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FIGURE 2.6 Renewable energy projects encompass a broad range of goods and services Design and engineering services - Design of production facilities - Foundation and subsystem design Project management services - Project development - Supply chain management - Procurement services Construction services - Civil construction (site and roads) - Installation services - Subsystem construction Planning services - Geological analysis - Feasibility studies - Resource and site evaluation - Environmental consultation - Permitting Renewable energy equipment manufacturers (OEMs) - Geothermal steam turbines - Solar photovoltaic (PV) modules - Wind turbines, blades, and towers Renewable energy generation - Biomass - Geothermal - Hydro - Solar - Wind Factors Affecting Demand and Supply for Renewable Energy Services Demand Demand for renewable energy underpins overall demand for renewable energy services. As noted previously, government policies that lower generating costs (through fiscal incentives like tax credits), mandate its use (through RPSs), and set its prices (through FITs) are principal drivers of the demand for and supply of renewable energy. Specific factors affecting the demand for renewable energy services, in turn, include the growth in installations of renewable technologies, the size and age of existing renewable capacity, and improvements or advances in renewable technologies. Growth in new installations of renewable technologies is a primary driver of demand for front-end renewable energy services. These include balance of systems (BOS) services,40 such as design and engineering, construction, and installation, and preconstruction services, such as environmental consultation and permitting services. Capacity growth, in turn, is affected by many different factors, as outlined in the previous section. In addition, increased competition among renewable technology manufacturers, greater economies of scale in manufacturing, and advances in technology and manufacturing 40 BOS refers to all components of a renewable energy power station other than the electricity- generating apparatus, such as a wind turbine or solar panel. These can include supporting infrastructure, including land, as well as wiring, switches, support racks, inverters, and batteries. Operation and maintenance (O&M) services - Monitoring and management (onsite or remotely) - Equipment maintenance (e.g., gear box or blade repair) Financial services - Project finance - Facilitating transactions of renewable energy credits (RECs) Transmission and grid- interconnection services Training services - Training of personnel Sources: Adapted from Steenblik and Geloso Grosso, “Trade in Services Related to Climate Change,” 2011, 7–11; USITC, Renewable Energy Services, 2005, 3-7; Quanta Power Generation company website http://www.quantarenewable.com/ (accessed February 19, 2013); Mastec company website, http://www.mastec.com/en/about/ (accessed February 19, 2013); Monkelbaan, “Sustainable Energy Services in a SETA,” 2013. 2-13PDF Image | Renewable Energy and Related Services: Recent Developments
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