The aim for this SME instrument phase 1 has been to improve our understanding of the potential market for DG Island Mode. We have done this by undertaking the following activities:
1. Engaging with future users and stakeholders along the value chain
2. Securing a demonstration site for the first DGIM installation in the Faroe Islands
3. Quantifying the total available market and identifying the first “beachhead” markets
4. Analysing how the technology must be adapted to meet the needs of DGIM
5. Specifying the deployment setup and plotting the technology roadmap
6. Revising our financial projections
Specifically, we held detailed conversations with several stakeholders, representing future opportunities in the Faroe Islands, France, Chile, Taiwan, Italy, Florida, Canada, Ireland, Wales and Singapore. These conversations led us to identify an opportunity with the Faroe Islands, from which we have signed a collaboration agreement and identified a demonstrator site.
These conversations have also allowed us to identify the different use cases and requirements of different utilities and the communities they serve. They have also allowed us to understand the different regulatory and institutional environments that exist in these markets. In almost all cases, DGIM has been seen as a commercial opportunity in itself, and as a necessary prerequisite for future roll out of the larger DG utility mode.
Based on this understanding, and recruiting the support and data of a third party, we have performed resource assessments to estimate the total potential market size, as well as identify the most attractive “beachhead” markets where we plan to concentrate our initial commercialisation efforts. The third party estimates the total global available resource for DGIM to be equivalent to over 290,000 GWh annually.
We have then carried out internal analysis of the existing technology and identified the specific changes that must be made to develop a market ready DGIM, suitable for the specific needs of off-grid island communities. From this we have been able to define the deployment setup and plot the development and commercialisation roadmap.
Finally, based on the fact that our investigations demonstrated the potential for creating a successful product and business, we developed a four-year business plan, with associated revenue model and financial projections.
