Vilnius, Lithuania --
The early 2013 decision of the Lithuanian government to slash the
generous feed-in tariffs (FITs) has dealt a blow to the solar industry
in the Baltic country. However, those who stayed in the solar business
scrambled to launch or ramp up solar equipment production to align it
with the heavily funded European Union’s scientific research.
Manufacturing Boom
“There are a couple solar research and
equipment manufacturing clusters, like JSC Precizika and Baltic Solar
Energy Ltd., that in fact have muscled up during the otherwise bad times
for national solar sector by attracting the EU funding,” said Vitas
Maciulis, president of the Lithuanian Solar Energy Association (LSEA).
The Precizika Group
produces cutting-edge solar technologies, a result of the EU-supported
investments in scientific research, development and modernization of
technological processes. Meanwhile, Baltic Solar Energy has
taken on manufacturing solar cells recently, and is already showing big
earnings, expecting a turnover of $270 million by 2015, with exports
accounting for more than 95 percent of the production. Precizika's total
yearly production capacity is currently at 60 MW, while Baltic Solar is
at 70 MW, according to Maciulis.
“Baltic Solar Energy’s efficiency of its photovoltaic modules is 17.3
percent, which is one the best indicators in the industry,” noted
Maciulis. Bringing in more competition, the BOD
Group Technology Center L.I.G.H.T WING opened in mid-October and
produces solar cells and modules. Meanwhile, another solar equipments
producer, JSC Via Sol Limited, is about to kick off its own production
line.
Uncertain Market
Some experts note that when the lavish
FITs had been in force, there had been a heated competition among solar
developers over the solar generation permits. But now the tables have
turned to manufacturing.
“Now we see a different kind of war.
It is more heated than ever over the European money aimed to spur
ecological and cutting-edge solar industrial plants. Only those
companies that timely invested in solar research and production and work
along with Western European partners to get the EU subsidies are doing
well today. Those who focused instead on solar generation have ceased
operations, or struggle now,” Edmundas Zilinskas, director of JSC Saules
Energija, a solar cell producer, told Renewable Energy World.
There are only 80 solar projects that
are over 30 MW in Lithuania. After the RES amendments in the beginning
of the year, there have been zero new solar plants, according to the
LSEA president. For the solar equipment manufacturers this translates in huge decrease in turnovers.
“In our company it has dropped nearly
four times. Perhaps we’ve made the same mistake as the majority of
Lithuanian solar developers — we were planning the business long-term
and have invested too much into solar generation. Redirecting the
business has taken some precious time,” the director admitted.
Before the FIT cuts, Lithuanian
manufacturers provided for 85 percent of the domestic market, but after
the constraints that percentage has dwindled drastically. “The bulk of our production is shipped
to Western Europe, largely Germany, Switzerland and Austria. We are
trying to avoid Russian, Italian and Spanish solar markets because of
risks,” Zilinskas confided. He added: “If not the exports, all in the
market in Lithuania would be wiped out.”
Net-metering Compromise?
Maciulis agrees, but says the Lithuanian authorities have started to determine that the solar cuts were too drastic. “Perhaps ackowledging [the
too-drastic cuts], to my surprise, the Parliament’s Environment
Committee has endorsed in the first reading the draft law on
net-metering system application in Lithuania. If the draft turns into
law, it will resuscitate the whole sector in the country,” the LSEA head
said convinced.
According to the LSEA
net-metering would add some 10-20 MW of capacity yearly, which now makes
up 70 MW in the country. Lithuanian lawmakers are expected to start
deliberations this year.
“Better times for the Lithuanian solar sector might be around the corner,” pondered the Association’s president.
http://www.renewableenergyworld.com/rea/news/article/2013/11/lithuanian-fit-cuts-dampen-development-but-net-metering-may-rekindle-industry
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