The Rooftop Revolution: An Alternative Path Towards Decarbonization

The Rooftop Revolution

An alternative path towards decarbonization

There are five major challenges associated to decarbonization

1	2	3		4	5
					Massive investments
	Extensive			required in upgrading				Decarbonizing with
Fast deployment	electrification of		electricitynetworks and		Increased	environmental
of renewable	all energy			in additional capacity		flexibilityneeds to	respectand
electricity to	consumption		build-up to compensate		operate a 100%	benefits for
replace fossil fuels	vectors			for system losses		renewable system	society

Decarbonization

Challenges

3

We need to transform the way weproduce and consume electricity

Unleashing the full potential of electrifying energy demand by scaling distributed Solar and Storage

From

To

Centralized oligopolistic system, polluting	Decentralized networkof decarbonized,
democratized and affordable clean energy by
and with very expensive T&D costs
dramaticallyreducing T&D costs

4

1. Distributed Generation is the fastest way to deploy renewable

resources at scale

Europe renewable capacity additions by technology, GW, 2011-28, IEA

1. Forecastrevisionsvs.2022,%

Distributed Generation Utility PV Wind onshore Wind offshore Hydrogen Other

200

55

250

80

x3

550

235

710

280

+46%

+5%

-7%

2011-16

2017-22

2023-28(Main case)

2023-28(Acc. Case)

Source: Renewable Energy Market Update. International Energy Agency, 2023

5

1. Opportunity to grow Distributed Generation in Spain is massive as the market remains vastly underpenetrated at only 4%

Evolution of annual residential solar installations in Spain, # thousands installations1

xx Penetration rate, %

<1%	<1%	<1%	3%	4%	15%	100%
						10.000
				2023 highlyimpacted
				by a high interest rate
				environment
					1.500
6	20	54	217	111
2019	20	21	22	23	2030E (cum.)2	Marketsize

1. Source: Informe anual de autoconsumo fotovoltaico 2022 y 2023, APPA - Asociación de empresas de energías renovables
2. Source: Internal estimation leveraging WoodMackenzie, S&P Global Commodity Insights and Spanish PNIEC sources	6

2. Electrificationof fossil fuel energy sources will triple electricity demand in 2050

IEA Net Zero forecast, Electricity demand growth

3x

Current electricity demand

Future demand electrification

Source: Net Zero by 2050 - A Roadmap for the Global Energy Sector

7

2. Distributed Generation enables a cost-effectiveelectrificationof

households' energy consumption vectors

20-year Spanish energy consumption for a typical household, 2024 prices, €

1. Customer savings,%

84,400

-30%-70%-100%

61,400

27,800

			0
Energy bill	With Distributed Solar PV With an EV car on top With a Heat Pump on top

Source: Holaluz internal analysis leveraging IDAE data

8

3. Distributed Generation will massively reduce theneeds for investments in transmission networks

Investments in T&D grid in Australia under "Business as Usual" and "The Roadmap", M€

Transmission Distribution

-18%

~40%of an installation cost is

directly reverted to the system as a direct reduction in T&D expenditure

Business as usual

The Roadmap

Source: Electricity Networks Transformation Roadmap. Energy Networks Australia, 2018

9

3. Distributed Generation reduces the need for new renewable additions as it avoids system losses by localizing production and consumption

Europe renewable capacity additions by technology, GW, 2011-28, IEA

Distributed Generation Centralized generation

			-~10%
	577	550	523

2023-28 IEA Main case	2023-28 IEA Main case	2023-28 IEA Main case
- lower DG penetration		- higher DG penetration

Source: Holaluz internal analysis leveraging IEA forecasts

10