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Trends, Challenges and Opportunities Despite the growing number of renewable energy supply products that can generate new income and enhance trade opportunities, only a few countries have so far benefited to a significant extent. China, Chinese Taipeh, India, Republic of Korea, Malaysia and Singapore account for over 90 per cent of developing countries’ exports in renewable energy supply technology. While exports from Brazil, Mexico, Philippines, South Africa, Turkey and Vietnam are increasing, exports from most other developing countries are minimal or absent (UNCTAD 2011b). Nevertheless, there are signs that more developing countries are acquiring the capacity for manufacturing renewable energy supply products (see Box 12). Box 12. Solar Panels manufactured in Mongolia exported to Japan The Mongolian company Sankou Solar Mongolia LLC was officially established on 1 January 2011. It manufactures solar panels according to international standards, such as IEC 61215 (Crystalline silicon terrestrial photovoltaic (PV) modules), IEC 61730 (Photovoltaic (PV) module safety qualification), and ISO 9001 (quality management systems). On 27 November 2012, Sankou began exporting PV modules to Japan. Since then, Sankou has exported 427 kW in PV modules to Japan and received a total order for 2 MWs of solar module technology. In the future, Sankou plans to increase its manufacturing capacity so as to expand exports abroad to Japan as well as the EU and other countries of the world. Source: Interview with Sankou Solar Mongolia LLC, 11 March 2013 Furthermore, some countries in the Middle East and North Africa (MENA) may also have opportunities to enter regional and world markets in renewable energy supply products. The German Development Institute’s report on Egypt, for example, states that: “As indicated by the large increases in global trade in the last few years, there is profit to be made in exporting wind turbines and components ... [t]his suggests that if Egypt could develop a comparative advantage in wind energy manufacturing, it could service the regional emerging markets; Egypt’s wind industry could play an important role in the MENA market (and for regions in Africa), where manufacturing capabilities for wind energy components are limited” (Vidican 2012). However, MENA states are, as yet, largely dependent on technology and knowledge transfers from developed states. They will need to build up domestic industrial capabilities for renewable energy technology in order to play a more significant and autonomous role in international renewable energy trade. In any case, it is important to note that renewable energy supply products and services are a heterogeneous group. For example, biofuels, solar thermal and geothermal are all lower-tech technologies or lower-tech energy sources in which several developing countries have either existing expertise, or good chances of developing competitive export streams (Cosbey 2011). Box 13 describes the potential for exports of solar- thermal water heaters by developing countries. Box 13. Potential for exports of solar-thermal water heaters There are hundreds of manufacturers of solar-thermal water heaters in the world, including in Argentina, Armenia, Barbados, Brazil, Bulgaria, Chile, China, Cuba, Dominica, Egypt, India, Indonesia, Iran, Jordan, Libya, Lithuania, Macedonia, Malaysia, Mexico, Morocco, Nepal, Pakistan, Philippines, Saudi Arabia, Sri Lanka, Thailand, and the United Arab Emirates. There is also potential to export these solar-thermal water heaters to other markets that demand such renewable energy supply products. Libya, for example, has planned the development of a joint venture with local and foreign investors for the manufacture of solar water heaters (40,000 units/ year), for local and export markets (UNECA 2012). Penetration of solar thermal water heaters into some markets, however, is hampered by subsidised prices for electricity or natural gas, the main energy sources used for water-heating appliances. Source: Steenblik 2006 235 Renewable EnergyPDF Image | Renewable Energy
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