IREX AT INTERSOLAR 2018: FROM “TIER 0” TO “TIER 1”
On June 20th, 2018, IREX energy joint stock company – a member of SolarBK Holdings is attending Intersolar 2018: an international renewable energy exhibition. This is IREX’s fourth time presenting to the world the “Made in Vietnam” renewable energy as a “Tier 0” manufacturer. Also in this year, SolarBK has Solar Experience Space project entering the finalist of Intersolar 2018 Outstanding Project Award category.
Intersolar international exhibition is one of the leading events annually hold to promote renewable energy with the presence of many prestigious companies in the world. Intersolar 2018 had more than 900 world renewable energy suppliers, with over 1200 participants from 150 countries around the world.
The exhibition will take place at the Messe München Exhibition Center in Munich, Germany. Prior to that, IREX used to participate in the largest SPI exhibition in 2017 (Solar Power International), along with Intersolar in 3 years: 2014, 2015 and 2016. IREX is the first Vietnam renewable energy enterprise reaching global market.
In this exhibition, IREX continues to bring solar cells and PV panels “Made in Vietnam” with the spirit of “Tier 0”. Intersolar 2018 is also an important milestone of IREX on the journey to the Tier 1 target in 2020.
Intersolar – Game for the Tier 1
Tier, a well-known ranking scale for trustworthy solar panel manufacturers, is issued and rated by Bloomberg New Energy Finance (BNEF) with 3 levels: Tier 1,2,3. Tier 1 module manufacturers are those which have provided own-brand, own-manufacture
products to six different projects, which have been financed non-recourse by six different (nondevelopment) banks, in the past two years. These 1.5 MW+ deals must be tracked by our database, ie the project location (sufficiently to
identify the project uniquely), capacity, developer, bank and module maker must be in the public domain.
Based upon this criterion, only 2% of renewable energy firms achieved Tier 1, yet those have such enormous impact on almost the entire market. Counting to third quarter 2017, only 33 firms are rated Tier 1 by BNEF. The capacity of these firms can reach as highest as 6970 MW, Canadian Solar, or as lowest as 210 MW by Sharp. China not only has the most Tier 1 firms but it also holds the biggest portion of capacity.
Unlike many firms in the world, IREX attends Intersolar 2018 in a light of “Tier 0” (Tier Zero) – our own principle. Since now, that principle has greatly contributed to helping IREX increase our sales from the reputable parter.
“Tier 0” by IREX background
Many customers misunderstand Tier 1 as a product quality warranty while it only rates commercial aspect. In fact, quality is measured by some international certifications such as TUV, UL applied to a separate field, which BNEF itself clearly indicates in reports relating to this issue.
According to firms that achieved Tier 1, many of those have comparatively low capacity but has been guaranteed by banks due to their conglomerate advantage, and PV panels a part of them. Finance organizations appraised them in details which facilitates a re-appraise process.
Additionally, countries considerably support their firms in reaching Tier 1. For instance, China takes solar energy as a potential strategy for our national development. Consequently, banks simplify their credit policy for these firms. In brief, this is not a completely fair competition, saying in international aspect.
Last but not least, firms achieved Tier 1 under banks’ guarantee always get a higher price for the same quality product. Nonetheless, these firms are usually under pressure owing to a massive amount of orders so as to utilize their machines and prefer customers that have high demand.
Undeniably, Tier 1 are reputable businesses which providing quality products. But on the whole, when every business is competing with quality and service only, IREX is confident enough to enter the game in the spirit of “Tier 0”.
The principle of “Tier 0” is based on trust between people have the same mission and development goals. Accordingly, IREX has committed to meet the quality of products and services required by partners at a competitive price than Tier 1 enterprises. In return, they have shared their trust with IREX in the renewable energy community, expanded circle of cooperation as bigger and stronger as possible. IREX has taken this principle seriously through times of Intersolar and gained credibility from international parters.
“ Tier 0” journey at Intersolar:
At Intersolar 2014, IREX, an energy company from Vietnam, seems to be dim among those companies from the US, EU and especially from China. Most parters asked for Tier 1 certification instead of looking into details of IREX’s achievements. “Ever since worldwide parters only view Vietnamese enterprises as renewable energy importers rather than exporters. Vietnam seemingly has nothing on country position and working history aspects making our parters skeptical about our cooperation. Furthermore, IREX is excluded from Tier 1 group. At that time, Vietnam background does not exist any local finance organization that is capable to guarantee such a brand new profession. Nevertheless, IREX refuses to give up and decides to take a step out of our comfort zone as well as into the international market. After considering in details, we realize that a change should be put into action. As a result, we started our own game with “Tier 0”.” – said IREX representative.
In order to convince customers by “Tier 0” principle, IREX has spent a long time working with those Tier 1 parters to gain experience from their operating process to quality checking. From that, we are confident to warrant our producing ability depending on our parters’ demands accompanied by reasonable price range regardless banks’ guarantee fees. Throughout Intersolar seasons, IREX has step by step persuaded more customers, and “Tier 0” has become a tacit standard between IREX and our parters creating such practical link and efficiency.
“Tier 0” at Intersolar 2018: lever to Tier 1:
The idea of “Tier 0” comes from a philosophy: It is very simple to go from 1 to N when everything has been systematized for replication, but to go from 0 to 1 needs both effort and determination, mind, wrong acceptance and correction.
In reference to that theory, “Tier 0” is not only built to acquire Tier 1 by BNEF but also a friendly reminder for IREX to always keep our start-up spirit in mind without limiting ourselves in any border. For that reason, IREX is always aware of in-depth research, learns from parters, continuously updates process, upgrades system and invests in core values and basis supporting lean manufacturing, optimal to create new ideas for this field in particular and for our society in general.
After years working, Intersolar 2018 is a just right opportunity for IREX to attain Tier 1 in an effort to earn more exporting orders. On the one hand, in 2017, Vietnam has enforced many persuasive policy in solar energy field facilitating many finance organization to invest in this market. With a new background, IREX has received many order packed with bankability. On the other hand, IREX is operating high-tech renewable energy manufactory with total capacity reaches 500 MW, along with 100% advanced production line in second quarter of this year. Especially, IREX has such a good position therein international market as a “Tier 0” expert in exporting PV Module.
Tier 1 is IREX’s next target to have both hands on the worldwide play. However, this is not IREX’s final purpose but our proof that their skills and Vietnam technology are equivalent to international quality. Tier 1, in brief, is only a standard placed by one organization, which can be appropriate for right now, but nothing can assure its effect in the future given that technology is constantly thriving. Thus, IREX started the “Tier 0” logic to mould our thoughts and vision in a big game where firms can place their own standards with a global recognition.
Inheriting research result along with financial, technological, human resource supports from SolarBK, IREX energy joint stock company is officially founded in 2012 with a purpose to be the world’s top renewable energy manufacturer.
From the beginning, IREX focused on building up manufacturing process and training employees based on international standard. Products by IREX accomplished international certifications, satisfied domestic as well as global market and be explored to America, Tunisia, Turkey, and European countries.
In anticipation of second quarter of 2018, “High-tech renewable energy manufacturing complex” together with 100% automatic chain will be operated. Project includes 2 categories: Renewable energy factory and renewable energy R&D center. Up until August 2017, IREX had attended SPI, the biggest renewable energy exhibition in North America (Solar Power International) as the only Vietnam renewable energy company reached global market. IREX also attended Intersolar in 2014, 2015 and 2016.
ABOUT SolarBK HOLDINGS
SolarBK, founded in 2006 with a support from over 40 research years of professors, researchers from University of Technology, Ho Chi Minh City, has become the leading R&D company offering products and solutions for renewable energy in Vietnam (solar energy and wind energy). Products supplied by SolarBK complete international standard and certifications, meet domestic as well as global demand, is exported to America, Tunisia, Turkey and many European countries.
With perpetual effort and development, SolarBK has generated many subsidiaries in charge of each specific field of renewable energy study. Meanwhile, IREX joint stock company is a renewable energy manufacturer. Solar ESCO joint stock company offers business complete renewable energy solution. SolarGATES company distributes renewable energy equipments, apps, full solutions to household consumers.
SolarBK Holdings has demonstrated its potential through many national projects such as lighting system on Trường Sa islands (won Global Energy 2012), seawater filter run by renewable energy on Song Tử Tây island (won Global Energy 2016), etc.
In 2017, SolarBK provided domestic market solar energy solutions up to 3 MWp, held 30% domestic market share. September 2017, IREX, a member of SolarBK, attended SPI (Solar Power International) – the biggest renewable energy exhibition in North America and became the first and only Vietnamese enterprise conquered the intercontinental market. In October 2017, Da Nang Residents’ Committee officially approved SolarBK to build Solar Energy Farm (Solar Farm) with a capacity of 4.4 MWp in Da Nang.