November 1, 2005
News Release 05-130
Inv. No. 332-462
Contact: Peg OLaughlin, 202-205-1819
ITC ISSUES REPORT ON RENEWABLE ENERGY SERVICES
Few barriers exist in the market for renewable energy services, reports the
U.S. International Trade Commission (ITC) in its study Renewable Energy
Services: An Examination of U.S. and Foreign Markets.
The ITC, an independent, nonpartisan, factfinding federal agency, conducted
the investigation at the request of the U.S. Trade Representative. The
report provides an overview of foreign and domestic markets for renewable
energy services; examines trade and investment in renewable energy services
markets, including barriers affecting such trade and investment; and
discusses existing regulatory practices. Highlights of the report follow.
- The United States is the worlds largest market for biomass and
geothermal power, while Germany leads the market for wind power, Japan
for solar power, and France for ocean power.
- Government incentive measures designed to promote renewable energy,
including those that stem from national obligations under international
environmental agreements (such as the Kyoto Protocol), have played a
leading role in the development of certain renewable energy sectors.
Other factors such as technological advances that have improved the
cost-competitiveness of renewable energy technologies, and concerns
regarding the environment and energy security have also contributed to
the growth of certain segments of this industry.
- Industry sources estimate that the global markets for services
incidental to wind, solar, and biomass power production totaled
approximately $3.8 billion, $2.8 billion, and $1.7 billion,
respectively, in 2004. In that year, Germany was the largest
market for wind power services, followed by the United States and Spain.
Leading country markets for solar power services included Japan, Germany,
and the United States. In the biomass segment, Finland led the worldwide
services market in 2004, followed most closely by the United States.
- There are few barriers that specifically affect trade and investment in the
wind, solar, biomass, geothermal, or ocean energy production or services
sectors. However, regulatory barriers that apply to incidental sectors, such
as professional licensing provisions that apply in the consulting and
engineering industries, as well as investment measures, landuse provisions,
and limitations on movement of persons that apply to trade and investment in
all sectors, may affect trade and investment in the renewable energy
- Equipment used in the renewable energy industry is subject to a wide range
of tariffs in different countries, though such tariffs reportedly are not a
significant impediment to trade.
Renewable Energy Services: An Examination of U.S. and Foreign Markets
(Investigation No. 332-462, USITC publication 3805, October 2005) will be
posted in the Publications area of the ITC Internet site at www.usitc.gov. A
printed or CD-ROM copy may be requested by calling 202-205-1809 or by
writing the office of the Secretary, U.S. International Trade Commission,
500 E Street, SW, Washington, DC, 20436. Requests may also be made by fax
ITC general factfinding investigations, such as this one, cover matters
related to tariffs or trade and are generally conducted at the request of
the U.S. Trade Representatives, the Senate Committee on Finance, or the
House Committee on Ways and Means. The resulting reports convey the
Commissions objective findings and independent analyses on the subject
investigated. The Commission makes no recommendations on policy or other
matters in its general factfinding reports. Upon completion of each
investigation, the ITC submits its finding and analyses to the requestor.
General factfinding investigations reports are subsequently released to the
public, unless they are classified by the requestor for national security
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