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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Brazil does not mandate the use of local content to operate, but local content must be used in order to receive low-cost financing for projects from BNDES, the national development bank.162 In Brazil, one firm also noted that the lack of a reciprocal visa program with the United States limited the firm’s ability to bring in U.S. technical experts to work on Brazilian wind farms. Instead, this firm brings in technicians from the EU, which does have such a visa program with Brazil.163 Certain markets, such as China and Latin America, were also identified as having restrictions on capital repatriation, and China has a joint venture requirement for market entry.164 Otherwise, most industry representatives pointed to few formal trade barriers in wind services other than local-content requirements. Instead, many wind service firms face challenges related to specific economic or cultural characteristics of each market. For example, a number of service providers indicated that despite the potential opportunities, they had decided against establishing a presence in China due to perceived difficulties of doing business there as a foreign provider.165 Other dissuading factors reportedly include the high level of competition from Chinese firms, the presence of intellectual property issues compounded by a weak court system, and a lack of transparency in the grid connection process.166 Country Profiles This section profiles the wind energy markets in Brazil, Canada, and China. China was the largest market outside of the United States in 2012, with 12,960 MW in installations. Canada has a substantial wind energy market, with 935 MW installed in 2012, that provides significant export opportunities for U.S. firms. Brazil also has a rapidly growing wind market and was the largest market in Latin America in 2012, with annual installations reaching 1,077 MW in 2012.167 Brazil Brazil is noted for having some of the world’s best wind resources,168 and its wind industry has been growing rapidly over the past five years, although its total installed capacity remains low relative to that of other countries. Cumulative installed capacity jumped from 247 MW in 2007 to 2,508 MW in 2012, and Brazil was the eighth-largest global market by new installed capacity in 2012.169 This rapid expansion in wind 162 Industry representative, interview by USITC staff, São Paulo, Brazil, May 8, 2013; Nielsen, “BNDES Raises Local-Content Requirement,” September 13, 2012. 163 Industry representative, interview by USITC staff, São Paulo, Brazil, May 8, 2013. 164 Industry representative, email to USITC staff, March 8, 2013; industry representative, telephone interview by USITC staff, January 25, 2013. 165 One representative estimated that only 20 percent of wind power projects are awarded to foreigners, stating that most often, requests for proposals (RFPs) are awarded to local firms. Industry representative, telephone interview by USITC staff, January 28, 2013. 166 Industry representative, telephone interview by USITC staff, January 28, 2013; industry representative, telephone interview by USITC staff, March 12, 2013. 167 GWEC website, http://www.gwec.net/wp-content/uploads/2013/04/8Top-10-New-Installed- Capacity-Jan-Dec-2012.jpg (accessed July 9, 2013). 168 Industry representatives, interviews by USITC staff, Rio de Janeiro and São Paulo, Brazil, May 7– 10, 2013. Reportedly, the northeastern portion of Brazil benefits from strong, steady winds that tend to rarely change direction—optimal conditions for wind turbines. 169 Brazil accounted for 2.4 percent of global new installed capacity in 2012. GWEC, Global Wind Statistics 2012, February 11, 2013; GWEC, Global Wind 2012 Report, April 2013. 4-26

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