Prepared by:Steve Bornstein

Alexandra Kravetz

Feasibility Study Summary

Green Cross International and Global Green USA

Global Solar Fundand Initiative

Expert interviews and research confirm a compelling need for a Global Solar Fund and Initiative to meet basic human

needs and improve the health of our environment.

Green Cross International and Global Green are calling for the establishment of a $50 billion 10-year effort to support

the development of solar photovoltaics globally.

Why Solar Energy? A safe solution with the capacity to meet all our needs

Nathan S. Lewis“Chemical Challenges in Renewable Energy”

Division of Chemistry and Chemical EngineeringCalifornia Institute of Technology

• We will need twice as much power by 2050 as we use today to meet increasing global energy needs.

• All of the additional power will need to be carbon-free to stabilize CO2 at 550ppm by 2050 -threshold below which we may avert irreversible ecological damage.

• Solar energy is the only renewable resource with enough terrestrial energy potential to satisfy this constraint by 2050.

Expand energy production without producing greenhouse gases

15% of energy use is for purifying and delivering water

Stimulate jobs and opportunity for economic growth and prosperity

Stem Climate Change

Improve Public Health

Reduce Poverty

Create Peace and Security

Accelerate Cost Efficiencies

Help Provide Safe Drinking Water

The Benefits of a Solar Fund

Global Solar FundDeveloping Countries

Investments in Small and Medium Entrepreneurial Projects (SMEs)

A Two-Track Approach

Global Solar InitiativeOECD CountriesPolicy and Education

Global Solar InitiativeOECD CountriesPolicy and Education

Why a Policy Emphasis for OECD

Countries?

• Germany and Japan are examples of countries with aggressive solar policies.

• They are currently #1 and 2 in the world in terms of solar installations, and account for over 65% of global installations.

• Both have proven that when the political will is there, OECD countries have the financial and institutional wherewithal to dramatically effect change.

USA Japan Germany

Sources: International Energy Agency PVPS, The Pembina Institute, EurObserv'ER,

Photon International

OECD Needs-Initiatives-

Educate

Transform Policies

•Create greater understanding of the real costs of fossil fuels and the cost advantages of solar PV

•Guarantee access to the Grid for all levels of solar generation•Guarantee “net-metering” rates for energy provided to the grid by solar panels•Eliminate caps or limits for solar energy provided to the grid•Redirect subsidies on the basis of real benefits and real costs of power generation taking into account health and climate impacts•Unify Standards to support innovation and increased manufacturing capacity

Global Solar InitiativeOECD CountriesPolicy and Education

Next steps for theInitiative

Build political will through education and lobbying

The Global Green Solar Report Card A country-by-country progress comparison of solar policies

Secure funding to:- design and implement strategies for policy changes- explore barriers in education and advocacy- optimize awareness and action tools

Global Solar InitiativeOECD CountriesPolicy and Education

Prizes to encourage innovation and awareness

Global Solar FundDeveloping Countries

Investments in Small and Medium Entrepreneurial Projects (SMEs)

Global Solar InitiativeOECD CountriesPolicy and Education

A Two-Track Approach

Why a Funding Emphasis on

Developing Countries?

Christian Science MonitorGlobal Carbon Emissions in Overdrive

May 22, 2007

Interest is growing in developing countries for clean energy development.

Governments do not have the resources to single-handedly enforce PV acceleration

Lacking Government Resources

Impending EmissionsGrowth

Developing countries represented 73% of Global Emissions growth in 2004

Global Solar FundDeveloping Countries

Investments in Small and Medium Entrepreneurial Projects (SMEs)

Solar in Developing CountriesA safe solution with the capacity to meet our needs

-David Bornstein, "Fabio Rosa: Making the Sun Shine for All."Changemakers Journal, May 2003

• Distributed power is cheaper than centralized, grid-connected power

• Solar can leverage investments in other clean technologies

• Solar energy is cleaner and safer than alternate sources purchased by rural inhabitants (i.e., kerosene and wood)

• Willingness to pay:“Two billion people in the world lack access to electricity. Based on current energy expenditures by this sector, it is estimated that one billion can afford solar energy today at commercial rates, as long as they are able to rent the service or pay it off over several years.”

StrategyGlobal Solar Fund

Developing CountriesInvestments in Small and Medium Entrepreneurial Projects (SMEs)

Focus on Small and Medium Local Entrepreneurs(as opposed to end-users for ex.)

– Promote a market-based approach– Fund proven business models and utilize expertise– Develop replicable models – Draw on local outreach potential– Access to investment capital– Simple connection to carbon credits

Enabling BusinessEnvironments

Consumer & EnterpriseFinance

• Government commitments to eliminate institutional barriers and align policies with funding efforts

• Enabling pioneering small and medium enterprises (SMEs) to extend scale of operations

Innovation Funding

Needs of Developing Countries

Global Solar FundDeveloping Countries

Investments in Small and Medium Entrepreneurial Projects (SMEs)

• Low interest rate loans for enterprises and microfinance options for consumers

Convene an expert working group: Include funding agencies, energy service providers, fund managers, NGO and academic experts

Conduct investor interviews and analysis with fund investment partners to define investment needs

Launch US$150-300M Solar Fund Private Offering (~5% return) similar to Global Green’s Green Building Fund. Public-private partnership to provide investment finance for solar PV delivery by SMEs.

Next steps for the Fund

Global Solar FundDeveloping Countries

Investments in Small and Medium Entrepreneurial Projects (SMEs)

• PV Powered water pumps:– World Water & Solar Technologies Corp.

Global Solar FundDeveloping Countries

Investments in Small and Medium Entrepreneurial Projects (SMEs)

Examples of Innovative Business

Models

• Solar PV Delivery Companies:– SELCO India– Soluz

SELCO IndiaProfitably served 75,000+ homes and businesses since 1995

“Doorstep” financing and installation: consumer loan programs in partnership with local financial institutions

Click here to see a short video on SELCO

SOLUZ• 10,000+ households and businesses served

• Consumer financing options: - Cash and credit - Fee-for-Service or Micro-rental ($5-20/month)

Combining Solar and Water Delivery World Water & Solar Technologies Corp. in the Philippines

Pre-paid municipal solar-powered pumps

International Financial InstitutionsWorld Bank, GEF, IFC...

Non-Profit FoundationsSolar Development Foundation, Solar Electric Light Fund provided seed capital investments, business development services

Rural Energy Delivery Companies Small and medium enterprises provide energy services, sale and maintenance of PV systems

Investment Fund Consulting CompaniesGlobal Transition Consulting and E+Co. provide business development services at all stages, bringing substantial experience in energy delivery

National and Municipal Governments

Past Funding Efforts

-Partnerships

Global Solar FundDeveloping Countries

Investments in Small and Medium Entrepreneurial Projects (SMEs)

Partner with PV providerson the ground

Partner with banks and microfinance institutions

Possible Configurations

Global Solar FundDeveloping Countries

Investments in Small and Medium Entrepreneurial Projects (SMEs)

Establish a solar manufacturing support fund

Global Solar PV Industry Trends:Capacity

• Fastest growing technology: ~42% annual average 2002-2006

• Projected growth: from US$15.6 B in 2006 to US$77 B by 2015 (Clean Edge 2007)

• Supply projected to match demand by mid-2008

• Provide 15GW of annual production in 2010, against 2.7GW in 2006 (Photon Consulting 2007)

ActualProjections

Global PV Market, 2000 to 2025(in billion $)

Sources: European Photovoltaic Industry Association (EPIA)Greenpeace, Solar Energy Industries Association (SEIA), Clean Edge

Solar PV Industry Trends: Costs

Market growth will bring

Consistent deceleration of Solar PV costsCompetitivenessEconomic Viability

0

1.25

2.50

3.75

5.00

2006 2007 2008 2009 2010

3.783.56

2.84

2.342.04

Average Module Price Forecast ($/W)

Source: Travis Bradford and Paul Maycock (2007)

Solar to become the most cost effective energy solution

• Co-financing Partners could leverage 5-8x investment

• Project replication could leverage 3-4x investment• Carbon Offset Opportunities can contribute up to

30% of total project investment capital required (Carbon Market: US$30 B in 2006 from $10 B in 2005)

Leveraging Investments for a $50B Global Solar Fund over 10 years

$150-300 million annually for 10 years could support$50 billion in investment

Matt PetersenPresident, Global Green USAChair, Green Cross International Energy and Resource Efficiency Program(310) 581-2700 x105mpetersen@globalgreen.org

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