energysmart 21

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4E n e r g y S m a r t I S S U E 0 0 2 1

The day we begin tolive beyond ourecological means

9

th October 2006 has

been declared byGlobal Footprint

Network (GFN) to be

the World OverShoot

Day. It was the day

when the world

exceeded its capacity

to replace the natural

resources consumed

by mankind.

by : Wei-Nee Chen

Solar

Photovoltaic A VIABLESOLUTIONTO CLIMATE

CHANGE


2/16

It was the day when the world was declared to be in

ecological debt and living on advance credit that belongs to

tomorrow. It was the day when we began to live beyond our

ecological means.

The research reported by GFN estimated the Earth took 30

percent longer time to replenish what had been consumed

by mankind from nature. This means for each year of natural

resources consumed by the humans, it would take 15

months for Mother Earth to replace the resources. This

creates an ecological deficit. And the critical effect of the

ecological deficit is climate change which pushes ecological

boundaries beyond the limits.

According to the Intergovernmental Panel on Climate

Change (IPCC), the Global Climate Models (GCM) forecast

that by the year 2100, global temperatures could increase

between 1C and 4.5C. Assuming higher concentrations of

the greenhouse gases (GHGs), the GCMs also project higher

global precipitation, with the highest in areas at higher

latitudes during winter. With such changes in temperatures

and rainfall, sea levels are expected to rise between 13 and

94 cm within 100 years.

According to a 2005 report from Conservation and

Environmental Management Division of the Malaysian

Federal Ministry of Natural Resources and Environment,

forecasts have been made based on climate modeling which

showed that Malaysia could experience temperature changes

from +.7C to +2.6C, and precipitation changes from -30

percent to +30 percent. The impact due to these changes in

temperature and precipitation would affect coastal areas and

water resources, public health, forestry and agriculture.

Facts on Global Warming:

Global warming is caused by heat trapped by a

layer of greenhouse gases due to human

activities that result in the release of more GHGs

and increase in average temperature.

IPCC declared in 2001 that human activity is the

main force behind global warming.

Solar Photovoltaic - A Viable Solution toClimate Change

E n e r g y S m a r t I S S U E 0 0 2 1

Source: Sterns Report

Global Footprint Network is a non-profit organization which was established in 1993 in the United States. GFN is committed to promoting ecological,social and economic sustainability via the scientific rigor and practical application of the Ecological Footprint, a tool that quantifies human demand onnature, and nature's capacity to meet these demands.


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Climate change A Call for Concerted Mitigation

Efforts

In a recent Green Building Mission Campaign organized by

PUSPANITA in collaboration with the Ministry of Works and

Public Works Department, our YAB Prime Minister delivered

a message to the nation, regarding being a responsible

custodian of the earth. He reminded that as much as the

Government is putting in efforts to mitigate climate change,

every individual has a part to play to be the solution to

climate change. Climate change demands a concerted effort

to mitigate the root cause and no one is immune to its

effects.

What can solar do to mitigate climate change?

According to astrophysical studies, the solar system, along

with the Earth and other planets will last for another four

and a half billion years. Every year, the sun delivers 15,000

times more energy than is consumed by the entire human

population. Thus, the sun exists for a reason, it is to supply

the energy needs for the entire solar system. In his book,Solar Economy, Dr Hermann Scheer, founder of Germanys

Renewable Energy Resources Act (EEG), stated that all

renewable energies stemmed from solar resources. Examples

of these renewable energies included solar photovoltaic (PV)

electricity, solar thermal energy, including electricity

generation, wind power, water power, wave power, biomass

for energy generation and ocean surface heat.

Solar Photovoltaic: Technical Potential in Malaysia

In Malaysia, the total electricity demand in year 2005* was

85,260 GWh. If an average irradiance for Malaysia is taken at

1,643kWh/m2 and the total land area for Malaysia is

328,550km2, in order to meet the total electricity demand (in

2005), the PV system required will cover an area of 431km 2

which is less than 0.13 percent of the total land area inMalaysia! If we can utilize the suns energy to provide our

total electricity need by using the PV, then we can avoid as

much as 54 milion metric tonnes of CO2 emission per

year!**

Global Emisions by Sector

ENERGYEMISSIONS

NON-ENERGYEMISSIONS

To gain a better appreciation of the factors causing GHG, the

pie chart shows the global emissions by sector. The highest

contributor to the global emission in year 2000 was from the

energy (power) sector. Therefore, it is only logical that we

should reduce the use of electricity generated by fossil fuels in

order to reduce GHG emissions. This can be achieved by

applying energy efficiency in our homes, commercial and

industrial buildings; and increasing the use of clean andrenewable form of energy for power generation.



Efforts appreciated: Dr Anuars constant participation as a speaker inpromoting EE & RE is recognized by YAB Prime Minister at the GreenMission Campaign, March 2007.

Power 24%

Industry 14%

Other energyrelated 5%

Waste 3%

Agriculture 15%

Transport 14%

Buildings 8%Land use 18%

To understand more about photovoltaic

technology, please see Energy Smart, issues 19 &

20.

* based on Statistics of Electricity Supply from Suruhanjaya Tenaga**1 unit of electricity produced (kWh) is equivalent to 0.63kg of CO2 emission

Source : Stern Report


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everyone will have enough land area at the back of their

homes to grow resource-yielding crop for biomass or have

sufficient water or wind power to harness for power

generation.

However, the lure of solar PV lies in the fact that the PV

modules serve multiple functions and are practical

electricity generation technology even for the smallest

home. PV system is godsend as it works silently, emitting no

harmful gases, has aesthetic value which integrates

harmoniously with building architecture; and if integrated

as part of the building envelope, it becomes a building

material on its own! The PV system typically comes with a

performance guarantee for a minimum of 20 years and has

a lifespan exceeding 25 years. For the homeowner, having

a PV system will hedge the system owner against inevitable

tariff hikes in the future and since the system has no

mechanical parts, the maintenance effort and costs are

minimal.

The lure of PV

According to Dr Hermann Scheer, PV and solar heating offer

the widest spectrum of solar energy use and the technical

availability is enhanced by the fact that the supply chain is

extremely short. Other renewable energies such as wind and

water power are limited by the geographical topography;

while biomass is limited by the availability of suitable land;

provided the land is not in contention with arable crops.

The shorter supply chains for PV (starting from electricity

generation) bring a double environmental bonus. Besides

minimal environmental impact, the transport costs are much

smaller. In economic terms, this means that capital costs for

infrastructure are reduced, compared to electricity

generated from conventional means. So what does this

mean to the individual? While the Government calls for the

individual citizens to play a role in mitigating climate

change, as far as electricity generation is concerned, not



Photo of a polycrystalline solar cell


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For the commercial sector, having the PV system installed as

part of their office building or incorporated into their project

is one way in which Corporate Social Responsibility (CSR) is

integrated into their business operations and strategies.

Companies are changing the way they run their businesses

and demonstrate CSR. Staying carbon neutral or reducing

carbon no longer means cutting profits. On the contrary,

Cut Carbon, Grow Profits, a book co-edited by Dr Kenny

Tan and Ruth Yeoh showed how companies can afford to

reduce carbon emissions while not compromising their

profits. Indeed, PV business is a growing lucrative energy

business. Please do read the report by Mr. Daniel Ruoss for

the outlook of PV business at regional and international level.

For any embroynic market to survive, and PV in Malaysia is

one of them, it is crucial that the Government provides

conducive supporting mechanism in order to nurture the PVmarket in a sustainable manner. In the same issue, Ir. G.

Lalchand, Technical Advisor of Policy Development will

address various and proven successful regulatory PV schemes

practiced by many countries.

Sir Nicholas Stern in his recent report predicted a 10 to 20

years window of opportunity to act before the damage due

to climate change passes the point at no return. Climate

change can only be stopped if we are prepared to resolve the

tragedy of the commons and act according to our

conscience. Perhaps it may helpful to remind us that the sun

existed to meet mans energy needs.

We welcome your comments; please email to

[email protected]. Energy Smart reserves the right to

publish selected comments.

Residential House at Country Heights Damansara 4kWp PV System retrofitted on to the roof

The fastest growing energy technology in the

world is grid-connected solar photovoltaic (PV),

which grew in installed capacity by 60 per cent per

year from 2000-2004, to cover more than 400,000

rooftops in Japan, Germany, and the United

States.

Renewables 2005: Global Status Report


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In a few short years, the PV industry has exploded, going

from an industry that easily survived off the table scrapes of

the integrated circuit industry to one that dominates the

world usage of silicon. Such growth is not without risks and

set-backs. PV cell and module manufacturer added new

capacity to their production lines, buying what ever supply

was available to spot market prices often 5 to 8 times higher

than market prices in 2005. New companies entered the PV

business to benefit from the high profit with PV products but

found themselves within few months with idling equipment

or even bankruptcy. Competency in the respective

manufacturing, good international network and an excellent

understanding of the worldwide PV market are a MUST

before entering the PV business. It is similar to the

development of PV system installers. System integrators or

service providers have had to add to their ranks with little

formal training available to help them become competent

and to meet market demand. But to provide satisfactory

service one needs to be competent and trained in the tasksperformed. Thus, to ensure a successful business and

satisfied customers the company should address its

competency and how to improve. Often quantity is driving

the market - but quantity AND quality drive your business to

success.

We look forward to working closely with you and introduce PV

as business in Malaysia. For further information regarding the

activities in the PV industry enhancement activities or feedback

on the newsletter, please email to [email protected].

Malaysia News

PTM ZEO Building: As at May 2007 around 580kWp

cumulative PV capacity has been installed. Two grid-

connected PV systems in the building are to be highlighted;

one is PTM ZEO and the other a bungalow at Damansara

Country Heights. The 4kWp CIS PV system in Damansara

Country Heights was commissioned in March 2007 and is an

attractive example how to install PV even as roof-mounted

From the deskof Daniel Ruoss


Dear MBIPV and industry stakeholders,

system. The 92kWp PV system at PTM ZEO (Zero Energy

Office) is close to completion and the four different PV

systems are installed and ready to be commissioned.

First Solar, Inc. announced on Friday 25th January 2007 that

it will expand production with a new four-line solar module

manufacturing plant with an expected minimum annual

capacity of 100MW. The manufacturing plant will be located

in Kulim Hi Tech Park located in Kedah, Malaysia and when

fully ramped will employ approximately 500 people. Plant

construction is scheduled to begin in April 2007 and

conclude late in 2007, with production planned to begin in

the second half of 2008. The total plant investment is

estimated to be US$150M and the manufacturing site can

accommodate future expansion.

"We are very pleased to be working with the Malaysiangovernment, the State of Kedah, and the Kulim Hi Tech Park

and look forward to a strong long-term partnership," stated

Michael Ahearn, Chief Executive Officer of First Solar. Y.Bhg.

Datuk R. Karunakaran, Director General, Malaysian Industrial

Development Authority (MIDA), said, "The Government

welcomes First Solar's investment as it is the first project to

manufacture solar modules in Malaysia. This investment

brings to Malaysia the latest technology in the solar energy


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sector." First Solar, Inc. manufactures solar modules with an

advanced thin film semiconductor process that significantly

lowers solar electricity costs.

Asia News

Manufacturing of solar modules will soon be in place in

Malaysia and a view across the border shows that Singapore

is rather active too. Solar Energy Power Pte Ltd is

manufacturing solar cells (40MWp/year) and Sunseap

Enterprises Pte Ltd is manufacturing TUV IEC61215 certified

mono-crystalline modules (6MWp/year). Sunseap is mainly

manufacturing for the German and off-grid market, withremaining production for other markets such as Malaysia. For

more info visit www.sunseap.com

Although Singapore has a very small local PV market and the

country has no PV policies at this point in time, Singapore

maintains a recognizable PV industry. Besides Sunseap Ltd.

and SEP Ltd., there are subsidiaries from many world leading

PV enterprises such as:

Conergy/SunTechnics; turn-key provider for all RE

applications.

Schco; specialized in BIPV and grid-connected PV

application, plus solar thermal collectors.

Solarworld; vertically integrated PV manufacturer and

turn-key provider for PV solutions.

Sunpower Corp, Mitsubishi and Kyocera; module

manufacturers.

Phoenix Solar Ltd (subsidiary from Phoenix Sonnenstrom,

Germany); turn-key PV applications.

Multi-Contact; connector and cable manufacturer, and

others.

These companies are looking forward to collaborate with

Malaysian industry stakeholders.


4kWp PV system Damansara Country Heights

92kWp PV system PTM-ZEO

First Solar Manufacturing Capacities

Ohio (USA) 75MW

Frankfurt (Germany) 100MW

Kulim (Malaysia) 100MW


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International News

A photovoltaic (PV) cell achieved a

milestone in December with a

conversion efficiency of 40.7%.

Produced by Spectrolab, Inc. a wholly

owned subsidiary of Boeing and

funded in part by the U.S. Department

of Energy (DOE).

Just do it! China becomes world leader

in PV module and cell manufacturing.

The Chinese PV industry is growing at aphenomenal rate. With a small

domestic market, not surprisingly, the

export strategies of Chinese players are

focused on Europe and USA. The

Chinese manufacturers are convinced

the silicon shortage problem will be

resolved within 2 years, resulting in a

serious price decrease for solar modules

and the largest manufacturers in the

world have already sealed their stakes

or supply agreements with Chinese

producers. Chinese companiescompletely unknown a year ago, are

now renowned in the European

markets.

Large solar fab to be built in India

An exciting PV business showcase

comes from India; Moser Baer India Ltd,

a world leader in removable data

storage media, established Moser Baer

Voltaic Ltd in 2006. Start-up capital was

RM60 million and in February 2007

Moser Baer signed a first wafer supply

deal with Deutsche Solar. The wafer

supply deal was very important to

sustain the targeted growth of the

company. In March 2007 the first40MW c-Si cell manufacturing line

went online and second line (again

40MW) is planned to be operational in

September 2007.

Moser Baer also recently announced

that it will invest an impressive

US$250M in the development of a thin

film solar cell laboratory. Moser Baer

has partnered with Applied Materials,

an American technology firm, to

develop the plant, which will have anestimated production capacity of 200

MW by 2009.

"According to market figures, the thin

film based solar modules market is

expected to reach a size of US$5 billion

globally by 2010 with a demand of 2

GW," Mr. Deepak Puri, Moser Baer's

Chairman and Managing Director, said.

This plant would therefore be able to

provide as much as 10% of the world's

thin film demand.

The plant will be located in New Delhi

and it will become the world's first

Gen-8.5 thin film solar module

production line, with panels chunked

out at a size 4 times bigger (up to 5.7

m2 per module) than those being

produced today, which is expected to

reduce manufac tur ing cost s

substantially. This news undoubtedly

represents a further step in the

reduction of costs of renewable energy,

and therefore also a step further in

making renewable energy competitive

with traditional energy, especially if the

latter's externalities, namely carbon

emissions, are taken into account.

Australias NSW ParliamentHouse is going green.

Solar modules will be installed to power

lights in both the upper and lower

houses, while energy-efficient bulbswill be installed throughout the

building. Energy Minister Joe Tripodi

said the work was part of a $3.4 million

energy saving program which would

cut the amount of greenhouse gas

emissions from the building by 25 per

cent. The program also includes the

installation of variable-speed fans,

movement sensors on bathroom lights

plus energy-efficient air-conditioning

systems and food storage chillers. The

solar modules will be installed on theparliament's modern office extension

section at the rear of the building's

historic Macquarie Street frontage.


Mr. Deepak Puri

Chairman and Managing Director

Moser Baers


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GE builds one of the largest solar facilities in the

world

52,000 solar modules make up GE's most recent solar facility,

adding up to 11 MW and able to provide power to 8,000

households. After eight months of construction, GE Financial

Services, Powerlight (a subsidiary of SunPower Corporation)

and Catavento, have inaugurated the 11 MW solar plant,

located in the Alentejo, 200 km south of Lisbon, Portugal.

The facility, which was purchased by GE last year at

approximately $75 m, has been designed and built by

Powerlight, who will also maintain the plant. The area

occupied by the plant is equivalent to more than 80 footballfields and will save more than 30,000 tonnes of greenhouse

gases a year.

The 6MWp PV system "Rote Jahne" is currently the world's

largest photovoltaic project utilizing thin film modules from

First Solar. It is located in Saxony, Germany and will producearound 6 GWh of solar electricity per annum. Testing and

commissioning was in April 2007.

Price Index

The following graphs present the worldwide pricing trends of solar modules and inverters. The price reflects retail cost and serves

as an indication only.

Following links provide further information on industry and country news:

- www.solarbuzz.com - www.epia.org

- www.iea-pvps.org - www.solarplaza.org

- www.photon-magazine.com - www.renewableenergy.com

- http://en.china-solarenergy.com - www.enf.cn


Solar modules (1st May 2007) Inverters (1st May 2007)


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IntroductionThe Malaysia Building Integrated Photovoltaic (MBIPV) project is

a Renewable Energy (RE) initiative by the Government of

Malaysia (GoM) under the 9th Malaysia Plan. This National RE

project is fully supported by United Nations Development

Programme (UNDP) and Global Environmental Facility (GEF).

The aim is to promote sustainable application of grid-

connected BIPV power generation systems in urban residential

and commercial premises in Malaysia.

The project component on policy development included a

review of international practices on regulatory and institutional

frameworks to promote PV applications in several countries.

This study documented various successful schemes and

initiatives in order to propose optimum policy for the Malaysian

Government to consider and implement to ensure the market

for grid-connected BIPV technology can be sustained beyond

the project period. The full report can be downloaded from the

MBIPV Project website at

http://www.ptm.org.my/bipv/MBIPV_project.htm.

The installed capacity of PV generation systems has grown

exponentially on a world-wide basis although the growth rates

vary significantly between countries. The variations depend on

their support mechanisms to promote RE in general and PV in

particular.

It is pertinent to note that growth rates in installed capacity are

most pronounced in countries producing the bulk of the

primary PV system components. This correlation shows that

government support for PV generated electricity as an

investment has produced exceptional economic development

in terms of GDP (gross domestic product) output from

domestic, and export demand for the products. In addition, the

economic benefits included substantial and growing local

employment, foreign exchange income from exports, as well as

technology price reduction that benefit the consumers, and

technology development through R & D.

Review of

International Regulatory

Schemes for PVBy Ir. G. Lalchand


Diagram 1 PV cell production and PV installations in2004

Diagram 2 Development of the World's PV cellproduction


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The chart shows the countries with the most impressive

growth in development of installed PV capacity.

Since late 2005, Germany has overtaken Japan as the

country with the highest annual capacity of PV system

installations.

The price of PV modules has seen a dramatic reduction over

the past 30 years as can be seen from Diagram 4. From a

price of around EUR 80 per Wp (RM370 per Wp) in the mid

seventies, the price has come down to around EUR 3 per Wp

(RM14 per Wp). The price is expected to decline further as

demand grows.

Policy Measure Overview

A common finding is that PV generated electricity is costly

compared to electricity generated from conventional fuels if

seen strictly from the financial perspective. This in fact applies

to all forms of renewable energy until the particular

technology matures coupled with the economies of scale to

become competitive over a period of time. A good example

is wind generated electricity, which can now compete with

conventional energy generation in suitable locations.

BIPV has yet to reach such maturity but is closing in on grid-

parity in countries where the retail electricity prices to

consumers are high. Examples are Japan and several

countries in Europe, particularly for peak power rates where

ToU (Time-of-Use) rates are applied and where the demand

peak occurs during PV electricity generation period.

Review of


Schemes for PV


Diagram 3 Installed PV capacity 1992-2004

Diagram 4 - PV module prices (USD per W) againstcumulative shipment in MW


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Review of


Schemes for PV


Successful Support Mechanisms

A number of countries have been very successful in promoting and adopting RE, in particular PV, through an optimum mix of the

various incentives. In some cases the optimum mix of support mechanisms has been developed through practical experience with

different alternatives with varying success over a period of time. Other countries have however, been somewhat less aggressive in

such promotion with the result that their success in adopting RE has also been less impressive or less consistent.

The relative success of the incentive schemes can be gauged from the rate of increase of the PV capacity installed in the respective

countries. The most impressive rate of development of PV installations is in countries like Germany and Japan, where cohesive

programmes with attractive supporting incentives have been introduced. Where the incentives have not been so cohesive or

consistent, the development has been less consistent (stop-and-go form of development).

It is important to recognise that the EEG has managed to significantly catalyse RE penetration in Germany. The fund to pay for

the FiT is generated from a levy equivalent to 2.5% of the cost of household electricity in Germany (about 40 per household

annually). The FiT is provided to various RE sources and for specific periods. The success of FiT is widely recognised and is being

replicated by many countries as shown in Table 1, and widely promoted by the European Photovoltaic Industry Association (EPIA).

Example of a successful programmeThe accompanying chart shows the installed capacity growth under different incentive schemes, with the most successful being

the EEG (Renewable Energy Sources Act) which provided for very attractive FiT for PV generated electricity

Diagram 6 Cumulative and annual PV Implementation in Germany


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The first rebate programme provided a grant element of 60% and developed standard systems that were marketed at favourable

prices. The rebate during the later SOL 1000 programme was reduced to 40% and electricity export was based on net-metering.

In spite of strong initial interest from about 3,000 prospective applicants, a change of government led to changes in the

participants payments under the programme and only 470 kWp was implemented by end of 2004. This demonstrates the stop-

and-go nature of development in the absence of sustained support.

Diagram 8 Cumulative and annual PV implementation in Denmark [1]

This summarized report gives a clear indication of the types of incentives needed to drive the widespread adoption of clean

renewable energy. The support required for PV generated electricity is higher than that for some other more mature RE

technologies, but solar PV forms the only perpetually renewable, indigenous source of electricity supply.

Promotion of grid-connected PV creates opportunities for generous national economic development, job creation and R & D in

the industry, and foreign exchange earnings. It is essential that policy decisions to promote PV technology for indigenous use must

recognize the need for long term commitment by the government for a fully intergrated policy framework to generate growing

industry development and future energy security.

Review of


Schemes for PV


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Announcement of Events


1. Launching of National SURIA 1000 Programme

22nd June 2007, 3:30 5:30pm

Venue : Putrajaya Marriott Hotel

Organizer : MBIPV Project

A national programme, SURIA 1000 will be officially

launched by YAB Prime Minister, Dato Seri Abdullah Ahmad

Badawi. The programme administered by the MBIPV Project

will provide capital incentives to residential and commercial

building owners and property developers to install BIPV via

bidding process. The objective of this capital incentive is to

stimulate local PV market demand to raise awareness to the

general public about generating clean and renewable

electricity from the sun. You are invited to witness the

launching event. For more information, please visit

www.ptm.org.my/bipv.

2.Malaysia PV Industry Day

20th 21st August 2007

Venue : Putrajaya Marriott Hotel

Organizer : MBIPV Project

Supported by : International Energy Agency

Photovoltaic Power Systems (IEA PVPS)

This event is a part of the industry development and

international collaboration program for Malaysian industry

under the Malaysian Building Integrated Photovoltaic

(MBIPV) Project. The event consists of a seminar (two

mornings) on development for the local PV industry with

lessons learnt from Europe, Japan, Australia and the US.

Round Table Discussions will be carried out on the two

afternoons between local and international industry players

among the MPIA members. The seminar is supported by IEA-

PVPS. It aims to increase the awareness for the local industry

on the development and opportunities of PV industry in

Europe, USA, Japan and Australia. The Round Table

Discussions are to tie up international and local industry

collaboration and to strategize and set the direction of the PV

industry development activities in Malaysia. The Round Table

Discussion is also designed to maximize opportunity for MPIA

to learn from other PV industry associations in the world.

Interested? Please email to [email protected]

Solar 2007

Cleveland, OH, USA 8 - 12 July 2007

URL : www.ases.org

ASEAN Elenex 2007

Kuala Lumpur, Malaysia 18 - 21 July 2007URL : www.aseanelenex.org

22nd European Photovoltaic Solar Energy

Conference and Exhibition

Milan, Italy 3 - 7 September 2007

URL : www.photovoltaic-conference.com

ISES Solar World Congress 2007

Beijing, China 18 - 21 September 2007

URL : www.swc2007.cn

Solar Power 2007

Long Beach, CA, USA 24 - 27 September 2007URL : www.solarpowerconference.com

Renewable Energy Indonesia 2007

Jakarta, Indonesia 3 October - 1 November 2007

URL : www.allworldexhibitions.com

17th International PV Science & Engineering Conference

PVSEC-17

Fukuoka, Japan 3 - 7 December 2007

URL : www.pvsec17.jp

Other Important PV Events

energysmart 21

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