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legislation to bring the FIT program into compliance with the WTO ruling.125 The United States filed a request for dispute settlement consultations with India on February 6, 2013.126 In regard to European Union (EU) member states, China filed a request for dispute settlement consultations with the EU, as well as EU member states Greece and Italy, on November 5, 2012.127 Some local-content incentives/requirements apply to goods, while others apply to both goods and services. In Ontario, Canada, for example, the rules specify that for projects over 10 kW in size, 60 percent of the content must be sourced from within Ontario. In calculating this percentage, both goods and services are taken into account: Ontario identifies the qualifying percentage for each major piece of equipment and for the major services associated with solar installation. Services associated with crystalline silicon (c- Si) projects account for only 22 percent of the project value and those associated with thin-film projects for 28 percent of the value, so local sourcing of equipment is necessary to meet the 60 percent local-content requirement.128 Since several of the major U.S. utility project developers are also equipment providers, the requirement to source equipment locally may affect their ability to also provide services in the market. First Solar, for example, only develops projects with its own equipment and does not have a manufacturing plant in Ontario. As a result, the company indicates that its systems do not meet local-content requirements, and since First Solar provides services only in association with its own equipment, it is also excluded from providing services in Ontario.129 SunEdison contracted with Flextronics to assemble modules locally in order to meet Ontario’s local-content requirements, but the ease with which companies can adapt to these requirements by establishing local production or sourcing local products varies by firm and technology type.130 Standards and certification issues can also serve as a barrier to PV module trade, and therefore to U.S. exports of services. One example, according to the Office of the U.S. Trade Representative (USTR) and industry representatives, is Korea’s certification requirement for PV modules.131 Korea’s PV standards cover all types of PV modules and, therefore, all types of modules can be sold in the Korean market. However, in order to qualify to be used in government programs, modules must be certified by the Korea Energy Management Corporation (KEMCO), and certification standards only exist for c- Si modules and amorphous silicon (a-Si) thin-film modules. Korea recently conducted an environmental assessment of copper indium gallium (di)selenide (CIGS) and cadmium telluride (CdTe) thin-film modules, and did not find significant concerns with CIGS 125 There are separate FIT programs for large and small projects. Ontario Ministry of Energy, FIT Program Directive, June 12, 2013, 3 126 WTO website, Dispute DS456: India—Certain Measures Relating to Solar Cells and Solar Modules, http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds456_e.htm (accessed July 2, 2013). 127 WTO website, Dispute DS452: European Union and certain Member States—Certain Measures Affecting the Renewable Energy Generation Sector, http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds452_e.htm (accessed July 2, 2013). 128 Ontario Power Authority, “Feed-in Tariff Contract (FIT Contract),” Version 2.1, December 14, 2012, exhibit C, 7–8; Ontario Power Authority, “Feed-in Tariff Program: FIT Rules,” Version 2.1, December 14, 2012, 30. 129 First Solar, “Form 10-K,” February 29, 2012, 6, 9. 130 MEMC, “MEMC and its SunEdison Subsidiary,” July 18, 2011; MEMC, “SunEdison First to Announce,” April 15, 2011. 131 The information in this paragraph is based on USTR, 2013 Report on Technical Barriers to Trade, April 2013, 46–47; industry representative, telephone interview by USITC staff, May 30, 2013; WTO, Committee on Technical Barriers to Trade, “Minutes of the Meeting Held on March 24–25, 2011,” May 26, 2011, 48–49; WTO, Committee on Technical Barriers to Trade, “Minutes of the Meeting Held on June 13–15, 2012,” September 18, 2012, 26–27. 3-25PDF Image | Renewable Energy and Related Services: Recent Developments
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