[Federal Register Volume 77, Number 202 (Thursday, October 18, 2012)]
[Notices]
[Pages 64106-64108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25647]
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DEPARTMENT OF COMMERCE
International Trade Administration
Renewable Energy and Energy Efficiency Trade Policy Mission to
Chile
AGENCY: International Trade Administration, Commerce.
ACTION: Notice.
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Mission Description:
The U.S. Department of Commerce's International Trade
Administration (ITA) is organizing a Renewable Energy and Energy
Efficiency (RE&EE) Trade Policy Mission to Santiago, Chile from April
15-16, 2013. The mission is designed to be led by a senior Department
of Commerce official, and will focus on: (1) Creating a policy
environment conducive to growth in Chile's RE&EE market; and (2)
introducing U.S. RE&EE exporters to key Chilean Government officials.
Mission participants will also be invited to showcase their U.S.-made
RE&EE technologies at an important industry-specific trade show
following the trade policy mission at their own expense.
The RE&EE trade policy mission will promote the competitiveness of
U.S. wind, solar, geothermal, biomass, hydropower, waste-to-energy,
smart grid, and energy efficiency exporters in a key emerging market
and demonstrate U.S. Government support for Chile's renewable energy
goals. The mission supports ITA's commitments contained in the
Renewable Energy and Energy Efficiency Export Initiative (RE4I), which
aims to significantly increase U.S. RE&EE exports by the end of 2014,
the National Export Initiative time frame.
If firms decide to participate in the International Fair of
Technologies (IFT) Energy 2013 trade show immediately following the
trade mission (April 17-19, 2013), which is encouraged by the
Department, they will be expected to register and pay for their
participation in the show separately from their trade policy mission
participation fees.
Commercial Setting:
Chile's fast growing economy and business friendly environment
provide an attractive market for U.S. exporters. The rapidly expanding
Chilean economy, which grew 6.1% in 2011, has caused a dramatic
increase in the country's energy demand. Estimates indicate that Chile
must install an additional 8 gigawatts (GW) of generating capacity by
2020 to meet its growing demand. Currently, Chile is dependent on
imported fossil fuels for a large portion of its power generation
(imported natural gas accounts for a third of the country's power
capacity). As a result, energy prices have increased along with energy
demand, incentivizing the development of the country's renewable energy
resources. In fact, renewable energy technologies are much closer to
``grid parity'' in Chile than in most markets, enhancing their
competitiveness.
Chile has a strong and growing energy industry. The country
privatized its power sector in 1982, and today, has 70 power generation
companies (4 dominant firms), five transmission operators (1 dominant),
and 34 distribution companies (4 dominant). In renewable energy, Chile
led Latin America in implementing a renewable energy portfolio standard
(RPS). By 2011, Chilean utilities were required to produce 5% of their
output from renewable energy sources; the quota increases by 0.5%
annually from 2015 until 2024. Despite the RPS, renewable energy (aside
from large hydropower) contributed just 2.7% of Chile's power capacity
at the end of 2011. As a result, Chile must make a substantial
investment in the sector to achieve its goal of 20% renewable energy
capacity by 2020.
Fortunately, Chile possesses some of the world's largest potential
for renewable energy. By 2011, Chile had installed only 0.198 GW of
wind capacity, for example, despite an estimated potential of up to 10
GW. Likewise, Chile has developed only about half its biomass potential
and has a small fraction of at least 2 GW of geothermal potential under
development. Chile's solar potential is one of the largest in the world
and--like other renewable energy technologies--has been largely
undeveloped.
Chile's new National Energy Strategy contains six pillars: Energy
efficiency; renewable energy; traditional fossil fuels; smart grid;
competition in electricity distribution; and regional electricity
distribution. In a speech on February 28, 2012, President Pi[ntilde]era
announced the Government of Chile (GoC) would introduce 100 laws and
administrative measures to implement the new strategy.
The mission will occur at an opportune time, as Chilean policy
makers seek to establish policy to support the growth of renewable
energy in their country. By facilitating high-level discussions between
U.S. exporters and Chilean officials, the mission will help create a
burgeoning export market for U.S. RE&EE companies, substantially
increasing U.S. exports to a country whose resource potential and
business environment portends significant growth for years to come.
ITA's U.S. and Foreign Commercial Service (US&FCS) at the U.S.
Embassy in Santiago reports that U.S. companies are well positioned to
meet export orders; and that potential policy incentives could strongly
catalyze additional development. Opportunities are expected in the
wind, solar, geothermal, biomass, hydropower, and energy efficiency
sectors. Several U.S. firms have already made investments in Chile's
renewable energy sector.
Mission Goals:
The RE&EE trade policy mission will facilitate the development of
an export market by supporting the establishment of policy incentives
in Chile's RE&EE market. The mission will combine the policy
development and advocacy efforts of a traditional trade policy mission
with networking and business outreach opportunities for participating
firms.. The delegation will have a unique opportunity to meet
government officials, discuss policy concerns, and suggest creative
solutions to Chile's energy challenges. Several topics pertinent to the
creation of a thriving renewable energy market will be addressed,
including:
Establishment of incentives to help Chile meet the goals
of its National Energy Strategy;
Development of interconnection standards and feed-in
tariffs that would attract global investment and provide an incentive
for development;
Mapping of renewable energy resources;
Strengthening of policy and regulatory cooperation between
the United States and Chile; and
Development of local financing institutions to further
encourage development.
Trade policy mission participants are also encouraged to exhibit at
the IFT Energy 2013 trade show immediately following the trade policy
mission. Participation in IFT Energy 2013 is not mandatory and firms
that exhibit will be expected to make arrangements with the conference
organizer separate from their participation in the trade policy
mission.
Mission Scenario:
The Renewable Energy and Energy Efficiency Trade Policy Mission
will provide several opportunities for participants to discuss policy
challenges
[[Page 64107]]
with Chilean Government officials. In addition, mission participants
will have an opportunity to showcase their products in a U.S. Pavilion
during the IFT Energy 2013 trade show.
During the trade policy mission, participants will:
Receive market briefings on the status of the renewable
energy market in Chile, including an assessment of upcoming
opportunities;
Receive a Market Assessment Report on opportunities in
Chile's renewable energy market;
Be introduced to key Chilean government officials and
decision-makers during government-to-government meetings for
opportunities to discuss policies and the business environment; and
Attend a networking reception with Chilean business
persons and government officials organized by the U.S. Foreign and
Commercial Service.
Proposed Timetable*
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Date Day Activity
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April 14...................... Sunday........... Arrive in Santiago,
Santiago, Chile.. Chile.
April 15...................... Monday........... Market
Santiago, Chile.. briefing on RE&EE
industry in Chile
for mission
participants by
US&FCS Santiago and
Embassy staff.
Meetings
with key GoC
officials and
stakeholders.
April 16...................... Tuesday.......... Lunch and
Santiago, Chile.. seminar at AmCham
Chile.
Networking
and exchange with
key private sector
contacts.
Networking
reception at
Ambassador's
Residence.
Mission
ends.
April 17...................... Wednesday........ [OPTIONAL]
Santiago, Chile.. Opportunity to
attend/exhibit IFT
Energy 2013.
April 18...................... Thursday......... [OPTIONAL]
Santiago, Chile.. Opportunity to
attend/exhibit IFT
Energy 2013.
April 19...................... Friday........... [OPTIONAL]
Santiago, Chile.. Opportunity to
attend/exhibit IFT
Energy 2013.
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*Note: The final schedule will depend on the availability of local
government and business officials, specific goals of the mission
participants, and air travel schedules.
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 based on their
ability to meet certain conditions and best satisfy the selection
criteria as outlined below. A minimum of 15 and maximum of 25 companies
will be selected to participate in the mission from the applicant pool.
U.S. companies already doing business in Chile as well as U.S.
companies seeking to enter to the Chilean market for the first time may
apply.
Fees and Expenses:
After a company or organization has been selected to participate on
the mission, a payment to the Department of Commerce of a participation
fee is required. The participation fee for the Trade Mission will be
$1,100 for a small or medium-sized firm (SME) \1\, and $1,400 for large
firms. The fee for each additional firm representative (large firm or
SME/trade organization) is $500. 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. The cost to exhibit at the show is $575 per square
meter of booth space; this will be paid by the trade mission
participant directly to the show organizer.
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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, local ground transportation, except as stated
in the proposed timetable, or air transportation to and from the United
States. Business visas are not required. Participants will be expected
to register and pay for the IFT Energy 2013 trade show separately from
their trade policy mission registration and dues, if they decide to
participate in the show following the mission.
Conditions for Participation:
An applicant must submit a completed mission application signed by
a company officer, together with 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 or 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 has at
least 51 percent U.S. content of the value of the finished product or
service.
Selection Criteria for Participation: Selection will be based on
the following criteria:
Suitability of the company's products or services to the
market;
Applicant's potential for business in Chile and in the
region, 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. Diversity of company size and
location may also be considered during the review 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
[[Page 64108]]
calendar (http://export.gov/trademissions) and other Internet Web sites
(including the Renewable Energy & Energy Efficiency Exporters Portal at
www.export.gov/reee), 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 March 1, 2013. The U.S. Department of Commerce
will review applications and make selection decisions on a rolling
basis beginning in November 1, 2013. Applications received after March
1, 2013 will be considered only if space and scheduling permit.
Contacts:
Ryan Mulholland, Renewable Energy Trade Specialist, MAS--Office of
Energy and Environmental Industries, Phone: (202) 482-4693, Email:
[email protected];
Ellen Lenny-Pessagno, Senior Commercial Officer, U.S. Commercial
Service--Santiago, Chile, Tel: (56) 2-330-3610, Email: [email protected].
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-25647 Filed 10-17-12; 8:45 am]
BILLING CODE 3510-FP-P