[Federal Register Volume 79, Number 96 (Monday, May 19, 2014)]
[Notices]
[Pages 28683-28685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-11472]


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 DEPARTMENT OF COMMERCE

International Trade Administration


Renewable Energy and Energy Efficiency Trade Policy Mission to 
Peru

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The U.S. Department of Commerce's International Trade 
Administration (ITA) is organizing a Renewable Energy and Energy 
Efficiency (RE&EE) Trade Policy Mission to Lima, Peru for November 12-
13, 2014. The mission is designed to be led by a senior Department of 
Commerce official, and will focus on: (1) Creating a policy environment 
conducive to growth in Peru's RE&EE market; (2) introducing U.S. RE&EE 
exporters to key Peruvian Government officials; and (3) supporting the 
United Nations Framework Convention on Climate Change annual meeting 
(COP-20) hosted by Peru in December 2014.
    The RE&EE trade policy mission will promote the export 
competitiveness of U.S. wind, solar, geothermal, biomass, hydropower, 
waste-to-energy, smart grid, and energy efficiency industries; and will 
demonstrate U.S. Government support for Peru's strong renewable energy 
and energy efficiency goals. The mission supports ITA's commitment in 
the Renewable Energy and Energy Efficiency Export Initiative (RE4I) to 
significantly increase U.S. RE&EE exports through the development and 
creation of new export opportunities.
    Additionally, the mission supports the Administration's Look South 
initiative, which encourages companies to explore opportunities in the 
United States' 11 free trade agreement partner countries in Latin 
America. Renewable energy is in high demand throughout these growing 
and market liberalizing countries. Export.gov/looksouth includes ``Best 
Prospect'' market snapshots on renewable energy opportunities in six 
Look South countries, including Peru.

Commercial Setting

    For the past decade, Peru has led South America as the country with 
the highest average annual growth in GDP (6.4%) and lowest inflation 
(2.9%). In fact, Peru's credit rating was increased by Fitch Ratings to 
BBB+, making it the highest-ranked South American country after Chile. 
Much of the country's growth has been a result of an expansion in 
energy-intensive mining, which has caused Peru's energy demand to 
increase substantially. As a result, Peru has the fourth highest energy 
demand of any Latin American country, a challenge that is focusing new 
investment--both international and domestic--on the development of 
stable, domestically-produced, renewable energy resources.
    To promote renewable energy development, Peru now offers several 
policy incentives, including priority dispatch for renewable 
electricity, accelerated depreciation of up to 20 percent for 
investments in machinery or equipment that support renewable energy 
deployment, and technology-specific auctions. The country also features 
a 5 percent clean energy generation target and a biofuel blending 
mandate of 7.8 percent. Peru's Ministry

[[Page 28684]]

of Energy and Mines (MEM) is currently considering a new target, as it 
is charged with updating the national renewable energy target every 
five years.
    To date, the technology-specific auctions have been the key driver 
of renewable energy deployment in Peru, promoting the development of 
several wind, solar, small hydro and biomass projects across the 
country. Introduced in 2008, the auctions are conducted by the MEM and 
award contracts to developers that offer the lowest tariff per kilowatt 
(kWh) for a given technology. Prices are guaranteed for 20 years, 
providing a stable investment climate--the result of which has been 
considerable international investor interest in the market. In fact, 
Peru has held four renewable auctions, including one for off-grid solar 
capacity. In the on-grid tenders, Peru has awarded power contracts to 
58 projects for a total of 882MW from biomass, small hydro, solar and 
wind sources. According to its regulations, the Peruvian Government 
evaluates the need for additional auctions every two years.
    Peru's liberalized power market and strong policy regime led to 
over $1 billion of cumulative clean energy investment in 2012, with 
additional investment expected well into the future. Today, Peru 
generates 52 percent of its electricity from renewable sources--mostly 
from large hydro (43 percent), biomass and waste, solar and small 
hydro. Natural gas, oil and diesel account for the rest, with several 
large mining operations producing their own power using expensive 
diesel generators.
    ITA expects export opportunities for U.S. companies in all six 
RE&EE subsectors, including wind, solar, geothermal, biomass, 
hydropower, and renewable fuels; as well as in the smart grid and 
traditional energy efficiency industries. Peru lacks complete supply 
chains in each of these sectors, indicating that any RE&EE development 
will result in imports, supporting opportunities for U.S. exporters 
that should be well positioned to compete effectively in the market. In 
particular, exporters that manufacture bearings, gearboxes, turbines, 
and blades for the wind industry, as well as wafers, cells, modules, 
and invertors for the solar industry should all find opportunities. 
Opportunities also exist for geothermal service exporters, including 
firms capable of providing exploration, production, and resource 
confirmation expertise; as well as for companies capable of supplying 
equipment or services to support ethanol or energy-from-waste 
development.

Mission Goals

    The RE&EE trade policy mission will facilitate the development of 
an export market by supporting the establishment of policy incentives 
in Peru's emerging RE&EE market. The mission will occur at an opportune 
time, as Peruvian policy makers seek to establish policy environment to 
support RE&EE investment prior to the COP-20 meetings in December.
    The delegation will have the unique opportunity to meet government 
officials, discuss policy concerns, and suggest creative solutions to 
Peru's energy challenges. Topics relevant to Peru's RE&EE expansion 
include:
     Rural electrification: Fourteen percent of the Peruvian 
population lacks access to reliable electricity. The Peruvian 
Government has announced plans to boost the electrification rate to 95 
percent by 2015 through the deployment of solar technologies.
     Electricity prices: The Peruvian Government keeps 
electricity rates artificially low through direct subsidies which limit 
opportunities for efficiency and make renewable energy investment 
difficult.
     Financing: Local financial institutions appear unwilling 
to invest in renewable energy or energy efficiency projects, leaving 
the market to be sustained by international investors.
     Biofuels: Peru has struggled to meet its biofuel blending 
target, established in 2007, which mandates that 7.8% ethanol be 
blended into the country's gasoline stock, due to limited biofuel 
production and a lack of operations and maintenance supplier.

Mission Scenario

    The Renewable Energy and Energy Efficiency Trade Policy Mission 
will provide several opportunities for participants to discuss policy 
challenges with Peruvian Government officials. During the trade policy 
mission, participants will: (1) Receive market briefings on the status 
of the renewable energy market in Peru, including an assessment of 
upcoming opportunities; (2) receive a Market Assessment Report on 
opportunities in Peru's renewable energy market; (3) be introduced to 
key Peruvian government and regulatory officials during meetings to 
discuss policies related to renewable energy and energy efficiency; and 
(4) attend a networking reception with Peruvian business persons and 
government officials organized by the U.S. Foreign and Commercial 
Service.

                          Proposed Timetable *
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             Date                      Day                Activity
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                                                   Arrive in Lima, Peru
November 11...................  Tuesday..........   Welcome
                                                    reception (in the
                                                    evening).
                                Lima, Peru          Market
                                                    briefing on RE&EE
                                                    industry in Peru for
                                                    mission participants
                                                    by US&FCS Lima and
                                                    Embassy staff.
November 12...................  Wednesday........   Meetings
                                Lima, Peru.......   with key Government
                                                    officials and
                                                    stakeholders.
November 13...................  Thursday.........   Seminar or
                                                    Forum on RE&EE
                                                    development in Peru
                                                    hosted by AmCham
                                                    Peru; or additional
                                                    group meetings.
                                Lima, Peru.......   Networking
                                                    reception at
                                                    Ambassador's
                                                    Residence.
                                                    Mission
                                                    ends.
November 14...................  Friday...........  Depart Lima, Peru
                                Lima, Peru.......   [OPTIONAL]
                                                    Site visits for
                                                    interested
                                                    companies.
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* Note: The final schedule will depend on the availability of local
  government and business officials, specific goals of the mission
  participants, and air travel schedules.

Participation Requirements

    All parties interested in participating in the trade policy mission 
must complete and submit an application package for consideration by 
the Department of Commerce. All applicants will be evaluated based on 
their ability to meet certain conditions and best satisfy the selection 
criteria as outlined below. A minimum of 10 and maximum of 25 companies 
will be selected to participate in the mission

[[Page 28685]]

from the applicant pool. U.S. companies already doing business in Peru 
as well as U.S. companies seeking to enter to the Peruvian market for 
the first time may apply.

Fees and Expenses

    After a company or organization has been selected to participate on 
the mission, a payment to the Department of Commerce of a participation 
fee is required. The participation fee for the Trade Mission will be 
$1,300 for a small or medium-sized firm (SME),\1\ and $2,300 for large 
firms. The fee for each additional firm representative (large firm or 
SME/trade organization) is $500. Expenses for travel, lodging, meals, 
and incidentals will be the responsibility of each mission participant. 
Delegation members will be able to take advantage of U.S. Embassy rates 
for hotel rooms.
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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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Exclusions

    The mission fee does not include any personal travel expenses such 
as lodging, most meals, local ground transportation, except as stated 
in the proposed timetable, or air transportation to and from the United 
States. Business visas are not required.

Conditions for Participation

    An applicant must submit a completed mission application signed by 
a company officer, together with supplemental application materials, 
including adequate information on the company's products and/or 
services, primary market objectives, and goals for participation. Note: 
Each applicant must also certify that the products or services it seeks 
to export through the mission are either produced in the United States, 
or, if not, are marketed under the name of a U.S. firm and have at 
least 51 percent U.S. content of the value of the finished product or 
service. If the Department of Commerce receives an incomplete 
application, the Department may reject the application, request 
additional information, or take the lack of information into account 
when evaluating the applications.

Selection Criteria for Participation

     Suitability of the company's products or services to the 
market;
     Applicant's potential for business in Peru and in the 
region, including likelihood of exports resulting from the mission;
     Consistency of the applicant's goals and objectives with 
the stated scope of the mission.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process. Diversity of company size and 
location may also be considered during the review process.

Timeline 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 calendar (http://export.gov/trademissions) and 
other Internet Web sites, including the Renewable Energy & Energy 
Efficiency Exporters Portal (www.export.gov/reee), 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. Recruitment for the 
mission will begin immediately and conclude no later than September 15, 
2014. Applications received after September 15, 2014 will be considered 
only if space and scheduling permit.

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              Contacts
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Ryan Mulholland, Senior Renewable    Ricardo Pela[aacute]ez, Commercial
 Energy Trade Specialist, Office of   Counselor, U.S. Embassy--Luma,
 Energy and Environmental             Peru, Phone: +(51) 1-618-2440,
 Industries, Phone: (202) 482-4693,   Email: [email protected].
 Email: [email protected].
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Edward A. O'Malley,
Director, Office of Energy and Environmental Industries.
[FR Doc. 2014-11472 Filed 5-16-14; 8:45 am]
BILLING CODE 3510-DR-P