Sharp 2009 Annual Report Download - page 17

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Until now, most of the world’s solar power has come from
crystalline solar cells. Sharp will also develop its produc-
tion framework to accommodate thin-film solar cells, for
which future demand is expected. At Sharp’s Katsuragi
Plant, we boosted annual solar cell production capacity
from 15MW to 160MW in October 2008. In addition, we
plan to begin operations at our new solar cell plant cur-
rently under construction in Sakai City, Osaka Prefecture
by March 2010. The new plant in Sakai will become a
mother plant for building solar cell plants in other coun-
tries as we advance our drive to establish a global produc-
tion framework. Sharp aims to establish a presence across
the entire solar power value chain as a total solutions
provider, active in production of solar cell materials, cells
and modules, as well as in system integration (SI) and the
independent power producer (IPP) business.*
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In the past, we have constructed factories in Japan on our
own. Now, we plan to use alliances with local companies
to establish overseas production bases located in the area
where the products will be used. We aim to put in place a
complete value chain in the consumption area, encom-
passing each step from procuring materials through manu-
facturing and sales, a concept that we call local production
for local consumption. This business model enables us to
receive a return for our proprietary technologies and know-
how as technology assistance fees in the form of initial
payments and royalties, and as dividends and other revenues
from joint ventures. This serves to minimize risks involved in
foreign exchange rates and the recovery of capital expendi-
tures. One example is the alliance with Enel SpA, an Italian
power company. Looking ahead, we plan to build a thin-film
solar cell plant in Europe and participate in IPP business
using photovoltaic power generation in this region.
Becoming a Total Solutions Provider in Photovoltaic Power Generation
When comparing solar cells to oil as an energy source, solar cell plants take the place of oil fields.
However, there is one critical difference: while oil fields will eventually be depleted, the world will
never run out of energy from the sun.
* Independent Power Producer (IPP) business: A business that builds and operates its own power generation facilities, and sells the electric power it gener-
ates to power companies.
Becoming a Total Solutions Provider
Production of
materials
Power
generation
businesses
Solar cell/
module
production
System
integration
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