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Business Case Study of an Organization: Solar Power Energy Company

Written by Christine Bartolata as partial fulfillment of the requirements for Technology Acquisition and Assimilation class, December 2015.

OUTLINE

A. Executive Summary a. About the Entrepreneur b. About the Business c. About the Product and the Technology

B. The Organization’s Attitude Towards the Role and Functions of Technology C. The Organization’s Process of Identifying its Technology Strengths, Weaknesses and

Needs. D. The Organization’s Process of Formulating its Technology Strategy and Technology Plan E. Description of the Organization’s Technology Strategy and Technology Plan F. The Organization’s Methods of Acquiring Technology G. The Organization’s Methods of Exploiting and Deploying Technology H. Evaluation of the Organization’s Technology Management System

a. Evaluation of the Company’s Cost and Efficiency Strategy b. Thermal Storage c. Backup and Hybridization

I. Conclusion and Recommendation J. References K. Appendix

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EXECUTIVE SUMMARY About the Entrepreneur Engr. Bernardo F. Fabula is the Founder, Chairman of the Board, Chief Executive Officer and President of Equator Energy Corporation. Fabula earned his bachelor’s degree in mechanical engineering from the University of the Philippines, under Society of American Military Engineer Scholarship when he was in the Philippine Army and his bachelor’s degree in Military Science from the Philippine Military Academy. He was a victim of defective power system of our government during his younger years in the province Oriental Mindoro until he was assigned in remote areas in Mindanao in 1985. He began his fifteen-year career in engineering and as an officer in the Philippine Army Corps of Engineer. After his retirement in 2002, he ventured into the construction business, and was able to complete 200 units of residential and commercial structure in Taguig City. He was also a subcontractor of DMCI, EEI and MDC. Thereafter, he was appointed consultant to the Philippine Army in its different BCDA funded military projects all over the country. About the Business Equator Energy Corporation was conceptualized in 1996, when the founder, a Mechanical Engineer for the Philippine Army at the time, was introduced and inspired by the many benefits of renewable energy. After his retirement, in 2001, he designed, constructed, and operated Equator Oil Station, his very first venture in the energy sector. Then in 2006, he organized ENERGY MATTERS CONSURTIUM AND CONSULTANTS (E=MC², Inc.), a consultancy firm whose objective is to provide and publish information on Nuclear Energy in the Philippines. In the same year, he became a member of the American Nuclear Society (ANS) and Philippines Society of Mechanical Engineer

In 2009, while in San Antonio, Texas, USA, he organized Filamex Corp. to engage in the design and installation of solar systems for residential houses. He honed his craft by attending seminars and trainings given by different renewable energy organizations in the USA like the American Wind Energy Association (AWEA) and American Solar Energy Society (ASES). He just acquired two courses in Advance Photovoltaic (PV) Design Course in Austin Texas. In 2011, he established Equator Energy Corporation (EEC) in the Philippines with the mission of reducing energy cost for Filipinos through a determined campaign in the use of solar and wind energy. With the success of Equator Oil Station as the first energy efficient gas station with 25% of its energy usage covered by solar power, he decided to pursue a bigger dream: to provide Filipinos with a cheaper and cleaner source of energy. With this objective in mind and determined to make it a reality, he established Equator Energy Corporation in November 2011, and the company is now setting a trail to become the Philippine’s largest solar and wind energy provider. Today EEC extends its services in Metro Manila covering 17 municipalities and is expanding its services to outlining areas.

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About the Product and the Technology Business Concentrating solar power (CSP) is a power generation technology that uses mirrors1 or lenses4 to concentrate the sun’s rays and, in most of today’s CSP systems, to heat a fluid and produce steam. The steam drives a turbine and generates power in the same way as conventional power plants. The innovative aspect of CSP is that it captures and concentrates the sun’s energy to provide the heat required to generate electricity, rather than using fossil fuels or nuclear reactions. Another attribute of CSP plants is that they can be equipped with a heat storage system in order to generate electricity even when the sky is cloudy or after sunset. This significantly increases the CSP capacity factor2 compared with solar photovoltaic and, more importantly, enables the production of dispatchable electricity, which can facilitate both grid integration and economic competitiveness. CSP technologies therefore benefit from advances in solar concentrator and thermal storage technologies, while other components of the CSP plants are based on rather mature technologies and cannot expect to see rapid cost reductions. The company supplies, installs and maintains an array of alternative energy systems on every scale from industrial, commercial, and the residential (see Appendix for the complete list of products and services offered). Due to the Philippines’ particular geography and the specific energy needs, EEC provides energy systems in Solar, Wind, Solar Air Conditioning units, solar streetlights, and also small solar pump systems. They also provide services in all applications whether it is a Utility-Interactive, Stand Alone or Off Grid, Hybrid, and Net Metering systems. And they are capable of building solar and wind farms for Utilities in rural areas through Power Purchase Agreements (PPA).

THE ORGANIZATION’S ATTITUTE TOWARDS THE ROLE AND FUNCTIONS OF TECHNOLOGY

According to Engr. Fabula, the Philippines is the richest in the world to harvest free electricity from the sun (5 kWh /m2 day). However, due to absence of solar machineries, our country is now producing the smallest, the most expensive and dirtiest electricity in the world 72 % made from imported fossil based fuel (coal, petroleum and natural gas).

Based from the DOE energy statistics 2012 and also from the EIA International Energy Information Agency, Philippine total energy production for 2012 was only 72,922,000,000kWH. This quantity is so small compared to that of Japan 6.9%, US 1.7% and South Korea 15%. Since

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1"The"use"of"lenses"remains"a"theoretical"option,"because"no"CSP"plant"today,"or"any"planned"in"the"near"future,"uses"lenses."2"The"capacity"factor"is"the"number"of"kWh"produced"in"a"year"divided"by"the"product"of"nominal"capacity"of"the"plant"multiplied"by"8,760"(the"number"of"hours"in"a"year)."!

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our average irradiance or free energy from sun is higher by 70% compared to other big producing solar countries like Germany, Japan & countries in Europe. Cost of installation or initial investment is definitely lower by 70%. Solar and wind system are proven reliable and efficient in US & Germany the biggest producer of solar energy in the world. Germany and Japan have the lowest average irradiance by an average of 70 % compared to the Philippines. Investing in solar in the Philippines would make great portfolio. This is our natural treasure not available in most countries in the world. With our 72.9Billion KWH 2012 production capacity 71.53% is from imported fuel such as coal 54.19%, Natural Gas 37.66% and Petroleum 8.16% .The 28.47% is renewable energy such as Geothermal 49.3%, Hydro 49.38% and a combined solar, wind and biomass 1.25%. The Philippines is the number two in the world in producing geothermal energy next to US, but our geothermal quantity is very small not enough to sustain our growing needs. It is justifiable for countries in Asia with similar irradiance from the sun not to make solar energy like Indonesia and Vietnam because these two countries are the top 10 exporter of coal in the world. Malaysia has the commercial quantity of oil reserve. The available data inspires Engr. Fabula to pursue and expand greener technologies for communities in the Philippines.

THE ORGANIZATION’S PROCESS OF IDENTIFYING ITS TECHNOLOGY STRENGTHS, WEAKNESSES AND NEEDS

Several forces are combining in the energy industry to allow for the creation of Equator Energy array. First and Department of Energy, demand is projected to increase by about 30% over the next 30 years.

Second is the growing tide of the green movement to spur greater use of renewable sources in electric power generation. Although there hasn’t been any mandate from the Philippine government, there is already a considerable amount of users of solar power energy. One hour of the sun’s energy that reaches Earth provides more power than the entire world’s yearly energy demand. However, current technology to harness this energy is relatively inefficient, capturing less than 20% of the available energy. Also, because sunlight is inherently unpredictable due to local weather conditions, solar power probably will never be sufficient to provide baseload power needs for the world’s economies (at least using existing technologies). However, solar PV technology is well positioned to provide much needed peaking power at critical times, when demand for electricity is at its highest.

Equator Energy Corporation offers a wide-range of products from solar power system; wind power system, water pumping system and even solar streetlights and lanterns.

Solar PVs are one of the best-selling products of Energy Equator Corporation and are being

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offered in two varieties, SMARTFAB or stand alone/off-grid PV system and a HIGHBRIDFAB or stand alone hybrid PB system. The following table shows and strengths and weaknesses of PV energy systems:

Strengths Weaknesses Technology is mature. It has high reliability and long lifetimes (power output warranties from PV panels are now commonly for 25 years.

Performance is dependent on sunshine levels and local weather conditions

Automatic operation with very low maintenance requirements

Storage/back-up facility is usually required due to fluctuating nature of sunshine levels/no power production at nights

No fuel required (no additional costs for fuel nor delivery logistics) High capital/initial investment cost Modular nature of PV allows for a complete range of system sizes as application dictates Specific training and infrastructure needs Environmental impact is low compared with conventional energy sources Energy intensity of silicon production for PV solar cells The solar system is an easily visible sign of high level of responsibility, environmental awareness and commitment.

Provision for collection of batteries and facilities to recycle batteries are necessary

The user is less affected by rising prices for other energy sources Use of toxic materials in some PV panels.

In order to identify these characteristics and cater it to the needs of the consumers, Equator Energy Corporations compares each of the technology type, maps it to the system that will be used and most compatible and more importantly to the type of application. The following table shows an example of EEC’s solar power products, the system that they recommend and their application:

Technology Type (PV/Solar

Thermal) System Application PV (Solar Electric) Grid connected Supplementing main supply PV (Solar Electric) Stand-alone Small home systems for lighting, radio, TV, etc.

Small commercial/community systems, including health care, schools, etc.

Telecommunications Navigation aids Water pumping Commercial systems Remote settlements Mini-grid systems

Solar Thermal Connected to existing water and/or space heating system

Supplementing supply of hot water and/or space heating provided by the electricity grid or gas network

Solar Thermal Stand-alone Water heating, i.e. for rural clinics

Drying (often grain or other agricultural products)

Cooking

Distillation Cooling

THE ORGANIZATION’S PROCESS OF FORMULATING ITS

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TECHNOLOGY STRATEGY AND TECHNOLOGY PLAN Engr. Bernardo Fabula conducted a series of technology assessment before he made up his mind to dive into the solar power energy. In formulating his technology strategy and plan, there are three things he considered being solar power energy as a disruptive technology:

• Solar Power Energy’s Technological Structure. Solar power plants use a ground-based field of mirrors to focus direct solar irradiation onto a receiver mounted high on a central tower where the light is captured and converted into heat. The heat drives a thermo-dynamic cycle, in most cases a water-steam cycle, to generate electric power. The solar field consists of a large number of computer-controlled mirrors that track the sun individually in two axes. These mirrors reflect the sunlight onto the central receiver where a fluid is heated up. Solar towers can achieve higher temperatures than parabolic trough and linear Fresnel systems, because more sunlight can be concentrated on a single receiver and the heat losses at that point can be minimized3. Currently, the cost of installing panels for a typical residence can run as high as 2.5 million4, a significant investment barrier that requires a long breakeven period. Equator Energy Corporation will pay this cost, as well as install and maintain the system, in exchange for the rights to sell the load reduction back to the grid. The home or business owners benefit by: 1) avoiding significant upfront investment and ongoing system maintenance costs; 2) receiving a substantial decrease in their annual cost of electricity; and 3) supporting environmentally-friendly energy practices.

• Product and Support Structures. Besides solar panels themselves and cost of installation, support structures including foundations, mirrors and receivers are also key components of a solar power system.

Summary of EEC’s Strategy and Technology Plan:

Parabolic Trough Solar Tower Linear Fresnel Dish-Stirling

Typical capacity (MW) 10-300 10-200 10-200 0.01-0.025

Maturity of technology Commercially proven Pilot commercial projects Pilot projects Demonstration projects

Technology development risk Low Medium Medium Medium

Operating temperature (oC) 350-550 250-565 390 550-750

Plant peak efficiency (%) 14-20 23-35* 18 30

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!3!In addition to power generation, solar towers could therefore also be used in many applications where high temperature heat or steam is required.

4!Estimated"startGup"cost"as"part"of"Equator"Energy"Corporation’s"initial"Business"Plan"and"Implementation"Strategy.!

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Annual solar-to- electricity efficiency (net) (%) 16-Nov 20-Jul 13 25-Dec

Annual capacity factor (%) 25-28 (no TES) 29-43 (7h TES) 55 (10h TES) 22-24 25-28

Collector concentration 70-80 suns >1 000 suns >60 suns (depends on secondary reflector) >1 300 suns

Receiver/absorber Absorber attached to collector, moves with collector, complex design

External surface or cavity receiver, fixed

Fixed absorber, no evacuation secondary reflector

Absorber attached to collector, moves with collector

Storage system

Indirect two-tank molten salt at 380oC (dT=100K) or Direct two-tank molten salt at 550oC ( dT=300K)

Direct two-tank molten salt at 550oC (dT=300K)

Short-term pressurised steam storage (<10 min)

No storage for Stirling dish, chemical storage under development

Hybridisation Yes and direct Yes Yes, direct (steam boiler) Not planned

Grid stability Medium to high (TES or hybridisation) High (large TES) Medium (back-up

firing possible) Low

Cycle Superheated Rankine steam cycle

Superheated Rankine steam cycle

Saturated Rankine steam cycle Stirling

Steam conditions (oC/bar) 380 to 540/100 540/100 to 160 260/50 n.a.

Maximum slope of solar field (%) <1-2 <2-4 <4 10% or more

Water requirement (m3/MWh) 3 (wet cooling) 0.3 (dry cooling)

2-3(wet cooling) 0.25(dry cooling)

3 (wet cooling) 0.2 (dry cooling)

0.05-0.1 (mirror washing)

Application type On-grid On-grid On-grid On-grid/Off-grid

Suitability for air cooling Low to good Good Low Best

Storage with molten salt Commercially available Commercially available Possible, but not proven

Possible, but not proven

DESCRIPTION OF THE ORGANIZATION’S TECHNOLOGY STRATEGY AND TECHNOLOGY PLAN

One of the most common practices of EEC in terms of Technology Strategy and Planning is having project management or project teams and oversight entities that basically have the responsibility for project implementation, costs and technology performance. This entity is the link between what the customer wants and the system suppliers and the installation contractors do to deliver, install and commission the system.

• A Team of Contractors. The installation of systems needs to be done to high standard and at low cost. This is best done by small contractors with low overhead that is facilitated by the way they are able to collaborate with the project management. The

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contractors are the local ‘face’ of the organization.

• A Team of Suppliers. Equipment is manufactured in volume by a small number of companies. In most cases they benefit from high volume and economies of scale.

• A Typical Project in the Project Portfolio. A building owner wants to install a solar

system or improve the energy efficiency of a building. There are different ways to proceed:

! The owner purchases and installs the items needed to improve energy efficiency

using a selected team from EEC to manage the project. In this approach, the owner pays for the equipment and installation and has the benefits of energy savings accrue directly to the owner. For these projects, EEC uses ‘Construction Financing’ to fund the supply of equipment and installation and earns a return from the scale of the project.

! The owner agrees to have a solar energy system installed with EEC retaining ownership of the equipment. The benefits of energy efficiency improvement accrue to the owner and EEC on an agreed basis.

THE ORGANIZATION’S METHODS OF ACQUIRING TECHNOLOGY

Equator Energy Corporation has sister companies namely, Smartfabs Solar and Wind Enterprise, Fabula Construction and Equator Oil Station. Equator Oils Station was his first venture in the energy sector. However, the entrepreneur has first acquired this technology through reverse engineering. EEC has the capacity of 7.5MW per annum and has the following facilities:

• Sorters and testers • Laser scriber • Glass Washing Machine • Soldering Table • Trolleys • EvaCutting Table • Framing Machine • Laminator • Sun Simulator

While the infrastructure developed by Engr. Fabula is used to propagate the technology through reverse engineering and other means; the resultant multiplier effect serves as a learning curve and a basis for developing expertise in the chosen area of discipline. The establishment of Equator Energy Solar Plant using imported technology from China is also to serve the same purpose.

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The Solar Panel Plant was established with the following objectives:

• To provide infrastructure for the exploration of renewable energy mainly solar photovoltaic.

• To provide infrastructure for the provision of energy through alternative source especially solar.

• To provide a learning curve for R&D in the development and production of solar cells using raw materials.

• To reverse engineer the machines as well as production of parts and components at cheaper cost.

• To develop capacity and core competencies in various areas of renewable energy, specifically in solar panels production.

• To deploy the facility to generate revenue while retaining its public property and training center.

THE ORGANIZATION’S PROCESS OF EXPLOITING AND DEPLOYING

TECHNOLOGY

Equator Energy Corporation developed solar power technology in two stages. Stage 1 consisted of a pilot program that demonstrated the proof of concept and provided institutional learning. This was sized with just enough solar installation to comfortable meet the minimum energy contribution required to participate as a system load reducer. The next stage, Stage 2 consisted of a ramp-up to more than 100 home installations (or commercial equivalents) and was sized to generate adequate revenues to support an on-going business.

Commercial Division EEC has defined a goal of 300kW of power needed in order to meet the minimum requirements of the marketplace. This minimum to bid is 100kW. The management claimed that a redundancy of the number enabled them to safely meet their requirement without incurring costly nonperformance penalties. In order to ramp up the array to the minimum requirements as quickly as possible, they launched a marketing effort to commercial customers first. They targeted all types of commercial and government facilities. The object however, should be to look for locations that will provide maximum potential for the array. Soon, EEC was not able to install solar panels to residential areas but alto to green powerhouses and local and regional establishments. In Stage 1, primarily the founders operated the commercial division. One person was responsible for building and maintaining a relationship with their principal supplier and the contracting companies that were used to build the array. Engr. Fabula along with their corporate attorney were responsible for contracts and developing a streamlined process for handling arrangements. On the other hand, all of the founders including one of Engr. Fabula’s closest college

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housemates share in the responsibility of developing relationships with prospective commercial sites for locating the initial array. In Stage 2, the commercial division was still operated by Engr. Fabula , the main goal being to maintain a degree of continuity to the overall vision of the business. Residential Division In Stage 1, the primary goal on the residential side was to implement a comprehensive marketing plan for residential customers. A clear message to the government and the public was crafted. In Stage 2, the residential part of the business became the primary driver of growth. A skilled manager was hired to run the unit whose responsibility was two-fold. First, local installers were contracted and trained to install Equator Energy Corporation’s banner products such as Smartfab, Water Pumping Solar Energy Power, etc. Second, the manager was in charge of developing sophisticated and seamless customer service process. Engr. Fabula has thought about the idea of outsourcing some of the mentioned processes however, it became incumbent to him eventually to ensure that quality, reliability and accountability for their products and services are still in tact. The greatest concern that they’ve had is dealing with the demand and the fear that it could exceed their ability to maintain profitability.

EVALUATION OF THE ORGANIZATION’S TECHNOLOGY MANAGEMENT SYSTEM

In the Philippines, sunlight usually exhibits a good match with electricity demand and its peaks. However, the available sunlight varies somewhat even in the sunniest places. Furthermore, human activity and thermal inertia of buildings often maintain high demand for electricity several hours after sunset. To provide a larger share of clean electricity and maximize emission reduction, EEC solar power plants needed to provide base load power. Thermal storage and backup or hybridization with fuels helps address these issues. Evaluation of Equator Energy Corporation’s Cost and Efficiency Strategy Thermal Storage All of EEC solar power plants have some ability to store heat energy for short periods of time and thus have a “buffering” capacity that allows them to smooth electricity production considerable and eliminate the short-term variation other solar technologies exhibit during cloudy days. In the last three months, EEC has begun adding to their operation in Davao, thermal storage systems into solar power plants. The concept of thermal storage is simple: throughout the day, excess heat is diverted to a storage material. When production is required after subset, the stored heat is released into the steam cycle and the plant continues to produce electricity.

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In locations with good sunlight such as the Metro Manila and the northern regions, extending electricity production to match this demand requires a storage capacity for two or four hours. In slightly less sunny areas, storage could be larger, as it also helps compensate for the somewhat less predictable resource. The solar field is somewhat larger relative to the rated electrical capacity (i.e. the plant has a greater solar multiple5) to ensure sufficient electricity production. As a result, at maximum sunlight power, solar fields product more heat than their turbines can absorb. Solar power plants with large storage capacities may be able to product base-load solar electricity day and night, making it possible for low-carbon solar power plants to compete with coal-fired power plants that emit high levels of carbon dioxide. For example, one 17 MW solar power plant under construction in Sta. Anna will use molten salts as both heat transfer fluid and storage medium and store enough heat energy to run the plant at full load for 15 hours. However, storage has a cost and cannot be expanded indefinitely to prevent rare events of solar energy shortages. Enhanced thermal storage would help to guarantee capacity and expand production. Storage potentially makes base-load solar-only power plants possible, although fuel-powered backup and hybridization have their own advantages and are likely to remain. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!5"The"solar"multiple"is"the"ratio"of"the"actual"size"of"a"solar"power"plant"field"compared"to"the"field"size"needed"to"feed"the"turbine"at"design"capacity"when"solar"irradiance"is"at"its"maximum"(about"1kW/m2)."

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Backup and Hybridization All of EEC’s solar power plants are equipped with fuel-powered backup systems that help to regulate production and guarantee capacity – especially in peak and mid-peak periods. The fuel burners (which can use fossil fuel, biogas or eventually, solar fuels) can provide energy to the heat transfer fluid or the storage medium, or directly to the power block. In areas where electricity production is less than ideal, fuel-powered backup makes it possible to almost completely guarantee the plant’s production capacity at a lower cost that if the plant depended only on the solar field and thermal storage. Providing 100% firm capacity with only thermal storage would require significantly more investment in reserve solar field and storage capacity, which would product little energy over the year.

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Fuel burners also boost the conversion efficiency of solar heat to electricity by raising the working temperature level; in some plants, they may be used continuously in hybrid mode. Solar power plant can also be used in hybrid by adding a small solar field to fossil fuel plants such as coal plants or combined-cycle natural gas plants. As the solar share in limited, such hybridization really serves to conserve fuel. A positive aspect of solar fuel savers is their relatively low cost: with the steam cycle and turbine already in place, only components specific to solar power plant require additional investment. EEC’s solar power plants can also enhance the capacity of electricity grids to accommodate a larger share of variable energy sources,

CONCLUSION & RECOMMENDATION

In conclusion, we can say the Equator Energy Corporation (EEC) is successful in deploying the acquired solar power technology due to its means and the wide variety of products being offered. However, the company is still lacking overall acceptance in to the market and there is still a need to educate the market on the many advantages that solar energy can bring may it be a source of renewable energy, the characteristics of being environment-friendly and the long-term low expenses that will benefit the consumers. Suffice it to say, there are still challenges within the company that it needs to work on in order to fully maximize the potential of the technology and set comparative advantage against its competitors. The opportunities for cost reductions for solar power plants are good. The commercial deployment of solar power plant is in its infancy in the Philippines and as experience is gained, R&D can begin, plants can get bigger and mass production of components can occur. An increase in competition in technology providers can help drive the costs down. However, significant investment in further deployment will be required to realize these cost reductions. The following strategy and implementations are therefore recommended: 1. Cost Reduction. The key areas where cost reductions need to be achieved are in:

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• The solar field: mass production and cheaper components, as well as improvements in design, can help to reduce costs.

• The heat transfer fluid: new heat transfer fluids and those capable of higher temperatures will help to improve storage possibilities and reduce costs. Direct steam generation is also a possibility, but requires further research.

• The storage system: This is closely tied to the heat transfer fluid, as higher temperatures, notably from solar towers, will reduce the cost of thermal energy storage.

• The power block: There is stillroom for cost reductions, although these will be more modest than for the other components.

• The balance of costs, including project development costs. 2. Increasing Plant Size. EEC has only been in operation for less than five years and only just beginning to be deployed at scare and for variety of reasons; many of the installed plants are relatively small. Increasing the scale of plants to include shopping malls, municipal halls and even real state commercial buildings will be an important cost reduction driver. EEC has the concentration of projects mostly in Northern region of the Philippines. The company can also partner with local and regional communities in the Visayas region to further gain market share. 3. Key Components, Complementary Assets and Delivery. Cost reductions may be accomplished by moving from heavy silver-backed glass mirror reflectors to lightweight front-surface advanced reflectors (e.g. flexible aluminum sheets with a silver covering and silvered polymer thin film).6 However, their long-term performance needs to be proven.

REFERENCES Department of Energy, Energy Date Center of the Philippines (EDCP) https://www.doe.gov.ph/services/energy-data-center-of-the-philippines Equator Energy Corporation, “Statistics, Economics and Politics of Solar Energy in the Philippines” http://equatorenergypinoy.com.ph/ European Photovoltaic Industry Association / Greenpeace, “Solar Generation” report (http://archive.greenpeace.org/climate/climatecountdown/solargeneration/

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6!Silver-backed glass mirrors are highly specular, that is to say they concentrate the sun’s rays into a narrow cone to intersect the receiver. Any new reflector solutions need to also be highly specular.

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APPENDIX

List of Products and Services 1. SUNFAB Grid Tied Solar System

The Grid-Tied Solar System, or otherwise known as a Utility Interactive system, works together with your energy provider to supply your building with energy. How it works is your solar modules receives sunlight from the sun and converts it into Direct Current (DC) electricity. This DC electricity is brought to your system’s Inverter—where it “communicates” and matches it with your utility’s (e.g. Meralco) pure sine wave frequency—whereby it is converted to AC electricity, or useful electricity for common modern day appliances. This AC electricity or power is fed into your distribution panel that energizes the building. Any excess in electricity will be returned to your Utility through your net metering arrangement. Grid Tied solar systems are common in urban areas where there is already a Utility presence. By having a Grid Tied system, it will make you a power producer and you can potentially reduce your electricity bill close to near zero, depending on your location, roof space, and its pitch or angle. Basic Components: 1 set 250 watts poly solar module 1 set grid tied inverter 1 set electrical device 1 set mounting system Notes: Performance Warranty of solar panel is 25 yrs. Material Warranty of solar material is 10 yrs. SUNFAB Solar System Capacity:

Solar System (Microinverter) Save (kwh/month) Savings (Ᵽ/month) 250W 26.0 – 37.0 Ᵽ312.00 – Ᵽ444.00 500W 51.0 – 74.0 Ᵽ612.00 – Ᵽ888.00 750W 76.5 – 110.9 Ᵽ918.00 – Ᵽ1,330.80 1KW 102.0 – 148.0 Ᵽ1,224.00 – Ᵽ1,776.00 1.5KW 153.0 – 222.0 Ᵽ1,836.00 – Ᵽ2,664.00 3KW 306.0 – 444.0 Ᵽ3,672.00 – Ᵽ5,328.00 5KW 510.0 – 740.0 Ᵽ6,120.00 – Ᵽ8,880.00 10KW 1,020.0 – 1,479.0 Ᵽ12,240.00 – Ᵽ17,748.00 20KW 2,040.0 – 2,958.0 Ᵽ24,480.00 – Ᵽ35,496.00 50KW 5,100.0 – 7,395.0 Ᵽ61,200.00 – Ᵽ88,740.00 100KW 10,200.0 – 14,790.0 Ᵽ122,400.0 – Ᵽ177,480.0

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2. BIPOWERFAB – Bimodal System A Bimodal System, or sometimes referred to as a battery based interactive system, gives consumers a constant supply of electricity even when there are outages or brown outs. The main component to this system is the hybrid inverter, which draws DC power from the batteries instead of from your solar modules. In this case, your solar modules only act as a charging source for your battery system. In normal circumstances your bimodal system operates as a Grid Tied system providing power to your on-site loads or sending excess power back to the Utility while keeping your batteries charged; but once a power outage occurs, a transfer switch automatically disconnects your system from the utility and draws power from your batteries. On the other hand, if you have to conduct maintenance on your solar system, the transfer switch disconnects your solar modules, batteries, and inverter, and directly connects all your loads to the Utility. This system can be very useful in places where power outages are frequent due to instable infrastructures or for disaster prone areas. The function of a hybrid is enabling selection and orientation of renewable energy, energy from the grid and energy storage based on consumption. Unlike conventional inverters, rather than systematically storing energy in batteries (with significant loss of yield >20%), hybrid inverters store energy only when necessary, when there is more production than consumption. This system also allows choosing whether electricity from photovoltaic panels should be stored or consumed through an internal intelligent apparatus control unit. This is possible through a technique that adds different energy sources (phase coupling: on-grid or grid-tie techniques) and the management of stored electricity in the battery (off grid technology). Hybrid inverters therefore operate on grid (grid-tie) as well as off-grid, hybrid (both on-grid and off-grid at the same time) and Backup (in case of a black out). This system is strongly recommended like in Mindanao and those typhoon prone area where there is high and long frequency of brown out. Basic Components: 1 set 250 watts solar panel 1 set lithium/lead acid/Gel type battery system 1 set hybrid inverter (On/Off Grid Inverter) 1 set PV cable 1 set electrical device 1 set mounting system Notes: Performance Warranty of solar panel 25 years Material Warranty Battery – 1 year Solar panel & inverter – 10 years Capacity of Bipowerfab Products (3KW,4KW,5KW): 3 KW Bipowerfab solar system

• On Grid system (Savings P3, 600.00 – P5, 324.00/month @P12/Kwh) • Off grid System (Production 232.35 kwh /month = P2, 788.2/month @P12/kwh

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4 KW Bipowerfab solar system

• On Grid system (Savings P4, 900.00 – P7, 100.00 /month @P12/Kwh) • Off grid System (Production 232.35 kwh /month = P2, 788.2/month @P12/kwh)

5 KW Bipowerfab solar system

• On Grid system (Savings P6, 100.00 – P8, 800.00 /month @P12/Kwh) • Off grid System (Production 333 kwh /month = P3, 996/month @P12/kwh)

3. HYBRIDFAB – Stand Alone Hybrid PV System

This system is known as a Stand Alone Hybrid system that uses two or more distributed energy sources. It is applicable in places that has no access to electricity from the Utility, and where solar and wind resources are abundant. An example of an ideal location would be island resorts. DC power from a wind or solar system is used to charge the battery bank through a hybrid charge controller. By having two or more different energy sources gives added security and yearlong continuous power.

4. SMARTFAB – Stand alone or Off Grid PV System A Stand Alone or Off Grid PV System is a type of system that operates autonomously and supplies power to the loads independent from the Utility. This system is popular in providing power to small-intermediate size loads, and is commonly used in areas when other energy sources are cost-prohibitive or not possible. The solar modules are the main generators of power, where the DC electricity is directly stored into your batteries by way of the charge controller. The inverter extracts DC power from the batteries and converts it into AC power for you to use. Because Stand Alone systems relies heavily on getting enough power from the sun to power loads continuously throughout the year, it is that much important to do a careful assessment in sizing your solar array and battery system so you can receive power even on cloudy days. Other important applications of this system are solar streetlights and small solar kits that we also offer. Basic Components: 1 set 250 watts solar panel 1 set lithium/lead acid/Gel type battery system 1 set off grid inverter 1 set charge controller 1 set PV cable 1 set electrical device 1 set mounting system Notes: Performance Warranty of solar panel 25 years Material Warranty Battery – 1 year Solar panel & inverter – 10 years

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ESC-500W solar home system

Loads Specification Load’s Watt QTY

Working HRS

Daily Consumption

Lighting Energy saving light 11 6 6 396 Fan Small fan 20 2 4 160 Color TV 21 inch 70 1 3 210 Satellite TV Receiver 25 1 3 75 Computer LED 100 1 2 200 Sub Total 226 1041 TOTAL 301W 1041Wh

ESC-1000W solar home system

Loads Specification Load’s Watt QTY

Working HRS

Daily Consumption

Lighting Energy saving light 11 6 7 462 Fan Small fan 30 2 5 300 Color TV 21 inch 70 2 5 700 Satellite TV Receiver 25 1 5 125 Computer LED 100 1 5 500 fax machine 150 1 0.5 75 printer 30 1 0.5 15 water pump 100 1 1 100 Sub Total 516 2277 TOTAL 671W 2277Wh

ESC-3KW solar home system

Loads Specification Load’s Watt QTY

Working HRS

Daily Consumption

Lighting CFL Energy saving light 11 8 6 528 Air Conditioner 746 1 4 2984 Color TV 100 2 4 800 Satellite TV Receiver/ VCD LED 25 1 4 100 Fax Machine 150 1 0.5 75 Printer 100 1 0.5 50 Computer 100 1 4 400 Water Pump 200 1 0.5 100 Refrigerator 100 1 16 1600 Washing Machine 300 1 0.5 150 Sub Total 1832 6787 TOTAL 2009W 6787Wh