Growth Opportunities in the Cleantech Industry

1. Growth Opportunities in the Cleantech Industry The World Bank Knowledge Economy Forum IX, Berlin Nikolai Dobrott, Managing Partner May 7, 2010

2. Between 2010 and 2030 global primary energy demand is projected to grow by 34%. Projected Primary Energy Demand [Mtoe] 18,000 16,000 2010 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Source: IEA World Energy Outlook 2009.

3. Globally renewable energy deployment has grown significantly. World renewable net electricity generating capacity development [GW] Source: IEA Renewables information 2009.

4. Promoting clean technologies represents a highly attractive opportunity to meet future energy challenges. Advantages of clean technologies Global renewable energy market size in 2008 and 2018e [billion USD] • Less dependency on fossil fuels and prices • Energy security through diversified energy mix • Decentralized energy supply and cost-effective opportunities for rural electrification • Highly reduced CO2emissions and opportunity for CDM projects • Creating a local growth industry • Qualified jobs Source: Clean Edge 2009

5. Within ten years installed renewable capacities in Germany have almost quadrupled. Cumulative installed capacities [GW] Source: BMU 2010

6. Renewable energies have become a significant industry in Germany. Renewable energies in numbers (2009) Job development in the renewable energy sector 2004–2009 • 16.1% of electricity consumption • 8.4% of heat production • EUR 17.7 bn investment in new installations (+19.4%) • EUR 33.4 bn in revenues (+8.9%) • 292,900 jobs in total 292,900 274,800 252,800 236,300 163,500 Source: BMU 2010

7. The eastern German ‘Solar Valley’ – an example for successful cluster development. Equipment for thin-film, automation laser processing • Area: 108,585 km² • Inhabitants: ~16 million (1/5 of Germany’s total; incl. 3.5 million in Berlin) • Eastern Germany features the world’s largest PV industry cluster: • Wafer-based technology: 28 companies with a production capacity of more than 3,7 GW • Thin-film technology: 26 companies • Equipment suppliers: 13 large companies • Research: several world-class institutes • Education: several universities and colleges with solar-specific courses • Approx. 15,000 direct employees Hamburg Berlin Leipzig Leipzig Düsseldorf Dresden Frankfurt Solar Valley Frankfurt Stuttgart Munich Germany Equipment manufacturers PV companies Research institutions Source: Germany Trade & Invest 2009.

8. By implementing effective policy measures, Germany has taken the lead in solar energy within a few years. Annually installed PV capacities [MWp] PV industry turnover development [m EUR] 4,000 Renewed feed-in tariff law 3,500 3,000 Renewed feed-in tariff law 2,500 2,000 Feed-in tariff law 1,500 100,000 roofs program 1,000 500 Source: BMU 2010.

9. Best practice example for short term policy measures: 100,000 roof program in Germany. Key data of the program Annually installed PV capacities [MWp] Duration: 5 years (Jan. 1999 – Dec. 2003) Effects: • Generated 345 MW of installed capacity, almost 100% of total PV growth during this period • 73,787 loans supported • Total loan volume: EUR 1.6 bn. Costs: ca. EUR 250 million Policy design: • Long maturity loans with low interest rates: 1.9% p.a. undertaken by state-owned KfW bank Further policy measures during program: • Renewable Energy Sources Act (2001) 100,000 roofs program Source: Apricum Research 2010

10. Reliable government support leads to high installed capacities and the development of local manufacturing. Installed capacity 2009 Germany Best practice Spain Japan USA Italy South Korea France China PV cell production world market share 2009 Source: Apricum Research 2010

11. Major drivers for cluster development are dependent on political will and commitment.

12. Apricum proposes a three-way approach to develop a self-sustaining Cleantech cluster. Domestic demand Local manufacturing R&D • Extension of market incentive schemes (e.g. FIT), specifically targeting identified key solar applications. • Enabling targeted incentives for key innovations • Promoting Cleantech and solar energy R&D • Exploiting the full potential of the pool of well-educated and versatile workforce. • Developing targeted manufacturing incentives in identified key solar applications. Self-sustaining Cleantech cluster

13. Apricum has the experience and strength to support your location in cluster development. • Global Cleantech industry and market expertise competency • experience in economic development: • Thorough understanding of industry requirements for market entry, location analysis and site selection • Excellent connection to industry players worldwide • Experts in investment promotion and cluster development including market and manufacturing incentive schemes • Consultancy project record for states and regions in Germany, USA and Middle East • International team of experienced consultants • Country representative in emerging markets

14. SERVICES Institutional/governmental advisory– selected references.

15. SERVICES Institutional/governmental advisory– selected references.

16. SERVICES Institutional/governmental advisory– selected references.

17. Apricum GmbHNeue Grünstr. 17 | 10179 Berlin | GermanyT. +49.30.308 77 62 - 0 | F. +49.30.308 77 62 - 25info@apricum-group.comwww.apricum-group.com

18. Back-up.

19. Renewable industries turnover in Germany (2009). Water EUR 1.4 million Solar thermal EUR 4.9 million Biomass 11.4 million Total EUR 33.37 million Wind EUR 5.6 million Solar PV 9 million Source: BMU 2010.

20. Capacities vs. cell production share 2009.