[Federal Register Volume 74, Number 237 (Friday, December 11, 2009)]
[Notices]
[Pages 65755-65758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-29557]
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DEPARTMENT OF COMMERCE
International Trade Administration
Mission Statement; Solar Energy Trade Mission to India, February
15-19, 2010
AGENCY: Department of Commerce.
ACTION: Amendment.
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Mission Description
The United States Department of Commerce, International Trade
Administration, U.S. and Foreign Commercial Service (CS), is organizing
the second Solar Energy Trade Mission to India from February 15 to 19,
2010. Led by a senior Department of Commerce official, the mission will
continue to build on the Department's efforts to open the burgeoning
Indian solar market to U.S. firms and to position U.S. companies to
seize export opportunities as India gears up to rapidly expand its
solar energy capabilities. Ideal trade mission participants will be
representatives of leading U.S. manufacturers of solar technology,
including utility-scale technologies such as photovoltaic and
concentrated solar power, and manufacturers of products such as solar
street lighting, solar home lighting, and solar water pumping systems.
The mission will also be open to a limited number of representatives of
trade associations, councils and groups in the solar energy sector. The
mission will visit three cities: New Delhi, Bangalore, and Mumbai,
where participants will receive market briefings and meet with key
government decision makers and prospective private sector partners
during customized, one-on-one meetings.
Commercial Setting
India is facing a critical shortage of energy. Due to its sustained
economic growth, the country suffers from an energy deficit, which
stands to worsen as India's economy and population continue to grow. As
a result of the energy shortage, Indian consumers face frequent periods
of power outages, and prices for electricity are high. In addition to
the need for more capacity, the Indian government at both state and
national levels has begun to recognize the threat posed by global
climate change. As such, the Government of India (GOI) acknowledges
that some of the country's energy needs must be met with cleaner
sources of power. All of these issues have compelled the GOI to move
forward with an action plan to address its energy needs.
In 2008, the GOI released its National Action Plan on Climate
Change (NAPCC), part of which addressed energy needs and particularly
focused on solar energy as an area of development. Concurrent with the
development of the NAPCC, three Indian states--Rajasthan, Gujarat, and
Karnataka--have progressively launched their own efforts to develop
solar projects. Since the NAPCC was initially released, CS India has
aggressively worked to facilitate the development of the nascent Indian
solar market, focusing on the aforementioned states. In March 2009 the
first U.S. Solar Energy Trade Mission to India took place, which
brought 14 U.S. companies to India, along with Deputy Assistant
Secretarial leadership from the Departments of Commerce and Energy, and
a board member from the U.S. Export-Import Bank. The mission
successfully introduced U.S. solar energy technology to relevant Indian
officials, and, as a result of the mission, U.S. firms have signed
memoranda of understanding to develop 5MW solar projects in Rajasthan.
Prior to this trade mission Indian officials acknowledged that they
were not familiar with U.S. solar technologies, and that they believed
European firms had more proven products. The trade mission helped to
highlight the strength and cost effectiveness of U.S. technologies--a
crucial step for positioning U.S. firms in this market.
As a follow-up to the first trade mission, in July 2009 CS India
organized a solar finance roundtable in Mumbai, which brought together
key government decision makers from Rajasthan, project finance bankers,
and two U.S. energy developers. Lack of project finance options had
emerged as a stumbling block to the development of utility-scale solar
power projects in Rajasthan. Roundtable participants addressed critical
issues such as power purchase agreements, renewable energy purchase
obligations, transmission line issues and tariff structures, and the
Rajasthan government officials confirmed that they would put the policy
mechanisms in place to make the solar projects financially viable.
Building on the positive momentum to date, CS India approached the
U.S. Trade and Development Agency to fund an orientation visit to the
U.S. by officials from Rajasthan. The visit, which will take place
during October 2009, will coincide with Solar Power International, the
largest solar industry trade show in the United States. By attending
this show the Indian officials will be exposed to the variety and depth
of U.S. solar technologies, and they will visit demonstration sites to
see firsthand the integration of solar energy into the U.S. power grid.
The second Solar Trade Mission to India will continue to build on
the above efforts and will help keep U.S. firms at the forefront of
this emerging market. In particular, the mission will continue CS
India's extensive efforts to positively influence policy and will allow
U.S. manufacturers to weigh in with Indian officials as crucial
government decisions are soon to be made that will impact the direction
this market will take.
[[Page 65756]]
The GOI is poised to release its highly anticipated National Solar
Plan, which will outline new government initiatives aimed at developing
solar energy projects. While details of this plan are still being
finalized, it is expected to mandate at least 20,000MW of solar energy
generation by 2020, and up to 200,000MW by 2050, and will offer
government funding and incentives toward that end. The plan will also
mandate installation of solar rooftop panels for 10,000 government
buildings, in addition to installing household rooftop solar units in
one million homes by 2020.
Price considerations for solar energy have been and will continue
to be an issue, yet some estimates indicate that solar energy prices
will reach parity with conventional energy sources in as little as
three years. Anticipated price parity, coupled with the expected
government incentives, make it even more urgent that U.S. solar firms
establish themselves in India right now.
The second Solar Trade Mission to India will expose participants to
key officials from the states most ready to move forward on solar
projects, as outlined below.
Rajasthan
The state of Rajasthan is deploying a broad, ambitious solar energy
development framework. According to studies conducted by the U.S.
Department of Energy, Rajasthan receives the second largest amount of
solar radiation in the world. State officials have long recognized the
viability of solar for their energy needs, and they are finalizing
plans to erect numerous utility-scale projects throughout the state. In
support of these goals, the state is preparing to formalize the
critical government policies that are needed to catapult these projects
off the drawing board. Such policies will include: land availability
secured by the government; guaranteed assistance with transmission
lines and interconnection; and, power purchase agreements ensuring that
all power produced by solar projects will be purchased at pre-
determined rates. Projects totaling 56MW have been allocated to
different developers, including two separate 5MW projects to U.S.
developers. In addition, the Asian Development Bank is funding
construction of a 50MW solar project in the state, and this project
will be open to competitive bidding. The state has a long-term vision
to establish itself as a global hub for solar energy production, and it
is important that U.S. firms are present as this market moves forward.
Opportunities for U.S. exports associated with these projects will
include concentrated solar power technologies, photovoltaic equipment,
rooftop solar installations, and household solar photovoltaic
equipment.
Gujarat
After Rajasthan, the state of Gujarat receives the second largest
amount of solar radiation in India. Gujarat state officials are moving
quickly to facilitate the development of solar energy projects, and in
August 2009 they approved a range of projects totaling 716MW allocated
to thirty-four different project developers, four of which are U.S.
firms. Because these allocations have recently been made, time is of
the essence. Many of the project developers are still in the process of
selecting their technical partners, and U.S. firms will lose out to
European competitors if they are not here soon to cultivate these
partnerships. In support of the above solar efforts, Gujarat will
develop the appropriate power purchase agreements and price guarantees,
and will guarantee to lay power lines from the solar substations to the
main grid. Land is already being set aside for these projects. Gujarat
will also mandate that ten percent of all power purchased in the state
must be from renewable sources, all of which will help develop the
nascent solar industry. Opportunities for U.S. exports associated with
these projects will include: concentrated solar power technologies,
photovoltaic equipment, rooftop solar installations, and household
solar photovoltaic equipment.
Karnataka
The State of Karnataka leads the country for solar applications.
Bangalore has the largest deployment of rooftop solar water heaters in
the country, generating a daily equivalent of 200 MW, with 60% of the
city's household and industrial units using solar water heaters. The
Government of Karnataka (through the Karnataka Renewable Energy
Development Limited--KREDL) has made roof-top thermal systems mandatory
for all new residential/industrial structures and has implemented a Rs
50 (about $1.10) discount (subsidy) for the monthly electric bill from
the Bangalore Electric Supply Company. KREDL is also setting up two
demonstration projects of 3MW and 5MW in North and South Bangalore for
grid-connected solar power systems, which will be India's first grid-
connected solar projects. In addition to these measures, the Karnataka
state government plans to install solar panels in major state buildings
and public utilities. Under the recently-announced solar city project,
the state government is planning to install photovoltaic panels with a
capacity of 2-5 KW on rooftops of over 10,000 houses, for residential
use with the leftover energy to be pumped to the state grid. Moreover,
with its thriving semiconductor industry, experts predict that
Bangalore will become a solar hub in India. Finally, KREDL just invited
more bids from solar technology providers to design, finance, build,
operate and maintain solar/hybrid power plants and collect user fees to
provide solar energy on a sustainable basis for the requirement of
village clusters.
Maharashtra
The state of Maharashtra, home to the city of Mumbai, stands as
India's commercial and industrial powerhouse. State officials have set
an ambitious renewable energy purchase target of ten percent. Some of
this energy will be generated through solar technologies, and the state
recently announced its intent to develop a 10MW solar thermal power
plant. The GOI also plans to install solar rooftop systems in
households and government buildings nationwide, and many firms that
will implement this plan are located in Maharashtra, making it an ideal
venue to promote U.S. solar rooftop technologies. Export opportunities
in Maharashtra include solar thermal systems and rooftop solar energy
units.
Mission Goals
The goals of the second Solar Energy Trade Mission to India are to
help U.S. solar technology companies initiate or expand their exports
to India by providing introductions to industry representatives and
potential partners, and by providing networking opportunities, policy
discussions with the central and state governments, and current market
information.
Mission Scenario
The mission will begin in New Delhi, where participants will meet
with officials from the state of Rajasthan and potential private sector
partners. Next, the participants will visit Bangalore, where they will
meet with energy sector entrepreneurs and officials from the state of
Karnataka. The final stop on the mission will be Mumbai, where
participants will meet with government and private sector
representatives from the states of Gujarat and Maharashtra, as well as
leading Mumbai bankers who are familiar with the solar market and
interested in providing project finance. The participants will also
attend policy
[[Page 65757]]
briefings by U.S. Embassy officials, market and commercial briefings by
the CS, and networking events offering further opportunities to speak
with local business and government representatives. U.S. participants
will be counseled before and after the mission by CS India staff.
Participation in the mission will include the following:
Pre-travel briefings/webinar on subjects ranging from
business practices in India to security;
Pre-scheduled meetings with potential partners,
distributors, end users, or other local industry contacts in New Delhi,
Bangalore, and Mumbai;
Airport transfers in New Delhi, Bangalore, and Mumbai;
Meetings with Indian government officials; and,
Participation in networking receptions in New Delhi,
Bangalore, and Mumbai.
Proposed Mission Timetable
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Sunday, February 14, 2010.... New Delhi
Delegates arrive in New Delhi/check-in and rest overnight.
Monday, February 15, 2010.... New Delhi
Embassy Briefing.
Meetings with Central Government Officials.
Meetings with officials from the state of Rajasthan.
Business matchmaking sessions.
Networking reception.
Tuesday, February 16, 2010... New Delhi/Bangalore
Business matchmaking sessions in New Delhi.
Travel to Bangalore.
Networking reception in Bangalore.
Wednesday, February 17, 2010. Bangalore/Mumbai
CS Bangalore market briefing.
Meetings with officials from the state of Karnataka.
Business matchmaking sessions.
Late evening travel to Mumbai.
Thursday, February 18, 2010.. Mumbai
CS Mumbai market briefing.
Meetings with officials from the state of Maharashtra.
Meetings with officials from the state of Gujarat.
Meetings with project finance bankers.
Business matchmaking sessions.
Networking reception.
Friday, February 19, 2010.... Mumbai
Business matchmaking session \1/2\ day.
Departure for the U.S.
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Participation Requirements
All persons interested in participating in the Solar Trade Mission
to India must complete and submit an application package for
consideration by the Department of Commerce. All applicants will be
evaluated on their ability to meet certain conditions and best satisfy
the selection criteria as outlined below. A minimum of 8 and a maximum
of 15 organizations will be selected to participate in the mission from
the applicant pool. U.S. companies already doing business in India as
well as U.S. companies seeking to enter the Indian market for the first
time are encouraged to apply. U.S. trade councils, associations or
groups in the solar energy sector may also apply to participate in the
mission.
Fees and Expenses
After a company or trade organization has been selected to
participate in the mission, a payment to the Department of Commerce in
the form of a participation fee is required. The participation fee will
be $5,200 for large firms and organizations and $4,500 for a small or
medium-sized enterprise (SME) or small organization, which will cover
one representative.\1\ The fee for each additional firm representative
(large firm or SME) is $750. Expenses for travel, lodging, most meals,
and incidentals will be the responsibility of each mission participant.
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\1\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing reflects the Commercial Service's user fee schedule
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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Conditions for Participation
An applicant must submit a completed and signed mission
application and supplemental application materials, including adequate
information on the company's products and/or services, primary market
objectives, and goals for participation.
Each applicant must also certify that the products and
services it seeks to export through the mission are either produced in
the United States, or, if not, marketed under the name of a U.S. firm
and have at least fifty-one percent U.S. content.
Selection Criteria
Suitability of the applicant's products or services to the
Indian market and targeted sector
Applicant's potential for business in India, including
likelihood of U.S. exports resulting from the mission
Consistency of the applicant's goals and objectives with
the stated scope of the mission
Past or current export activity or ability to initiate and
sustain immediate export activities
Any partisan political activities (including political
contributions) of an applicant are entirely irrelevant to the selection
process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission
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calendar (http://www.ita.doc.gov/doctm/tmcal.html) and other Internet
Web sites, press releases to general and trade media, direct mail,
notices by industry trade associations and other multiplier groups, and
publicity at industry meetings, symposia, conferences, and trade shows.
CS India will work in conjunction with the CS Pacific South Network,
which will serve as a key facilitator in establishing strong commercial
ties to the U.S. solar industry nationwide. Recruitment for the mission
will begin immediately and conclude no later than December 31, 2009.
Applications received after December 31, 2009, will be considered only
if space and scheduling constraints permit.
Contacts
U.S. Commercial Service India:
Ms. Preetha Nair, U.S. Commercial Service, New Delhi, Tel: 91-11-
23472347, E-mail: [email protected],
Mr. Vaidyanathan Purushothaman, U.S. Commercial Service, Chennai, Tel:
91-44-28574031, E-mail: [email protected].
Mr. P. Srinivas, U.S. Commercial Service, Mumbai, Tel: 91-22-22652511,
E-mail: [email protected].
U.S. Commercial Service Export Assistance Centers:
Ms. Cynthia Torres, U.S. Commercial Service, Coachella Valley (Indio),
Tel: 760-342-1310, E-mail: [email protected].
Mr. Richard Swanson, Pacific South Network Director, Newport Beach,
Tel: 949-660-1688, ext. 153, E-mail: [email protected].
Sean Timmins,
Global Trade Programs, Commercial Service Trade Missions Program.
[FR Doc. E9-29557 Filed 12-10-09; 8:45 am]
BILLING CODE 3510-FP-P