SOLAR THERMAL IN ANDALUSIA CONTENTS 1. Solar Thermal in Andalusia --------------------------Page 2 2. Laws and Regulations (PROSOL)------------------ Page 2 3. Compulsory installations ------------------------------ Page 4 4. Situation in the Market --------------------------------- Page 7 5. Selection of companies ------------------------------- Page 8 6. Competition ---------------------------------------------- Page 13 7. Strategy to attain the targets ------------------------ Page 14 8. References ---------------------------------------------- Page 14 1) SOLAR THERMAL IN ANDALUSIA The geographic location of Andalusia in the south of Spain signifies that it is in a key position to play an important strategic role in the implementation of renewable energy technology in Europe, as well as providing sufficient energy for its own needs and even exporting such projects to other countries. Moreover, Andalusia is, for cultural reasons, a bound between Europe and South American countries, as well as for geographical reasons, the link between Europe and Africa. It could not be definitely better located and in addition, it is the place which gets more radiation in the whole Europe. Andalusia is the region with more solar thermal capacity and the wish of investing in solar thermal is still growing (in particular, pymes are getting more and more interested in acquiring a solar thermal system), although the big investments are still being done by bigger enterprises. According to the “Agencia Andaluza de la energia”, from the 930.235 M2 that we have in all Spain, (oficial information provided by the institute of the energy in Spain) 347.182m2 out of them are Andalusian. What means that southern region is first in Spain representing the 40 per cent of all squares metres. Seville is the first province in Andalusia, with 185.141 of the Square metres. The second province is Cadiz (60.931 m2), but already having less than the half of the capacity that Sevilla has, with. Malaga goes after, in a third position, followed by Almeria (30.824m2), Huelva (25.895m2), Cordoba (17.961 m2), Granada (13.018) and the last, Jaen with 4.530 m2. 2) REGULATIONS Andalusia energy policies are generally implemented through regional development plans such as the Plan Energético de AndalucÃ−a (PLEAN) and the Programa Andaluz de Promoción de EnergÃ−as Renovables (PROSOL). The principle objective of the latter programme was to implement and increase high-temperature solar thermal 1

energy to 100 MW in 2006, and now raising it to 230 MW in 2010. Regarding low-temperature solar thermal energy installations, there are plans to increase the quantity of m2/1000 installed per inhabitant from the present figure to a total of 142. Thanks to this program, the user can easily acquire of the highest quality products for a cheaper price, by being sponsored by the government of Andalusia. As for being part of PROSOL It is a must to reach a high level of quality by presenting some characteristics, passing tests, obtaining certificates, and taking some other actions in order to proof that the products collect all the quality requirements, not all products can get the certificate. This regulation is not only increasing the sales within the solar thermal sector but also developing people's awareness concerning quality and importance of investing in a product with a “longer life”. According to PROSOL: • -For solar Thermal installations, it is possible to get up to a 40 % discount out of the total investment. • -In some cases, (PYMES for example), local administration or other public administration, the subvention can cover up to a 50 % of the total investment. • It is also possible to increase the given percentages when a project would have an innovator character or a great architecture. *IMPORTANT: This rule will be only applied to those installations which are not obligatory. We have more information about PROSOL in other file. However, there are National regulations as well supporting solar thermal. The National government has been implementing them since the 2000 so far and they will still continue following these premises until the 2010. The following are the relevant ones: 1 • Programa de Fomento de la Investigación Técnica (PROFIT), (For tecnical investigation)

2 • Ayudas de financiación y subvenciones del Instituto para la Diversificación y Ahorro de la EnergÃ−a (IDAE) (Subventions for the diversification and saving of energy)

3 • Ayudas a instalaciones de EnergÃ−a Solar Térmica. Convocatoria pública 2002 para la acreditación de empresas colaboradoras. (Subventions for intallers)

4 • Plan de Fomento de las EnergÃ−as Renovables 2000-2010. Ayudas a instalaciones de energÃ−a solar térmica para usuarios. (Subvention for privates/ users of Solar thermal energies)

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For additional information about National regulations and incentives visit this website: http://www.idae.es The table you can find below is very interesting in general as it details the situation in Spain not so long ago and the objectives in the solar thermal sector that they are supposed to achieve, comparing to other provinces as well. The first position is for Andalusia, which wants to triplicate the square meters of installed surface. Obviously, Andalusia, Catalunya and Canaries are the provinces with the most difficult objectives. SITUATION 2004

OBJECTIVES

(sq.m) 213.239 6.686 9.022 78.362 95.731 1.501 34.646 7.845 82.358 3.310 8.911 56.204 19.321 12.473 204 58.199 4.849 700.433 m2

(sq. m) 998.846 88.360 42.370 545.940 612.135 21.696 265.177 297.767 558.570 170.055 44.448 338.709 142.769 83.200 20.856 483.746 126.248 4.840.892 m2

PROVINCE ANDALUCà A ARAGà N ASTURIAS BALEARES CANARIAS CANTABRIA CASTILLA Y LEΣN CASTILLA-LA MANCHA CATALUNYA EXTREMADURA GALICIA MADRID MURCIA NAVARRA LA RIOJA COMUNIDAD VALENCIANA PAÎ S VASCO TOTAL Compulsory installations According to the CTE 5, those obligatory installations are not supported by government. Lack of supporting regulations and the quality requirements are not so strict. As they cannot apply for PROSOL subvention they tend to buy low quality products just to meet the minimum requirements of the law. The “Documento basico de ahorro de energia” establishishes the minimun solar contribution of SHW for the new buildings. This contribution has been obtained by the division of the annual valuation of the solar energy by the annual demand of energy. These needs of SHW have been calculated according to several factors, mainly, the type of building and the annual demand of SHW.

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This Minimum contribution also depends on the Zone. In Andalusia there are zones IV and V. Therefore, the minimum solar contribution in Andalusia is the highest in Spain together with Valencia and Canaries Islands. See the picture below to find the different climatic zones existing in Whole Spain as curious information: They consider 2 different cases for this minimum contribution depending on the type of supporting energetic source (Gas or electricity by applying Joule effect). Please read the information below. Joule effect In the table below you can see the annual minimum contribution for the case of indoor pools. In the document you can find other technical specifications, as minimum requirements that a solar-thermal system has to have as well as other concretions about all its components. There are also some remarks about maintenance. There are circumstances permitting to increase or decrease these minimums according to certain situations as the difficult location of a building (complicated because of it's inclination, orientation, superposition of other buildings, shadows, etc) which makes difficult the absorption of radiation, or the use of other forms of energy, for instance. 3) SITUATION OF THE MARKET Firstly I would have to give an overview about the strengths and the weaknesses that the market of the energy in Andalusia has: * Weaknesses: - Main motor of the energy: electricity - Renewable energies are still not so extended. - The price of the energy is increasing in general. - Habits of consume of the energy are not enough. - Stuff working in maintenance hasn't been properly formed. - Lack of statistical information * Strengths: - High potential regarding saving of energy. - Regulations regarding renewable energies are becoming very exigent. - Politics' will is active. In Andalusia, we have approximately a total amount of 500 businesses guarding any relation with the world of the solar energies. Most of those businesses involve the solar-thermal sector, as this has become the most efficient way to invest in renewable energies in Andalusia. We can say there are in Andalusia almost 400 Businesses dealing with solar-thermal.

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Half of those 400 are small companies as plumbers, air conditioner, etc. but the other half dedicate mainly to the production, distribution, installation or engineering of solar thermal systems Seville is the province which has more businesses dealing with solar thermal energies (170, approximately) and Jaen and Huelva are of the leasts (60 companies, approximately). There are a lot of companies growing right in this moment, which were created just a few years ago, around the 2000, to take advantage of the promising solar thermal sector. They are, in many cases, property of an individual so not always is possible to find someone in the company who you can communicate in English. But in general, actually in whole Spain even big companies are growing enormously. Just as an example, IBERDROLA RENOVABLES, one of the most important companies regarding energies, has grown so far this year up to an 80%! The current crisis in Spain has influenced remarkably the Andalusian market but as well it has developed an ecological awareness that I can state it didn't exist previously to that fact. People as well as public administration have arrived to the conclusion that investing in solar energies is one of the keys to solve the current situation, so It is easy to predict that the sales will increase very quickly (Although the results were very positive so far). I consider that since the last few years, the following companies of Installers and /or distributors in Andalusia are experiencing an on-going growing process within the region: SEVILLE *Emitsol: -Installers and distributors in Andalusia. http://www.emitsol.com/ Contact: [email protected] *Aldiro energias renovables: -Distributors http://www.aldiro.es/ Contact: (through the website) *Enertel-Instalaciones Francisco Aguilar : -Installations and distribution. http://www.enertel.es/ Contact: [email protected] *ABMAXsolar:

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-Engineering, Installers and distributors. http://www.abmaxsolar.com Contact: [email protected] *Proingenieria: -Installations, distribution, engineering. http://www.proingenieria.es Contact: [email protected] *Insolac: Installations and engineering. http://www.insolac.com/ Contact: [email protected] *Varilla Solar: -Promotion and distribution. http://www.varillasolar.es Contact: [email protected] *Alumbro: -Installers and distributors http://www.alumbro.com/ Contact: [email protected] MÔLAGA *Galber Solar -Distribution, installations. http://www.galbersolar.es/ Contact: [email protected] *Sun power Solar Spain -Distribution, importer.

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http://www.sunpower-solar-spain.com Contact: [email protected] *Novasol -Installations and distribution http://www.novasol.es Contact: [email protected] *Transformersolar: -Distribution and Installations. http://www.transformersolar.com Contact: [email protected] *Renova Soluciones energeticas: -Installation and Ingeeniers. http://www.renovasoluciones.com/ Contact: [email protected] (Lucia Varona) *Europea del clima SL: -Distribution, installations, engeeniers and promotion. http://www.europeadelclima.net/ Contact: administració[email protected] *Ecomarbella: -Distribution and installations www.ecomarbella.com Contact: Through website *Giersolar: -Distributor, installer. www.giersolar.com Contact: [email protected]

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CÔDIZ *Eolosol SL: Installations and distribution. http://www.eolosol.es Contact: [email protected] *Tensol: -Installations, distribution, engineering and promotion. http://www.tensol.es Contact: [email protected] (Juan José Caballero) *ConfortWorks: -Group of installers. Andalusian from Cádiz. They work in all Spain and Portugal. http://www.confortworks.com/ Contact: [email protected] *Solosol: -Installations, distribution, engineers and promotion. www.solosol.org Contact: [email protected] *Antesol -Engineers and installations. http://www.antesol.es Contact: HUELVA *GrupoReales: -Installation, distribution, engeeniers and promotion. http://www.gruporeales.es Contact: [email protected]

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CÃ RDOBA *Ceasur - Importadora, instaladora. http://www.ceasur.net Contact: (through website) *Eneco -Distributor and installer http://www.enecoenergia.com/ Contact: (through website) *Instalaciones y Aplicaciones energeticas (IASEN): -Installations, distribution, promotion, formation. www.iasen.es Contact: (through web site) *Grupo SCER: Installations, engineering and distribution. http://www.gruposcer.es Contact: [email protected] JAÃ N *Intelec IngenierÃ−a: Intallations, engeeniers. http://www.intelec-ingenieria.com/ Contact: [email protected] [email protected] *Innovasolar: -Installers, engeeniers, promotions www.innovasolar.com

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Contact : [email protected] *Andaluza de la climatización: -Distribution, installation, and promotion. http://www.andaluzadeclimatizacion.com Contact: (through website) *Ecoavantis -Instaladora. http://www.ecoavantis.com/index.php Contact : [email protected] GRANADA *Solartex: Solar thermal, distribution, installers and engineers. http://solartex.es/es Contact: [email protected] *Eti Solar: http://www.etisolar.com Contact: [email protected] *Techsolar Solar Energies: Installations and distribution. http://www.techsolar.es/acs.html Contact: [email protected] *Tecnica solar granadina: Installations and engineering. http://www.tecnicasolargranadina.com/es_main.php Contact: through the website ALMERIA

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*SHV Tecnologias energeticas SL: (Seems a good website but It is on construction I read It deals with solar thermal on the yellow pages) Check it. *Proyectos Indasolar: Although the website does not look very nice, they work with Schuco, conergy… http://www.indasolar.com Contact: [email protected] *Solartech energias renovables: http://www.solartechsl.com/ Contact 4) COMPETITION Last year, regarding solar thermal, 60 % of the goods were imported to Andalusia and most of them were brought from China. Cheap Chinese products seem a not risky option for Andalusian people as it seems the problem for them is the fear to make a big investment of money. The good new is that according to the new regulations and to profit the incentives that the government of Andalusia is offering, the products are required of certificates for ensuring the quality and a longer life of the product. Thanks to those incentives, and as the price would not be such a difference anymore, privates as well as distributors are worrying more about quality and they seek for branches such as ours. However, when they think about quality, German products are still the most popular in the Market (Sonnenkraft, Viessmann…) MEGASUN by HELIOKAMI is our main Greek competitor and It is very well known in Spain. About the Spanish companies representing the 40 % left, represented by a number of 35 in total, people who is starting in the business of solar thermal, they prefer to trust in Andalusian fabricants firstly, and specially if they manufacture within the region. They also trust in Foreigner manufactures with factory in Andalusia. Those are the following ones: - Termicol (Seville) - Promasol (Málaga) - Isofoton (Málaga) - Solaris (Almeria) - Chromagen - ACPsol (Málaga) - Disol - Europea de Promociones solares (Sevilla) (And some others especially manufacturing components) The “aprobacion del codigo tecnico de edificacion” has imposed as an obligation to install solar thermal in all new buildings to satisfy SHW's demand. Since the moment that it will be another kind of installation of the building, it has to meet some requirements of warranty, liability and long term efficiency. However, we don't have the right legal mechanisms regulating this and that is the reason why they are installing products of a low 11

quality, just meeting the minimum strictly. The products manufactured in Asia are the most popular. 5. Strategy to attain the targets I have been observing many articles, comments from politicians and people's comments on forums about the situation in Andalusia, prices of the energy, current crisis and the way that is affecting to the energy, etc. Collecting all the information I have read, I have arrived to the following conclusion: It is very important to change people's vision, through a good Marketing based in the importance of a good investment in quality in detriment of the cheaper costs. As Andalusia people want to be a more developed community in several aspects but walking upon a safe path, that Marketing should get across to people a message getting the following concept across: Investing in renewable energies is a sign of being a developed region which takes care of the environment, the planet and which uses energies in a very efficient way... and then somehow would be essential to remark the importance of quality, etc. We have to profit all incentives that government is giving participating in all the programs and certifying all the products so that they can be more reachable. The government has to still stimulating the use of solar energy, for instance by giving incentives and stimulating producers in efficient manufacturing. Installers must be instructed so they can deliver good installations and services. Making them feeling confident is the way to get the andalusian's people trust but at the same time It is necessary to put a little pressure on them so that they feel pushed, otherwise they will not do make a movement. This is especially for companies which are STARTING OR GROWING in this time. And this is the only way how they could get rid of their fear of investing: giving facilities or commodities while delivering like longer deadlines in regarding payment terms. 6) REFERENCES: -Plan PROSOL -Contribución solar mÃ−nima de agua caliente sanitaria (Documento Básico Ahorro de energÃ−a) - Plan de Fomento de las EnergÃ−as Renovables 2000-2010 -www.agenciaandaluzadelaenergia.es - www.diariodecordoba.es - www.portalenergia.es - www.paginasamarillas.com - www.cityguias.com - www.Idae.es 12

- NT Nuevas tecnologias (Spanish magazine) - Other websites, forums, opinions. 11

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