BOSCH'S SOLAR ENERGY ACTIVITIES IN MALAYSIA CLOSELY WATCHED

By Manik Mehta
FRANKFURT (Bernama) - Germany's growing solar energy industry is
closely watching the move by leading German technology group, Bosch, within
Germany and also in Malaysia.

Frankfurt-based industry sources say Bosch has also entered the
photovoltaic inverter business segment and was aggressively pushing its
production in a big way.

Malaysia, which has done pioneering work in the photovoltaic business, is
seen as a launching pad for Bosch which already maintains a strong presence in
Malaysia.

Bosch spokesperson Andreas Kempf recently told journalists that Bosch had
established a subsidiary in January called Bosch Powertec specialising in
inverters.

It has been active in the photovoltaic market since 2008. It has also
acquired, completely or partially, Ersol Solar Energy, Aleo Solar and Johanna
Solar.

Two months ago, Bosch opened its new photovoltaic centre in the German city
of Arnstadt.

Bosch, which has manufacturing operations in France and Malaysia, will
"close the last gap in the value chain" with the production of inverters,
according to Kempf.

Germany's solar energy industry is also closely watching developments taking
place in Malaysia's solar-technology industry.

"The tropical climate of Malaysia, blessed with a daily average of seven
hours of sunshine, is ideal for producing solar-based electricity," says an
official of the Hamburg-based German-Asia Pacific Business Council which
promotes trade and business with the Asia Pacific region.

The German energy sector is eyeing the recent legislation that aims to push
renewable energy industry and was closely watching the move by EQ Solar
Technology International Sdn Bhd, a subsidiary of China's Hangzhou Energy
Solar Co Ltd, which planned to manufacture solar modules, cells and wafers at
the Senai Hi-Tech Park in Johor.

"It is an interesting move, but we have to see where this will further lead
to," Martin Peschachek, a German analyst for energy and commodities, told
Bernama on the Malaysian situation, implicitly suggesting that EQ might be
planning further projects as well.

EQ is said to be planning to invest some RM1.6 billion for the Senai
project. (US$1=RM3.17)

The keen German interest in Malaysia's solar-technology sector was also
reflected in the turnout of specialised trade visitors at an event called
"Malaysia: Potential for Photovoltaic and Solar Therm" in June.

German experts are also impressed by Malaysia's enormous potential for
renewable energy generation.

"Its location near the equator is conducive for solar energy production, and
its extensive tropical forests can supply large quantities of biomass.

"Hydropower already provides a significant part of the nation's energy
mix, particularly on the island of Borneo, and mini-hydropower obtained from
streams and rivers has increased the electricity supply in rural areas," said
one German entrepreneur who is now engaged in a "sensitive phase" of discussions
with a Malaysian company.

Another area of interest is energy derived from palm-oil waste.

Malaysia produces, on an average, some 18 million tonnes of palm oil
annually, much of which, is exported and biogas is derived from methane capture
of palm-oil mill effluent which could generate up to 20 per cent of the
country's electricity by 2020.