Multi-Stop Renewable Energy Gold Key Mission

Manila, Philippines and Bangkok, Thailand

September 17-20, 2012

Thailand and the Philippines are both poised to make significant impacts in the renewable energy industry and offer promising markets for the sale of U.S. energy products and services. From September 17-20th, come join us in these two accelerating markets giving companies on a two-stop Gold Key Mission to learn about the untapped business opportunities. During this mission, companies will have two sets of partner meetings in each stop, briefings by government officials and utilities, and learn about the funding and financing available to them as supported by the U.S. Department of Commerce and other government agencies.

Who Should Attend?

Several U.S. companies figure prominently in the supply of RE equipment, technology and services to these markets. Suppliers and manufacturers of wind turbines, solar energy technology, solar photovoltaic (PV) modules, chargers and inverters, and biomass furnaces, digesters, hair dryers, boilers and cogeneration equipment should find opportunities in both markets. Due to limited local expertise, engineering and project development service providers are also valuable.

Potential Meetings for Delegates:

  • One-on-One meetings with potential partners in each market
  • Asian Development Bank Briefing
  • Briefings by US DOC Staff in each market
  • Meetings with relevant government officials from the Philippines and Thailand
  • Briefings with local utilities on doing business within the market.
  • Networking and site visits with potential partners and customers

Trade Mission Details:

What: Multi-Stop Renewable Energy Gold Key Mission to Manila, Philippines/Bangkok, Thailand

When: September 17 – 20, 2012

Cost: SME (Under 500 Employees) – US$2,130

Large Company – US$3,835

Cost includes ground transportation at both stops, coordination of 8-10 meetings in each market, government briefings, some meals and a discounted hotel rate.

Additional Company Participant: $850

Click here to fill out the preliminary interest form.

Contact: Ryan Hollowell, International Trade Specialist, USEAC-NYC; Ryan.Hollowell@trade.gov

Market Background Information:

Importing over half of its energy supply, Thailand has set a sustainable, renewable energy development plan to increase alternative energy consumption to 25% by 2022. With abundant natural resources, the Philippine National Renewable Energy Program plans to increase the RE-based power capacity to 15,304 MW by the year 2030. With each country looking to reach its respective goals, U.S. suppliers and manufacturers are in an excellent position to capitalize on these growing markets.

Best Market Potential:

Philippines: Thailand:

Biomass/Waste-to-Energy Biomass/Biogas/Waste-to-Energy

Geothermal Wind

Hydro Solar

Solar

Wind

Philippine Market Breakdown:

With abundant renewable energy resources, the Philippines are already considered a world leader in renewable energy. One third of its total electric power needs are met through resources such as ideal solar conditions, robust wind energy sites, and an abundance of hydro and biomass resources. Total installed capacity of the Philippines’ power generating plants is recorded at 15,937 megawatts.

Currently, 26% and 23% of power generation is by coal-fired and oil-based power plants, respectively; however, renewable sources are entering the mix as well, with hydro, natural gas, and geothermal accounting for 21%, 18%, and 12% respectively. Wind and solar-based sources are also expected to increase their 1% share as well. The National Renewable Energy Program 2011-2013, launched by the Department of Energy, has plans to increase renewable energy based power capacity to as much as 15,300 Megawatts by 2030. This would triple the country’s 2010 energy-based capacity of 5,438 MW.

Market Demand

According to the World Fact book, energy use per capita was 423.57 KG for 2009 with 39.57% being Energy Imports. The Philippines Renewable Energy Legislation of 2008 provides the following benefits to developers of renewable energy:

  • Seven year income tax holiday.
  • Carbon credits generated from renewable energy sources will be free from taxes. A 10% corporate income tax, as against the regular 30%, is also provided once the income tax holiday expires.
  • Energy self-sufficiency to 60% by 2010 from 56.6% in 2005, by tapping resources like solar, wind, hydropower, ocean and biomass energy
  • Renewable energy facilities will also be given a 1.5% realty tax cap on original cost of equipment and facilities to produce renewable energy.
  • The bill also prioritizes the purchase, grid connection and transmission of electricity generated by companies from renewable energy sources.
  • Power generated from renewable energy sources will be value added tax exempt.
  • A net metering scheme will give capable consumers the option to generate their own power. Net metering will allow renewable energy producers to earn from the power they contribute to the grid, and are also charged for electricity drawn from the grid

Hydropower, geothermal, solar, wind and biomass account for nearly 39% of the Philippines’ energy requirements. The United States Department of Energy has assessed the country's total wind potential at 76,000 MW (across an 11,000sq km area). Other estimates of renewable energy potential include: 147MW from hydro applications in Visayas; 4.41GW from geothermal energy; an annual potential average of 5.0-5.1kWh/m2/day from solar power, and 1.78GW from mini-hydros from 888 sites.

Thailand Market Breakdown:

Summary

Thailand has set a sustainable energy plan to address the country’s short and long-term supply and demand issues, and to secure Thailand’s future energy sufficiency. Renewable Energy makes up 4.7% of Thailand’s energy usage. In order to ensure energy security, the Thai government has encouraged the development of alternative and renewable energy. According to the (2012-2021) renewable energy development plan, Ministry of Energy aims to increase the proportion of alternative energy up to 25 percent of the total energy consumption by 2022. The plan represents 9,208 megawatts of renewable electricity generation as well. The Thai government anticipates private and public investment over this time period to be US $14.6 billion. Thailand still relies a great deal on imported technologies and expertise. Areas of opportunities for American companies are mainly biogas, biomass, solar, and waste-to-energy.

Market Demand

After Indonesia, Thailand is the second largest energy consumer in Southeast Asia. Thailand imports over half of its energy supply. Although 81% of energy demand is supplied by natural gas and crude oil, renewable energies and alternative energies will play greater role in power generation for Thailand. To encourage more renewable energy projects, the government has put in place various support schemes. The government initiated the “adder tariff” or a special rate that state utilities pay for power from renewable sources. Renewable energy is regarded as a priority activity by the Board of Investment. Promoted projects will obtain an 8-year corporate income tax holiday and an extra 5 years of 50 percent tax reduction. Projects are also exempted from the import duty for machinery. Low interest loans are also offered for certain projects. The maximum amount granted is 50 million Thai baht (USD $1.5 million).

Best Prospects

Although Chinese manufacturers are very competitive on price, they are not so competitive on quality, efficiency and after-sale support. US manufacturers and suppliers should concentrate their marketing efforts on the larger project developers and owners who have the financial resources to “do the job right”. Below are a few types of equipment where quality and efficiency are important:

  • Inverters for solar PV power projects
  • Wind turbines and blades
  • Gas engines for syngas and biogas
  • Small gas turbines for syngas and biogas
  • Gas filtration and cleaning equipment for syngas and biogas
  • Control and monitoring systems/automation
  • Emissions control equipment
  • Heat exchangers and heat recovery boilers for cogeneration or tri-generation
  • New technologies from the US such as plasma gasification for municipal waste

In addition, there should be opportunities for engineering service providers, particularly for larger-scale solar and other projects where there is not as yet much local experience. Also, there is no local expertise in effectively integrating distributed and small-scale generation of multiple renewable energy generation providers into the overall power system.