Advanced SolTech Renewable Energy
SolTech Energy, through a joint venture with Chinese Advanced Solar Power Hangzhou Inc. (ASP), has become a player in the Chinese market. ASP has previously offered solar cell solutions for facades and flat industrial roofs in the Chinese market.
Advanced SolTech Renewable Energy (Hangzhou) Co.Ltd (ASRE) offers solar energy solutions as a service for customers in China. This means that ASRE builds, owns and manages the facilities and that customers commit to buying all the electricity that the plants produce on long contracts.
ASRE built its first two installations totaling 445 kW in 2014. During 2015 to 2018, since the expansion of installations has accelerated with very strong growth to reach over 93 MW installed capacity today.
ASRE aims to install 605 MW up to 2021. This would result in annual sales of just over SEK 1 billion in 2022 at full network connection
Sales are made to commercial customers (B2B) that, under long term agreements of at least 20 years, commit to buying all the electricity that each installation produces. Therefore, the customer does not pay for the installation, but instead undertakes to buy all the electricity/thermal energy that the installation produces. The customer gets access to clean energy produced by the sun at a lower price than they would have to pay to a standard supplier and, at the same time, receive a sort of rent for their roof in the form of a discount per kWh. A strong incentive you no doubt.
In addition to revenue received from customers for the electricity they buy, the joint venture company also receives a subsidies. For each kWh produced, the national government, the provincial government and the local government pay a fee directly to SolTech’s Chinese joint venture company.
Discussions are currently underway with several customers in respect of similar agreements in the Hangzhou region. The local government has shown a positive attitude towards the initiative and appears to be willing to pass on the contact details of local companies that are significant consumers of electricity. The local government believes it is important to achieve the annual quota of installed solar energy systems in the region. This quota was established by the central government as part of China’s general environmental targets.
Biggest solar energy market in the world
China has been the world’s biggest consumer of electricity since 2009. By 2040, it is anticipated that energy consumption in the country will have doubled from current levels.
China’s historical focus on fossil fuels such as coal has, combined with a rapidly growing need for energy, created an enormous environmental challenge that nobody ignores any longer. Therefore, the Chinese government is keener than ever to implement a massive expansion of solar power generation.
The target for 2015 was that the year’s installations, 15.5 GW, together with existing capacity would mean that the world’s largest solar energy market was achieved. The target for 2016 was set between 15-20 GW and 34.5 GW achieved. For 2017 the target was 40 GW and 52 GW was achieved. Which was 52% of the total installed GW in the world. By 2020 the country aims at having a installed solar energy capacity of 150 GW. But experts in the market beleive China will reach 250 GW by 2020. In order to make this a reality, huge monetary investments will be required on the part of national, provincial and local governments.
SolTech’s chairman of the Board, Frederic Telander and ASP’s CEO, Ben Wu, in front of a 325 kW installation that has been installed during 2014.
ASP:s main office.