[Federal Register Volume 77, Number 131 (Monday, July 9, 2012)]
[Pages 40329-40332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-16595]



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.


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:
     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

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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 
     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 

[[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

--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.
--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.

    \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).


    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 

Selection Criteria for Participation

     Suitability of the company's products or services to the 
     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.

Ryan Hollowell,                      Kornluck Tantisaeree,
International Trade Specialist,      Energy Commercial Specialist,
U.S. Department of Commerce,         U.S. Department of Commerce,

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New York USEAC,                      U.S. Embassy--Bangkok, Thailand,
33 Whitehall Street, 22nd Floor,     Tel: 662-205-5242,
New York, NY,                        Email:
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.

Frank Spector,
Senior International Trade Specialist.
[FR Doc. 2012-16595 Filed 7-6-12; 8:45 am]