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Natural resource endowments can also affect the supply of renewable energy. Viable natural resources are needed to generate electricity, such as adequate and consistent wind resources or sunlight. In addition, adequate electricity grid connection is needed to connect renewable energy generating sources to consumption centers. For instance, inadequate grid connection can hamper efforts to develop solar and wind energy projects in many regions throughout the world, including in the United States, as described in chapters 3 and 4. Another factor affecting the supply of renewable energy is the relative prices of alternative fuels, such as petroleum or natural gas. For instance, the recent boom in U.S. natural gas production has resulted in record low prices for natural gas, making electricity generated from renewable sources less competitive absent policy supports. Overview of Renewable Energy Services Renewable energy services broadly comprise a range of services associated with the generation, transmission, distribution, and sale of electricity and/or heat produced from renewable energy sources.37 These also include services related to the planning, design, construction, and operation and maintenance of renewable energy installations, among others.38 Figure 2.6 provides examples of different types of renewable energy services associated with renewable energy production. Although some of these services may overlap, services that are typically offered in the early stages of project development include planning, design, and engineering services (so-called “front-end” services). Project management and financial services are typically offered during the entire development of the project. Operations and maintenance (O&M) services—so-called “back-end” services—are important once the project is up and running. Firms may offer one or more of these services. For instance, some firms may provide consulting services that focus on the planning stages of a renewable energy project, including geological analysis, site and resource evaluation, and environmental permitting. Other firms may provide a broader array of service offerings, such as project management services (including design services) and engineering, procurement, and construction (EPC) services. O&M services may be offered by original equipment manufacturers (OEMs) that produce the technologies that generate renewable energy, such as wind turbines or solar modules; may be done in-house; or may be carried out by unaffiliated independent service providers (ISPs). Consumers of renewable energy services are principally the developers and operators of larger-scale renewable energy projects, such as wind or solar farms that generate electricity for sale to public or private electric utilities. Other consumers of renewable energy services may include private landowners who install smaller-scale renewable energy systems (e.g., rooftop solar installations) and industrial consumers of electricity, or other entities or individuals not connected to an electricity grid.39 37 USITC, Renewable Energy Services, 2005, 1-2. 38 Ibid. 39 Steenblick and Geloso Grosso, “Trade in Services Related to Climate Change,” 2011, 10. 2-12PDF Image | Renewable Energy and Related Services: Recent Developments
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