Renewable energy is a sector that is notoriously difficult to predict. The rapidly changing technology and policy environment can make it challenging for businesses to explore new markets and create an export strategy.
Here at ITA, we are committed to supporting renewable energy exporters by providing the most timely, accurate, and valuable information necessary to compete effectively in international markets. We put together a new report â€“ the 2014 Renewable Energy Top Markets for U.S. Exports Report â€“ to help exporters determine which markets may yield the most near-term renewable energy opportunities.
Exporters can find information on potential U.S. exports of goods related to renewable energy by both market and sector through 2015. Information is included for the wind, solar, geothermal, hydro, ethanol, and wood pellet (biomass) sectors. Please note that the analysis does not describe investment opportunities or even the fastest growing markets â€“ instead, it shows where ITA believes most U.S. renewable energy exports will go in the near-term.
To undertake the analysis, we gathered data on 75 markets, including:
- Projected capacity installations by market and by subsector;
- The projected capital cost of a marketâ€™s projected capacity growth;
- Each marketâ€™s projected consumption of ethanol and biomass pellets;
- Expected import market size based on historical imports, manufacturing capacity, etc.; and
- Projected U.S. market share in each market.
The report highlights some interesting facts â€“ some expected and others quite informative â€“ to exporters looking to develop an effective renewable energy export strategy:
- Ten markets will account for nearly three-fourths of U.S. renewable energy exports over the next two years;
- The wind sector will overtake the solar sector as the leading U.S. exporter of renewable energy technologies during that time period; and
- Renewable energy markets in Latin America generally support a greater market share for U.S. exporters than elsewhere around the world, but often are smaller and less developed.
Company-specific priorities vary, so we encourage exporters to visit their nearest U.S. Export Assistance Center (USEAC) to further develop or refine their export strategy. Our USEACs can also put exporters in touch with ITAâ€™s Foreign Commercial Service staff at 72 different embassies and consulates around the world for the most up-to-date and relevant market information.
For more information on exporting renewable energy, we recommend browsing the Renewable Energy & Energy Efficiency exporters portal, and sign up for the monthly e-newsletter, both of which contain a myriad of resources from ITA and across the federal government.
Please also join us on March 25 at 2 p.m. for a Twitter Town Hall (#REtopmarkets). Weâ€™ll highlight key findings and answer questions about the Top Markets report. We are always looking to improve our programs and services, so we would also like to hear your ideas or suggestions on how to make the next Top Markets report more useful and effective. We look forward to chatting with you!
Cora Dickson and Ryan Mulholland are Renewable Energy Analysts in ITAâ€™s Office of Energy and Environmental Industries. This article originally appeared on Tradeology, the ITA's blog, and was republished here with permission.