this technology? What is your
reading of the situation?
There is a clear trend moving from fossil energy generation to renewable energy. From all the energy
resources the direct sun energy is the most available as well as carbon neutral and so it is clear that on
the long term solar energy will be the main energy source to feed the global energy consumption.
Especially countries like India with a lot of sun light (250-300 days in a year)have already reached the
so called grid parity meaning that PV electricity cost has already at certain hours and locations is same
or even lower as conventional energy. The cost degression roadmap is the most aggressive from all the
other energy generation sources, so on the long run solar energy will gain more market share.
What kind of demand are you seeing from Asian cell manufacturers?
Cell manufacturers, our customers in Asia and across the world are asking for cost effective cell
manufacturing with a competitive technology. This allows our customers to realize lower operating
costs, and to expand their cost leadership.
What are the technological changes you expect to see in this segment in the coming years?
The changes that we expect to see in the coming years are the necessity to manufacture with the best
equipment and technology is crucial to compete in future markets. Due to the year over year price
reduction the production cost have to reduce accordingly still providing optimised energy efficiency
The new technologies will increase the cell efficiency towards 20% and above (e.g. selective emitter or
centaurus rear side).
What is the current capacity in Asia and India? What capacities do you see in the next few
years?
We see India being amongst the world’s biggest market for turnkey production lines. According to our
estimates, India will have production capacity of 825MW by 2011 with a 50-100% growth being
planned for 2012. A lot of business plan will be driven by the success of first phase execution of
National Solar Mission (NSM) and the upcoming state policies apart from the overall global market. In
Asia we see an increase in demand in China and Korea.
What is the demand-supply gap here?
Currently India’s cell manufacturing capacity is well matched to the demand, but with the estimated
increased demand the country has to build up manufacturing capacity to meet the future goals.
What is the key business of your company in the solar space? Explain to us your business
model?
Centrotherm is the world’s leading supplier of PV production equipment and technology along the
whole PV value chain. The company equips well-known solar companies and new sector entrants with
turnkey production lines and single equipment to manufacture silicon, crystalline solar cells and thin
film modules. As a consequence, Centrotherm photovoltaics possesses a broad and well-founded
technological basis, as well as key equipment at practically all steps of the photovoltaics value chain.
Centrotherm is the worldwide pioneer of turnkey solar cells production lines with more than 30 years
photovoltaics experience. We equip well-known solar companies and new sector entrants with turnkey
production lines and single equipment to manufacture silicon, crystalline solar cells and thin film
modules. As a consequence, Centrotherm photovoltaics possesses a broad and well-founded
technological basis, as well as key equipment at practically all steps of the photovoltaics value chain.
In a highly competitive market that has reached mass production, Centrotherm photovoltaics deliver
significant competitive advantages for our customers through first-class technology and production
systems.
What will be the role of Centrotherm Photovoltaic India?
In India we will like to take the initiative and drive adoption of photovoltaics for the sake of India and
the improvement of the world climate.
Centrotherm photovoltaics has opened its own subsidiary in India with an office in Bangalore.This step
allows the world’s leading technology and equipment supplier to the photovoltaics sector to expand its
sales and service activities in the growth market of the country.
Additionally we provide local service and support to our customers. Very soon we will stock spare parts
locally as our customer base increases.
It is our declared aim to offer advanced, leading edge technology and excellent service by our
closeness to customers. We have already been maintaining partnerships with our Indian customers
over many years. And we are firmly convinced of the further, successful and sustained development of
the Indian photovoltaics market.
How do you evaluate the Indian solar PV scenario based on the allocations made so far?
We wish for the first phase of solar PV to be successful as it sets the tone for the mission success. We
believe the government has done its share and it is up to the industry to execute. We are supportive
of the Government’s cause to promote the local manufacturing.
Why do you think Indian solar PV companies should use your solutions?
Centrotherm photovoltaics brings with it more than 30 years of experience in serving the PV industry
as leading equipment and technology supplier. The company has enabled and shown success in
countries like China, Taiwan, Korea and others.
It is gratifying to see our early customers in India manufacturing c-Si cells with the highest efficiency in
India and being able to compete with global players in quality. We are bringing the most advanced
solutions with German engineering and technology to drive down the cost of solar PV electricity.
What, according to you, are some of the key roadblocks in the Indian solar PV scenario?
Stability is needed to connect grid connected PV, unaccounted environmental cost of coal and the
resulting low electricity prices for industry, understanding of the technology by banks to finance the
projects, diesel subsidy masking the true cost of electricity in stand by diesel generators, are a few
challenges seen.
Some efforts have been made to rectify this by Ministry of New and Renewable Energy by targeting
solar power usage in telecom towers for example. Cost of funds in India is another roadblock as solar
PV has a high upfront capital cost.
What steps do you think that companies desirous of entering/already in the Indian solar PV
market should take?
Companies should do a due diligence on the technology and selection of companies with strong
roadmap towards increasing efficiency and lowering the cost.
Centrotherm is investing every year in the double-digit euro million range in Research and
Development (e.g. 2010 the company invested about EUR 50 million) and have a strong track record in
execution of projects worldwide.
Centrotherm guarantees its customers important performance parameters such as production capacity,
efficiencies, and completion deadlines. A cost of ownership calculation that Centrotherm offers is also
very crucial.
What are the future steps that Indian companies interested in solar PV should take?
The companies in India should believe and take the advantage in the power of sun. The country should
build up the Indian PV industry along the PV value chain by integrating wafer and poly manufacturing
apart from cell and module.
We urge the customers to not to invest in low quality which will jeopardize their business.
The companies looking to invest in this sector should focus on quality and cost. They should build up
scale so that the cost can be at par with leading cell makers from China and Taiwan.
What kind of boost does the National Solar Mission give for companies such as yours?
We are here in India to support and enable the National Solar Mission, one of the objective is to take a
global leadership role in solar manufacturing (across the value chain) of leading edge solar
technologies and target a 4-5 GW equivalent of manufacturing capacity by 2020, including setting up
of dedicated manufacturing capacities for poly silicon material to make solar cells. The local regulation
is a growth driver and with our subsidiary in India we have taken a key step to tap these tremendous
potentials by way of our local presence.
The Indian government shows the commitment to establish an Indian PV market for the Indian people
and sake of humanity. Centrotherm’s vision is to enable PV electricity for everyone and enabling the
Indian people.
There are few listed companies like Indo Solar and Moser Baer. What is your take on such
companies?
As a company policy we do not comment on specific companies. However, we believe that as the
market matures, more companies will tap the equity market to fund their plans. There should be more
Indian companies driving the Indian PV industry, so that this industry will become more significant.
Indian companies have to jump start their PV industry to become competitive, Centrotherm the leading
c-Si turnkey supplier will like to support and partner with these companies.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Kai Vogt, Director, International Business,
Centrotherm Photovoltaics AG
Centrotherm Photovoltaics AG, based in Blaubeuren, is the world's
leading technology and equipment providers in the photovoltaic
industry. The company equips well-known solar companies and new
sector entrants with turnkey production lines and single equipment to
manufacture silicon, crystalline solar cells and thin film modules. As a consequence, the Group
possesses a broad and well-founded technological basis, as well as key equipment at practically all
steps of the photovoltaics value chain. Centrotherm photovoltaics guarantees its customers important
performance parameters such as production capacity, efficiencies, and completion deadlines.The Group
employs over 1,400 staff members, and operates in Europe, Asia and the USA.
Mr. Kai Vogt, Director, International Business, Centrotherm Photovoltaics
AG, joined the company on 1st July 2009. Additionally, he is the Director of the
Indian Subsidiary, Centrotherm Photovoltaics India Private Limited. After
successful completion of his apprenticeship as a bank clerk, Mr. Vogt studied
international business economics. Among basic knowledge in Chinese and Italian
he speaks English and Spanish fluently. After his studies he has been working in
Germany for different companies and was able to improve his international skills
with numerous long-term employments abroad. Before he joined Centrotherm he
was the Head of Department for Corporate Development at a renowned German
company, mainly responsible for the market entry in China. In his function for Centrotherm Mr. Vogt is
responsible for the organizational growth worldwide by establishing and developing new subsidiaries
abroad as well as expanding the international representation of Centrotherm constantly. Furthermore,
his department takes care of all important operational international issues.
Replying to Anil Mascarenhas of IIFL, Kai Vogt says, “Our investment in India is by supporting our
customers to fulfill this ambitious local content regulation and to be best in class with low production
costs and high quality solar cells.”
Brief overview of the PV industry. What are the changing trends?
It is seen that Global PV demand estimates from the 10 top market researchers range from 12.7 to
17.3 GW in 2010 and 15.6 to 25.4 GW in 2011. Once again, Germany led all national markets last
year by a wide margin, adding between 6 and 8.5 GW. The US has installed 1 GW of PV in 2010 which
many see it doubling in 2011 After strong growth in 2010, Australia, Belgium, France and Spain could
all stall in 2011, while Canada, China, India and the UK are seen to be picking up pace.
The European market will remain dominant next few years, but diversification of markets will be seen
and will see an increase investment in USA and countries in Asia.
Coming to the India market, the country's National Solar Mission (NSM), a three-phase solar program
targeting 20 GW of mostly large-scale PV installations by 2022, is beginning to take root and has
paved the road to a solar future. For 2010, PV installation awarded was about 150 MW (In November,
30 PV contracts equal to 150 MW were awarded to the lowest bidders for a feed-in tariff in a first -
round competition)
For 2011, Barclays expects an Indian PV market to be of 500 MW, while Bryan Gamier is forecasting
280 MW and PHOTON Consulting foresees 300 MW.
What is the size of the industry and what is your estimated share?
VLSI Research states that in 2010 the outlook for PV manufacturing equipment has exceeded by as
compared to the year 2008. The equipment sales are expected to exceed US$ 9.4bn in 2010, beating
the previous peak reached in 2008 by around 10%. Most of the growth in equipment was driven by
high levels of shipments for crystalline silicon solar cells, although sales of equipment for CdTe and
CIGS equipment were also strong. Out of the total PV manufacturing equipment c-Si cell/ module
equipment market is about 4.5 Bn $. Centrotherm market share in the c-Si cell/ module equipment is
that of in double digits.
What prospects do you see in India and what is your investment in India?
India is regarded as an important growth market for Centrotherm photovoltaics. The country aims to
create solar electricity capacities of around 20 GW by 2022 as part of its "National Solar Mission." With
our subsidiary in India we have taken a key step to tap these tremendous potentials by having our
local presence.
Our investment is by supporting our customers to fulfill this ambitious local content regulation and to
be best in class with low production costs and high quality solar cells.
Brief us on your financials and what is the outlook?
The Group employs over 1,400 staff members, and operates in Europe, Asia and the USA and is listed
in the TecDAX index on the Frankfurt Stock Exchange.The company’s revenue budgeted to grow
between EUR 690 million and EUR 710 million (Proivisonal) in 2011.
The initial cost has always been a deterrent in embracing this technology? What is your
reading of the situation?
There is a clear trend moving from fossil energy generation to renewable energy. From all the energy
resources the direct sun energy is the most available as well as carbon neutral and so it is clear that on
the long term solar energy will be the main energy source to feed the global energy consumption.
Especially countries like India with a lot of sun light (250-300 days in a year)have already reached the
so called grid parity meaning that PV electricity cost has already at certain hours and locations is same
or even lower as conventional energy. The cost degression roadmap is the most aggressive from all the
other energy generation sources, so on the long run solar energy will gain more market share.
What kind of demand are you seeing from Asian cell manufacturers?
Cell manufacturers, our customers in Asia and across the world are asking for cost effective cell
manufacturing with a competitive technology. This allows our customers to realize lower operating
costs, and to expand their cost leadership.
What are the technological changes you expect to see in this segment in the coming years?
The changes that we expect to see in the coming years are the necessity to manufacture with the best
equipment and technology is crucial to compete in future markets. Due to the year over year price
reduction the production cost have to reduce accordingly still providing optimised energy efficiency
The new technologies will increase the cell efficiency towards 20% and above (e.g. selective emitter or
centaurus rear side).
What is the current capacity in Asia and India? What capacities do you see in the next few
years?
We see India being amongst the world’s biggest market for turnkey production lines. According to our
estimates, India will have production capacity of 825MW by 2011 with a 50-100% growth being
planned for 2012. A lot of business plan will be driven by the success of first phase execution of
National Solar Mission (NSM) and the upcoming state policies apart from the overall global market. In
Asia we see an increase in demand in China and Korea.
What is the demand-supply gap here?
Currently India’s cell manufacturing capacity is well matched to the demand, but with the estimated
increased demand the country has to build up manufacturing capacity to meet the future goals.
What is the key business of your company in the solar space? Explain to us your business
model?
Centrotherm is the world’s leading supplier of PV production equipment and technology along the
whole PV value chain. The company equips well-known solar companies and new sector entrants with
turnkey production lines and single equipment to manufacture silicon, crystalline solar cells and thin
film modules. As a consequence, Centrotherm photovoltaics possesses a broad and well-founded
technological basis, as well as key equipment at practically all steps of the photovoltaics value chain.
Centrotherm is the worldwide pioneer of turnkey solar cells production lines with more than 30 years
photovoltaics experience. We equip well-known solar companies and new sector entrants with turnkey
production lines and single equipment to manufacture silicon, crystalline solar cells and thin film
modules. As a consequence, Centrotherm photovoltaics possesses a broad and well-founded
technological basis, as well as key equipment at practically all steps of the photovoltaics value chain.
In a highly competitive market that has reached mass production, Centrotherm photovoltaics deliver
significant competitive advantages for our customers through first-class technology and production
systems.
What will be the role of Centrotherm Photovoltaic India?
In India we will like to take the initiative and drive adoption of photovoltaics for the sake of India and
the improvement of the world climate.
Centrotherm photovoltaics has opened its own subsidiary in India with an office in Bangalore.This step
allows the world’s leading technology and equipment supplier to the photovoltaics sector to expand its
sales and service activities in the growth market of the country.
Additionally we provide local service and support to our customers. Very soon we will stock spare parts
locally as our customer base increases.
It is our declared aim to offer advanced, leading edge technology and excellent service by our
closeness to customers. We have already been maintaining partnerships with our Indian customers
over many years. And we are firmly convinced of the further, successful and sustained development of
the Indian photovoltaics market.
How do you evaluate the Indian solar PV scenario based on the allocations made so far?
We wish for the first phase of solar PV to be successful as it sets the tone for the mission success. We
believe the government has done its share and it is up to the industry to execute. We are supportive
of the Government’s cause to promote the local manufacturing.
Why do you think Indian solar PV companies should use your solutions?
Centrotherm photovoltaics brings with it more than 30 years of experience in serving the PV industry
as leading equipment and technology supplier. The company has enabled and shown success in
countries like China, Taiwan, Korea and others.
It is gratifying to see our early customers in India manufacturing c-Si cells with the highest efficiency in
India and being able to compete with global players in quality. We are bringing the most advanced
solutions with German engineering and technology to drive down the cost of solar PV electricity.
What, according to you, are some of the key roadblocks in the Indian solar PV scenario?
Stability is needed to connect grid connected PV, unaccounted environmental cost of coal and the
resulting low electricity prices for industry, understanding of the technology by banks to finance the
projects, diesel subsidy masking the true cost of electricity in stand by diesel generators, are a few
challenges seen.
Some efforts have been made to rectify this by Ministry of New and Renewable Energy by targeting
solar power usage in telecom towers for example. Cost of funds in India is another roadblock as solar
PV has a high upfront capital cost.
What steps do you think that companies desirous of entering/already in the Indian solar PV
market should take?
Companies should do a due diligence on the technology and selection of companies with strong
roadmap towards increasing efficiency and lowering the cost.
Centrotherm is investing every year in the double-digit euro million range in Research and
Development (e.g. 2010 the company invested about EUR 50 million) and have a strong track record in
execution of projects worldwide.
Centrotherm guarantees its customers important performance parameters such as production capacity,
efficiencies, and completion deadlines. A cost of ownership calculation that Centrotherm offers is also
very crucial.
What are the future steps that Indian companies interested in solar PV should take?
The companies in India should believe and take the advantage in the power of sun. The country should
build up the Indian PV industry along the PV value chain by integrating wafer and poly manufacturing
apart from cell and module.
We urge the customers to not to invest in low quality which will jeopardize their business.
The companies looking to invest in this sector should focus on quality and cost. They should build up
scale so that the cost can be at par with leading cell makers from China and Taiwan.
What kind of boost does the National Solar Mission give for companies such as yours?
We are here in India to support and enable the National Solar Mission, one of the objective is to take a
global leadership role in solar manufacturing (across the value chain) of leading edge solar
technologies and target a 4-5 GW equivalent of manufacturing capacity by 2020, including setting up
of dedicated manufacturing capacities for poly silicon material to make solar cells. The local regulation
is a growth driver and with our subsidiary in India we have taken a key step to tap these tremendous
potentials by way of our local presence.
The Indian government shows the commitment to establish an Indian PV market for the Indian people
and sake of humanity. Centrotherm’s vision is to enable PV electricity for everyone and enabling the
Indian people.
There are few listed companies like Indo Solar and Moser Baer. What is your take on such
companies?
As a company policy we do not comment on specific companies. However, we believe that as the
market matures, more companies will tap the equity market to fund their plans. There should be more
Indian companies driving the Indian PV industry, so that this industry will become more significant.
Indian companies have to jump start their PV industry to become competitive, Centrotherm the leading
c-Si turnkey supplier will like to support and partner with these companies.
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