Renewable Energy and Related Services: Recent Developments

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Renewable Energy and Related Services: Recent Developments ( renewable-energy-and-related-services-recent-developments )

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reportedly lack the manufacturing base to produce renewable energy technologies and have little to no domestic capacity to design renewable energy projects, including wind, solar, or geothermal energy projects. 78 As a result, both the renewable energy technologies and many of the renewable energy services must be imported.79 Countries that have experienced growth in installed capacity of renewable energy, yet lack the domestic capacity to design renewable energy projects, present an opportunity for U.S. exporters of renewable energy services. For instance, some firms offering project development services in the solar PV sector are targeting emerging solar PV markets like Chile and South Africa, as noted in chapter 3. Even in developed countries that have the domestic capacity and expertise to provide renewable energy services, project developers may choose to import services from an international supplier based on cost, quality, or other considerations.80 In this case, opportunities for U.S. exporters of renewable energy services exist in mature markets as well. Barriers to Trade and Investment in Renewable Energy Services As noted in chapter 1, renewable energy services comprise a broad range of services that largely fall within the following three Central Product Classification (CPC) groups: services incidental to energy distribution; other professional, technical, and business services; and construction services. Measures that act as barriers to trade and investment in renewable energy services tend to be horizontal in nature; that is, they affect a broad range of services, such as laws that pertain to a country’s general investment regime, or to its immigration policy. Horizontal Measures Affecting Trade and Investment in Renewable Energy Services As noted above, renewable energy services are typically supplied by setting up a commercial presence and by temporarily moving service providers into a client’s territory. Barriers that limit either activity are thus the most likely to impede firms’ ability to supply renewable energy services in foreign markets. Certain barriers to renewable energy services can be identified by World Trade Organization (WTO) members’ schedules of country-specific General Agreement on Trade in Services (GATS) commitments that are classified within the CPC groups noted above.81 Among the countries that trade these services the most,82 investment restrictions are the most common barriers to the establishment of a commercial presence for 78 Steenblick and Geloso Grosso, “Trade in Services Related to Climate Change,” 2011, 4. 79 Ibid., 4. 80 Ibid., 37. 81 For a list of selected country-specific schedules of commitments on professional, technical, and business services and on construction services, see USITC, Renewable Energy Services, 2005. 82 Major importers of architectural, engineering, and other technical services (a subset of other professional, technical, and business services) are the EU, India, Canada, Brazil, and Russia. Major importers of construction services are the EU, Japan, Russia, Kazakhstan, and China. Kim, “Facilitating Trade in Services,” 2011, 15, 24. 2-21

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