The Renewable Energy Industry in CARIFORUM Countries

COUNTRY INDICATOR ANALYSIS

4.2.8 | FOREIGN IMPACTS

a)

Outside of IPP, the influence of foreign firms on the regional RE installation market is minimal. The limited activity has been generally focused on those countries which exhibit favourable regulatory environments. To date, there have been 1 to 2 registered companies per country which install PV systems in Barbados, Bahamas, Saint Lucia, Antigua, Jamaica and Dominica. These companies do not bring any special expertise or new technologies since the local RECs have the requisite skills to service the market needs based on the national technology preferences. It is not common for international companies which are not registered locally to pursue residential work. Despite The Bahamas’ unfavourable regulatory environment, there is one foreign REC established there with a sister company in Jamaica. Competition in the domestic markets therefore remains fair with no competitive advantage for these foreign companies. If any advantage exists, it would be towards local companies with a sustained presence. Larger energy companies not registered in the region tend to pursue RE and EE services for governments, regional andmultilateral institutions; consultancies and studies. This happens because such contracts are advertised internationally and are often funded by the countries, regions of some of the same foreign firms. E.g. Canada, USA and Europe. The tender processes are generally open but a large percentage of this work is normally contracted to the foreign companies. Some local companies complain of nepotism but there is no way to substantiate this claim. Foreign companies appear to have a competitive edge. Admittedly, they often have more qualified resources and more experience. However, the need for capacity building in the region makes a case for those RECs which are qualified to have greater access to opportunities, particularly in their own countries. This may be negotiated with donor agencies and could include engagement or regional partnerships in the bidding process to help to develop regional capabilities. Haiti is the only country included in this study which manufactures RE equipment; PV panels. All other countries must import all their RE products. Except for Dominican Republic which shares a border with Haiti, all other countries import their PV panels from an international supplier since regional maritime connections are inadequate to facilitate regional trade; assuming prices are competitive. In the case of SWHs, none of the countries truly manufacture. Barbados, Suriname and Dominica lead in the assembly of these products and import all the major required components. E.g. tanks, glass, copper and Alu-Zinc. Some EE products are commonly sold in hardware retail stores. Exact ownership was not confirmed during this study but there is a combination of local and international ownership. Since no manufacturing occurs locally, they all import their goods and operate under the same retail framework.

b)

c)

d)

e)

A minimum amount of RE and EE equipment is retailed since RECs import their own supplies to implement their contracts and not to supply the local market.

The Renewable Energy Industry in CARIFORUM Countries

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