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How has your journey been with Sungrow?
Before Year 2017, Sungrow’s Power Plant Business division focus on domestic market and win 5GW market share which lays a solid foundation for us to start international business. We pick Vietnam as our first foreign market as at that time we see the favorable FiT policy and government’s determination, then we win 90MW(AC) project in the first round. Based on the experience in Vietnam, we enter into more potential markets in APAC region such as Bangladesh, Australia, South Korea, and Indonesia. Our projects in Australia, Victoria just finished COD and we also have ESS reference in South Korea this year, so we really hope we can make some contribution and difference to Bangladesh RE industry as well.
What are the key changes you see happening in your product portfolio?
Being the world’s most bankable inverter brand, Sungrow places a strong emphasis on Innovation, with a research and development (R&D) team which accounts for more than 35% of the company’s workforce. Sungrow is one of the few global inverter suppliers with a full inverter portfolio that can serve residential, commercial and utility-scale installations including energy storage applications with maintaining 15%+ global market share. Some of our latest product portfolio introduced in various international exhibitions like SG250HX – world’s most powerful 1500VDC string inverter compatible with bifacial modules, SG3150U-MV – Another flagship 1500 VDC solution optimized for large-scale utility plants and a high DC/AC ratio of 1.5, SG33CX-US, SG55CX-US – The latest string inverters, focusing on commercial & industrial segments to North American market, enables flexible vertical and horizontal installation With built-in PID recovery function, ST556kWh-250UD – With joint venture of Sungrow and Samsung SDI, this all-in-one solution is tailored to C&I projects with compact design, small footprint and optimized thermal performance. For Inverter business in Bangladesh market, we have dedicate manpower from HQ Inverter division & we have also finalized a local distributor who can provide ready stock support & service to local roof top customers.
What is Sungrow’s growth strategy in Asia Market in order to expand the EPC business?
For EPC business, the key parts are project quality and cost. To some extent, the EPC cost is transparent nowadays as the equipment price is clear and the subcontractor cost is within certain range. Project quality is always our priority and we’ll make Sungrow EPC more competitive by optimizing design, supply chain and localization.
Kindly brief us about the presence of Sungrow in Bangladesh.
Sungrow started operation in Bangladesh market back to June 2019 as EPC, Project Developer & Inverter Manufacturer. After working in Bangladesh Renewable Energy Industry for 10 Years, It was really a great opportunity for me to join Sungrow as Country Head of Bangladesh Region to look after EPC & IPP business. From last six months, we tried to introduce Sungrow’s activities to all Bangladesh customers including Government, Semi Government & Private Sector. With help from GIZ, a team from Bangladesh Govt’s power ministry (SREDA, BPDB) visited our Headquarter & Inverter factory in Hefei & also the world’s largest 150MW floating solar project constructed by Sungrow. Participating in Bangladesh Solar Week-2019 as main sponsor was one of the key platform for us to highlight Sungrow’s footprint in Bangladesh market. We are also going to set up our local office by next one month & there will be combination of minimum 15 number foreign & local staff to expand business in Bangladesh market.
What type of Renewable Energy projects Sungrow is looking to build in Bangladesh market?
Currently we are mainly focusing on utility scale projects including land base & floating base where we can work as EPC & IPP. For the EPC business in Bangladesh market, Sungrow’s biggest advantage is to use own manufacturing product, It means we will work as EPC+ Manufacturer which will add more value to project sponsor for getting special inverter warranty support & after sales service. From next year 2020, we will also work as project developer/IPP to play a vital role to meet Bangladesh Government’s Renewable Energy Generation target. When we will be on Project Developer/ IPP role, our key focus will be to meet the COD timeline as per PPA & IA. As Sungrow is the global leader in floating solar segment, so we truly believe that Bangladesh people will see lots of floating projects to be built by Sungrow in upcoming days. For roof top segment, currently we are focusing mainly on Inverter business because we saw there are lots of local EPC players already fighting hard to keep minimum profit margin. We have plan to identify some large space roof top of Govt. Organizations where minimum 5MW solar power can be produced.
What are the emerging investment opportunities in Bangladesh Renewable Energy Industry?
Bangladesh achieved an impressive annual gross domestic product (GDP) growth rate of 7.86% in 2018 which is the highest in South Asia. What we have seen regarding development of Bangladesh Renewable Energy industry is that it is really a potential market for next five years & there are lots of opportunities for foreign players in different segment like roof top, utility scale, floating & others. One of the major advantage is that Bangladesh current Government is very much focused for renewable energy development & giving lots benefits & incentives for foreign investors like exemption of Corporate Income Tax (Period: 15yrs, Exemption of Custom Duties, VAT & other Surcharges, Tax exemption on capital gains from transfer of shares by the investing company, Repatriation of Equity along with Dividends, Avoidance of Double Taxation through Bi-lateral Agreements. For developing large scale solar power plants, we think making Joint Venture with Govt. Utility companies / Public Private Partnership (PPP) can be most suitable option because it will more easily for a Govt. Organization to secure huge amount of land by maintaining local laws & regulation. In summary we can say that Sungrow has really vast plan for Bangladesh market & we want to be the leader in each EPC, IPP & Inverter business segment in upcoming days.