The Renewable Energy Industry in CARIFORUM Countries

COUNTRY INDICATOR ANALYSIS

The RECs are positioned in the value chain according to the product(s) and service(s) they offer in the RE market. The single exception to the model below is Haiti, which does manufacture PV panels.

OVERSEAS SUPPLIERS & MANUFACTURERS

EE DESIGN & INSTALL

SWH DESIGN & INSTALL

CONSULTING SERVICES

ENERGY AUDITING

RE DESIGN & INSTALL

RE & EE RETAIL

ESCO SERVICES

LOCAL & OVERSEAS CUSTOMERS & INSTITUTIONS

Figure 4.10 | RE & EE Value Chain in the Region

Most RECs function in multiple areas in the RE industry. However, it is important to understand a few key dynamics about the operations of these firms.

a)

e)

Firms which function in the RE space do not normally function in the EE space. The reverse is also true, with few exceptions. Firms which offer consulting services and/or energy audits only, do not depend on any suppliers or manufacturers in order to deliver their services to their local or overseas clients. Firms which deliver RE and EE installation services depend on the importation of products and other materials in order to complete the job for their local clients. For SWH company exports, most of their assembly occurs locally before shipping to the overseas client where the installation is completed.

For other RE and EE exports, full assembly and installation takes place at the overseas client.

RECs generally order equipment on demand. Consequently, there is limited inventory locally. This may stem from limited local demand linked to the RE industry environment and the limited financial capacity of firms due to their relatively small size (12 on average). Consequently, clients may experience some delays in their installation. Where demand is extremely low, relationships with overseas suppliers tend to be less established, creating a small market for retailers who may act as local suppliers. This opportunity is untapped now but represents a real opportunity pending improvements in the RE industries in those countries where low demand exists. These retailers are normally established companies with established supply chains for other products and should therefore have the infrastructure

b)

c)

d)

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The Renewable Energy Industry in CARIFORUM Countries