Towards grid parity

 

The 29th photovoltaic solar energy Forum in Valencia which has just ended comes at the right time to give some encouragement to our economies which are slowly plunging in the crisis.
What a pleasure it was to see 4000 researchers and 1000 exhibitors brought together and overflowing with optimism in view of the prospects of world growth. Indeed, in spite of the strong downward rating of the Spanish feed-in tariffs (we are currently awaiting the publication of the Royal decree which will clarify the new legislation), other markets are developing in Europe – in France – and in the rest of the word, knowing that, to date, a few countries have invested in these technologies.

It is true that at first sight, this energy gathers many qualities, no carbon dioxide, no noise, possible integration in the building industry, decentralized energy, etc...

Like others, we are convinced at DEMETER that in the next few years we will see a very significant development of the markets spurred on by an accelerated fall of the cell costs, improvements in efficiency and the takeoff of new technologies (thin film) and new materials on the market.

We prepare for it by taking stakes both downstream of the industry (particularly with Solaire Direct in France, specialized in the engineering and the turnkey supplying of solar parks and private homeowners installations) and upstream (see our recent investment in Sulfurcell in Berlin, CIGS technology).

Let us not fall into an excessive craze:

Let us not forget initially that the system lives thanks to regulated feed-in tariffs which are expensive for the community and which, in these times of budgetary austerity, there will be logically pressures to lower them, with the collateral risk of brutal reactions of the market, as we will witness it in Spain.

One also tends to forget that the production itself of these panels requires much energy, and we are asking, such as in the biofuels’ case, for certified global assessments. Certain materials and resources used can become rare resources (example: Tellurium) or worse, being notorious pollutants (heavy metals).
In this media world accustomed to zap from trend to trend, this craze should not in addition be an excuse to bury others renewable energies as is it true that they are very often complementary in their production and their use. (We were shocked to witness this past summer some sort of anti wind turbines booing).
Finally and above all, we must keep in mind that it is not a matter of creating – at any cost – new consumer goods but to solve a collective problem.

Concerning France, we are very pleased to salute the presence of a great French scientist Daniel Lincot at the Presidency of the scientific committee of the Valencia’s congress.
This joy must be however moderated by the quasi-absence of French companies among the exhibitors.
However, each new market is the occasion to see start-ups emerging to become future world champions such as Qcells in Germany shaking-up the existing groups which have had a harder time seizing new opportunities. Although we have, thanks to Becquerel in 1839, discovered the photovoltaic effect, our future champions still do not exist. We still have the same difficulty to go from theory to practice, the same administrative red tape which discourages the initiatives and the same lack of attraction for the industry.
Yet, more than ever we should do it, for at stake is nothing less than our energy independence and the qualified jobs of tomorrow.
Our political leaders are perfectly aware of it: it is the path taken by Ministers Luc Chatel and Nathalie Kosciusko-Morizet when creating the Strategic Committee for eco-industries, of which I have the honor to chair the SMEs committee, and which must propose before the end of the year concrete measures (other than various subsidies!) to create this industry and these SMEs which we need. Thus, the next appointment is in a few months.

To finish, some news of DEMETER: our summer was studious!
3 new investments for DEMETER 1 (another 2 and the portfolio will be complete), trade sale of a company with a multiple of 2.3, gross portfolio IRR “locked” at 35% and last but not least, 1st closing of DEMETER 2 on September 10th at € 125M. The objective of € 200M will be most likely exceeded in a few weeks. We will have therefore the necessary investments capacities at the best time, since it is true that the periods of recession are generally very favorable to advised investors (which we hope to be) focused and determined (that we are) with liquidities (which we have).

Thanks again to our faithful sponsors and cornerstone investors (CDC, IFP, ROBECO, CARDIF, CIC, CNP) and welcome to the new ones (TOTAL, Crédit Coopératif, Dahlia) and to the future ones (French and International!)



  

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