[Federal Register Volume 77, Number 131 (Monday, July 9, 2012)]
[Notices]
[Pages 40329-40332]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16595]
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DEPARTMENT OF COMMERCE
International Trade Administration
U.S. Renewable Energy Trade Mission Philippines and Thailand,
Manila, Philippines and Bangkok, Thailand, September 17-20, 2012
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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Mission Description
The United States Department of Commerce International Trade
Administration's (ITA) U.S. and Foreign Commercial Service (US&FCS), in
conjunction with USFCS staff in Manila and USFCS staff in Bangkok is
organizing a Renewable Energy Trade Mission to Manila, Philippines and
Bangkok, Thailand, September 17-20, 2012.
The Renewable Energy Trade Mission will offer U.S. companies a
timely and cost-effective way to engage with key stakeholders,
government officials and potential partners in an effort to enter the
promising Philippines and Thailand markets. Target sectors for
potential U.S. exports include:
Biomass/Waste-to-Energy/Biogas.
Geothermal.
Hydropower.
Wind power.
Solar power.
Both Thailand and the Philippines rank high on ITA's Renewable
Energy Best Prospects Study which identifies those markets with good
potential for U.S. exports of renewable energy goods and services. By
targeting these markets, the Renewable Energy Trade Mission will not
only advance the President's National Export Initiative and his goal of
positioning the U.S. as the leading exporter of renewable energy
technology, it will also support the ITA Energy Team, and the Renewable
Energy and Energy Efficiency Export Initiative's (RE4I) goals by
promoting export opportunities for U.S. companies active in the
renewable sector. With a focus on connecting U.S. companies with key
players and decision makers in the Philippines and Thailand, this
mission will provide critical market information and access to help
participants establish the necessary public and private sector contacts
to thrive. The five-day mission will include meetings with high-level
national government officials, one-on-one meetings with potential
partners and industry leaders, briefings on the Philippine and Thailand
markets, site visits, and additional meetings with members of the Asia
Development Bank.
The delegation will be comprised of at least 10 U.S. firms and a
maximum of 20, representing a cross-section of U.S. industries that
have developed products and services for the renewable energy industry.
Commercial Setting
As Thailand imports over half of its energy supply, in order to
reduce reliance on foreign energy sources, the Government of Thailand
has set a sustainable, renewable energy development plan to increase
alternative energy consumption to 25% by 2022. With abundant natural
resources, the Philippines also intends to increase renewable energy
(RE) production through the National Renewable Energy (RE) Program to
15,304 MW by the year 2030 from 5,438 MW in 2010. With each country
looking to reach its respective renewable energy goals, U.S. suppliers
and manufacturers are in an excellent position to capitalize on these
growing markets.
Philippine Market Breakdown
With abundant renewable energy resources, the Philippines is
already considered a world leader in renewable energy. One third of its
total electric power needs are met through resources such as solar,
wind energy, hydro and biomass resources. Total installed capacity of
the Philippines' power
[[Page 40330]]
generating plants is recorded at 15,937 MW.
Currently, 26% and 23% of power generation is by coal-fired and
oil-based power plants, respectively; however, renewable sources
contribute as well, with hydro and geothermal accounting for 21%, and
12% respectively. Wind and solar-based sources are also expected to
increase their 1% share as well. The National Renewable Energy Program
2011-2013, launched by the Department of Energy, has plans to increase
renewable energy based power capacity to as much as 15,300 MW by 2030
from 5,438 MW in 2010.
Market Demand
According to the World Fact book, energy use per capita was 423.57
KG for 2009 with 39.57% being Energy Imports. The Philippines Renewable
Energy Act of 2008 provides the following benefits to developers of
renewable energy:
Seven year income tax holiday.
Carbon credits generated from renewable energy sources
will be free from taxes. A 10% corporate income tax, as against the
regular 30%, is also provided once the income tax holiday expires.
Promoting energy self-sufficiency to 60% by 2010 from
56.6% in 2005, by using resources like solar, wind, hydropower, ocean
and biomass energy.
Renewable energy facilities will also be given a 1.5%
realty tax cap on original cost of equipment and facilities to produce
renewable energy.
The bill also prioritizes the purchase, grid connection
and transmission of electricity generated by companies from renewable
energy sources.
Power generated from renewable energy sources will be
value added tax exempt.
A net metering scheme will give capable consumers the
option to generate their own power. Net metering will allow renewable
energy producers to earn from the power they contribute to the grid,
and are also charged for electricity drawn from the grid
Hydropower, geothermal, solar, wind and biomass account for nearly
39%of the Philippines' energy requirements. The United States
Department of Energy has assessed the country's total wind potential at
76,000 MW (across an 11,000 sq km area). Other estimates of renewable
energy potential include: 147 MW from hydro applications in Visayas
Islands; 4.41 GW from geothermal energy; an annual potential average of
5.0-5.1 kWh/m2/day from solar power, and 1.78 GW from mini-hydro plants
from 888 sites.
Thailand Market Breakdown
Thailand has set a sustainable energy plan to address the country's
short and long-term supply and demand issues, and to secure Thailand's
future energy sufficiency. Renewable Energy makes up 4.7% of Thailand's
energy usage. In order to ensure energy security, the Thai government
has encouraged the development of alternative and renewable energy.
According to the (2012-2021) renewable energy development plan, the
Ministry of Energy aims to increase the proportion of alternative
energy from 4.7% up to 25 percent of the total energy consumption by
2021. The plan represents 9,208 MW of renewable electricity generation
as well. The Thai government anticipates private and public investment
over this time period to be U.S. $14.6 billion. Thailand still relies a
great deal on imported technologies and expertise. Areas of
opportunities for American companies are mainly biogas, biomass, solar,
and waste-to-energy.
Market Demand
After Indonesia, Thailand is the second largest energy consumer in
Southeast Asia. Thailand imports over half of its energy supply.
Although 81% of energy demand is supplied by natural gas and crude oil,
renewable energies and alternative energies will play a greater role in
power generation for Thailand. To encourage more renewable energy
projects, the government has put in place various support schemes. The
government initiated the ``adder tariff'' or a special rate that state
utilities pay for power from renewable sources. Renewable energy is
regarded as a priority activity by the Board of Investment. Promoted
projects will obtain an 8-year corporate income tax holiday and an
extra 5 years of 50 percent tax reduction. Projects are also exempted
from the import duty for machinery. Low interest loans are also offered
for certain projects. The maximum amount granted is 50 million Thai
baht (USD $1.5 million).
Best Prospects
U.S. manufacturers are considered competitive on quality,
efficiency and after-sale support, and may want to concentrate their
marketing efforts on the larger project developers and owners who have
the financial resources to ``do the job right.'' Below are a few types
of equipment where quality and efficiency are important:
Inverters for solar PV power projects.
Wind turbines and blades.
Gas engines for syngas and biogas.
Small gas turbines for syngas and biogas.
Gas filtration and cleaning equipment for syngas and
biogas.
Control and monitoring systems/automation.
Emissions control equipment.
Heat exchangers and heat recovery boilers for cogeneration
or tri-generation.
New technologies from the U.S. such as plasma gasification
for municipal waste.
In addition, opportunities may exist for engineering service
providers, particularly for larger-scale solar and other projects where
there is not as yet much local experience. Also, there is no local
expertise in effectively integrating distributed and small-scale
generation of multiple renewable energy generation providers into the
overall power system.
Mission Goals
The mission will help U.S. companies increase their export
potential to the Southeast Asian region by identifying project and
sales distribution opportunities in the Philippine and Thailand
renewable energy market. As such, the mission will focus on helping
U.S. companies gain market intelligence, create government and business
relationships, identify specific projects, and learn about financing
tools offered by the Asia Development Bank, as well as have discussions
regarding additional financing tools offered by the Export-Import Bank,
Overseas Private Investment Corporation, the U.S. Trade & Development
Agency as well as the Small Business Administration.
The mission's goals include:
Facilitating briefings, meetings and exposure to
government officials in Thailand and the Philippines, private sector
contacts, as well as potential in-country partners;
Promoting the U.S. renewable energy industry by connecting
delegates of U.S. renewable companies with partners, government
entities and financing opportunities;
Helping companies receive valuable exposure to the rapidly
growing, and important, renewable energy market in each country; and
Assisting U.S. businesses increase their international
reach, thus, resulting in a greater capacity to increase jobs at home
to keep up with demand, thereby furthering the goals of President
Obama's National Export Initiative.
Mission Scenario
Participants will attend country briefings, meet with government
officials, have specialized one-on-one meetings with in-country
partners,
[[Page 40331]]
participate in meetings with local utilities, and be briefed on the
programs and opportunities with the Asia Development Bank.
The precise agenda will depend upon the availability of local
government and private sector officials, as well as on the specific
goals and makeup of the mission participants.
Mission Timetable
Monday, September 17, 2012--Bangkok, Thailand
Morning
--Country briefing by U.S. Embassy staff on programs and opportunities
in the Thailand renewable energy sector.
--Meetings with Thailand government officials to discuss market
potential and opportunities for U.S. companies.
--Briefing and meetings with Thai utility to discuss business
opportunities and regulations.
Afternoon
--Pre-arranged one-on-one meetings with potential partners and
government officials to discuss market opportunities.
Tuesday, September 18, 2012--Bangkok, Thailand and Manila, Philippines
--One-on-one follow-up meetings if necessary.
--Depart for Manila, Philippines
Wednesday, September 19, 2012--Manila, Philippines
--Country briefing by U.S. Embassy staff on programs and opportunities
in the Philippine renewable energy sector.
--Meetings with Philippine government officials to discuss market
potential and opportunities for U.S. companies.
--Briefing and meetings with officials from the Asia Development Bank
to discuss programs for U.S. companies.
--Potential meetings with Philippine utility groups.
--Potential site visit.
Thursday, September 20, 2012--Manila, Philippines
--Pre-arranged one-on-one meetings with potential partners and
government officials to discuss market opportunities.
--Potential site visit.
Participation Requirements
All parties interested in participating in the trade mission must
complete and submit an application package for consideration by the
Department of Commerce. All applicants will be evaluated, on a rolling
basis, on their ability to meet certain conditions and best satisfy the
selection criteria as outlined below. A minimum of 10 and maximum of 20
companies will be selected to participate in the mission from the
applicant pool.
Fees and Expenses
After a company or organization has been selected to participate on
the mission, a payment to the Department of Commerce in the form of a
participation fee is required. The participation fee for the Trade
Mission will be $2,130.00 for a small or medium-sized firm (SME),\1\
and $3,835.00 for large firms. The fee for each additional firm
representative (large firm or SME/trade organization) is $850.00.
Expenses for travel, lodging, meals, and incidentals will be the
responsibility of each mission participant. Delegation members will be
able to take advantage of U.S. Embassy rates for hotel rooms.
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\1\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing reflects the Commercial Service's user fee schedule
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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Exclusions
The mission fee does not include any personal travel expenses such
as lodging, most meals, some local ground transportation and air
transportation from the U.S. to the mission sites and return to the
United States. Business visas may be required. Government fees and
processing expenses to obtain such visas are also not included in the
mission costs. However, the U.S. Department of Commerce will provide
instructions to each participant on the procedures required to obtain
necessary business visas.
Conditions for Participation
An applicant must submit a completed and signed mission application
and supplemental application materials, including adequate information
on the company's products and/or services, primary market objectives,
and goals for participation. If the Department of Commerce receives an
incomplete application, the Department may reject the application,
request additional information, or take the lack of information into
account when evaluating the applications.
Each applicant must also certify that the products and services it
seeks to export through the mission are either produced in the United
States, or, if not, marketed under the name of a U.S. firm and have at
least 51 percent U.S. content of the value of the finished product or
service.
Selection Criteria for Participation
Suitability of the company's products or services to the
market.
Applicant's potential for business in Philippines and
Thailand, including likelihood of exports resulting from the mission.
Consistency of the applicant's goals and objectives with
the stated scope of the mission.
Referrals from political organizations and any documents containing
references to partisan political activities (including political
contributions) will be removed from an applicant's submission and not
considered during the selection process.
Timeline for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (http://export.gov/trademissions) and
other Internet web sites, press releases to general and trade media,
direct mail, notices by industry trade associations and other
multiplier groups, and publicity at industry meetings, symposia,
conferences, and trade shows. Recruitment for the mission will begin
immediately and conclude no later than July 13, 2012. The U.S.
Department of Commerce will review applications and make selection
decisions on a rolling basis beginning in June 2012. Applications
received after July 13, 2012 will be considered only if space and
scheduling constraints permit.
Contact
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Ryan Hollowell, Kornluck Tantisaeree,
International Trade Specialist, Energy Commercial Specialist,
U.S. Department of Commerce, U.S. Department of Commerce,
[[Page 40332]]
New York USEAC, U.S. Embassy--Bangkok, Thailand,
33 Whitehall Street, 22nd Floor, Tel: 662-205-5242,
New York, NY, Email:
Kornluck.Tantisaeree@trade.gov.
Tel: 212-809-2678, ...................................
Email: Ryan.Hollowell@trade.gov. Thess Sula,
Energy Commercial Specialist,
U.S. Department of Commerce,
U.S. Embassy--Manila, Philippines,
Tel: (632) 844-3393,
Email: Thess.Sula@trade.gov.
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Frank Spector,
Senior International Trade Specialist.
[FR Doc. 2012-16595 Filed 7-6-12; 8:45 am]
BILLING CODE 3510-FP-P