MARK HANKINS GET invest Finance Catalyst advisor Solar

MARK HANKINS GET. invest Finance Catalyst advisor Solar and Storage in SIDS Business Models, Drivers and Challenges

GET. invest in a Nutshell A European programme to support investments in decentralised renewable energy, supported by the European Union, Germany, Sweden, the Netherlands, and Austria, implemented by GIZ. Advisory support via the “Finance Catalyst” Open facility linking projects/companies with finance 25+ experienced advisors, ~100 active clients Private sector mobilisation Linking partners via offline & virtual events Market information, studies Supporting associations Capacity development and other complementary work Incl. trainings, advisory/support to regulators, etc. Investment strategy support Finance Catalyst Support Business/project structuring, incl. financial modelling Identification and linkage with financing instruments Transaction advisory and negotiation support

CCREEE’s Project Preparation Facility In the CARICOM region, GET. invest works in close partnership with CCREEE Together with PFAN and TAPSEC-GIZ, GET. invest supported the CCREEE in the design and establishment of the private sector stream of its Project Preparation Facility (CCREEE PPF), launched in Nov 2020 10/01/2022 Business Models, Drivers and Challenges 3

Business Case I: Off-Grid Energy Storage Stand. Alone Systems Off-grid market developments have been dominated by public sector grant finance programs for institutions and rural electrification. Private sector opportunities are emerging and becoming viable quickly as technology improves, costs decrease and finance models open up. ©G Developing market will include private sector (mining, tourism) IZ Mini. Grids Electric Transport ©G Business Models, Drivers and Challenges ufe i Te ©G Small island communities beginning already to shift from diesel to solar/battery for financial and environmental reasons. 10/01/2022 Traditional established market um IZ S l Key future market IZ 4

Business Case II: Markets for Grid-Connected Storage C&I Power Stabilization ©G Grid-connected solar storage market is just beginning to develop. Support for short-term black-outs IZ C & I Short Term Storage Evolving opportunities in a competitive C&I environment. Public sector utility markets for battery storage likely to develop in more distant future. Weak grid support Small Business & Residential Upper middle class & business needs Transport ©G 10/01/2022 Business Models, Drivers and Challenges IZ 5

Regulatory Issues No horizon for net metering or wheeling in most markets Private sector will have to work with Government to develop regulation and exemptions Some tax-exempt environments BUT Battery storage is still a difficult sell for duty exemption and tax breaks 10/01/2022 Business Models, Drivers and Challenges 6

Drivers for Market Development Falling Prices Drivers Price reductions ($137/k. Wh in 2020)1 Developing consumer market niches Battery technology (lead acid, Li. OH, capacitors…) Solar PV market development Better Regulatory Infrastructure New Markets Increased Demand 1 10/01/2022 Business Models, Drivers and Challenges Bloomberg. NEF (2020) 7

Challenges for Market Development Challenges Technical capacity Market awareness & confidence Financing (business) Financing (consumer) Government regulations & grid acceptance 10/01/2022 Experience with solar PV markets (C&I, PPA, mini-grids, stand-alone) provide an excellent road map for the development of storage markets in individual countries Business Models, Drivers and Challenges 8

How to apply for support in the region: Applications for support can be submitted at: https: //www. ccreee. org/ppf/ Information is treated confidentially; Applications are evaluated by CCREEE, PFAN and GET. invest experts in rounds. 10/01/2022 Business Models, Drivers and Challenges 9

Thank You for Your Attention! MARK HANKINS GET. invest Finance Catalyst advisor E-mail: mark@finance-catalyst. eu www. get-invest. eu @GET_invest @GET. invest