[Federal Register Volume 77, Number 40 (Wednesday, February 29, 2012)]
[Notices]
[Pages 12241-12243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4840]


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DEPARTMENT OF COMMERCE

International Trade Administration


Smart Grid Trade Mission to the United Kingdom; London, United 
Kingdom, October 15-17, 2012

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce International Trade 
Administration's (ITA) U.S. and Foreign Commercial Service (USFCS) in 
London is organizing a Smart Grid Trade Mission to the United Kingdom, 
October 15-17, 2012.
    The Smart Grid Trade Mission offers a timely and cost-effective 
means for U.S. firms to engage with key stakeholders and to enter the 
promising UK market for smart grid equipment, technology and services. 
Target sectors holding high potential for U.S exporters include: smart 
meters and advanced metering infrastructure; communication and data 
management software and services; grid optimization technologies; 
demand response and control systems; cyber security software and 
services; transmission and distribution equipment; automation 
technologies; and consumer engagement platforms and services.
    Advancing President Obama's goal of positioning the United States 
as the leading exporter of clean energy technologies, the mission will 
support the Renewable Energy and Energy Efficiency Export Initiative's 
(RE4I) goals by promoting export opportunities for innovative U.S. 
companies active in the smart grid sector. With a focus on connecting 
U.S. companies with the major players in the UK electricity sector, 
this mission will provide critical market information and will help 
participants establish business and government contacts who are 
involved in smart grid and energy efficiency projects in the United 
Kingdom. The three-day agenda will include meetings with high-level 
national government officials and industry leaders; briefings on the UK 
market and the wider European Union market; site visits; seminars; and 
networking opportunities in and around the London area.
    The delegation will be comprised of at least 15 U.S. firms and a 
maximum of 25 U.S. firms representing a cross-section of U.S. 
industries that have developed products and services for the smart 
grid. The mission will also be open to representatives of U.S. trade 
associations in the targeted industries with a commercial interest in 
the United Kingdom.

Commercial Setting

    According to the ``Doing Business 2011'' report from the World 
Bank, the United Kingdom is the best place to do business in the EU and 
G8 countries: the report ranks the United Kingdom first in Europe and 
fourth in the world for ease of doing business.
    The United Kingdom has the seventh-largest economy in the world and 
is a major international trading power. Highly developed, 
sophisticated, and diversified, the UK market is the single largest 
export market for U.S. services exports and the fifth largest in the 
world for U.S. goods exports. With few trade barriers, the United 
Kingdom is in fact the entry market into the EU for more than 40,000 
U.S. exporters.
    Annual U.S. exports to the United Kingdom of both goods and 
services are valued at more than $100 billion. The U.S.-UK investment 
relationship is the largest in the world with a cumulative bilateral 
stock in direct investment valued at over $925 billion, creating over 
two million jobs, about one million in each country, to manage and 
drive this investment.
    Over 7,500 U.S. firms maintain a presence in the United Kingdom, 
many of which serve as regional headquarters for companies covering 
Europe, the Middle East, and Africa. Furthermore, London is a major 
international financial hub. Ranked by the Economist Intelligence Unit 
to be ahead of other major European economies in the global digital 
economy index, the United Kingdom offers world class Information and 
Communication Technology infrastructure.
    The UK government has committed to reducing the country's carbon 
emissions by 34% of 1990 levels by 2020 and by 80% of 1990 levels by 
2050. Power generation is a major source of carbon emissions, with 74% 
of power generated in the United Kingdom coming from fossil fuels. As 
the government seeks to reduce dependency on fossil fuels, it plans to 
refurbish its existing electricity infrastructure and establish a smart 
grid.
    Consequently, over $300 billion of investment is needed over the 
next ten years to replace older power plants and upgrade the grid--
twice the rate of investment seen in the previous decade. The United 
Kingdom's determination to become a low carbon economy should create 
many opportunities for innovative U.S. companies to supply ``green'' 
solutions to help the United Kingdom supply sustainable, reliable, and 
secure, low carbon energy sources while providing the technologies and 
services that enable energy efficiency gains for electricity consumers.
    The smart grid sector is developing rapidly in the European Union. 
The United Kingdom is at the forefront, with major U.S. companies 
already providing smart grid solutions for electric utilities in the 
region. The challenge of efficiently transmitting and distributing ever 
increasing amounts of electricity from intermittent and geographically 
spread renewable sources, like wind turbines and solar panels, creates 
a need for the utility and related industries to modernize and reinvent 
the way electricity is transmitted, distributed and consumed.
    To achieve this, electricity utilities in the United Kingdom will 
have to invest in information and communication technologies, as well 
as enhanced system monitoring and intelligent controls that will be 
needed to securely manage a much more complex system, while meeting the 
demand for energy with the optimum level of generation and network 
capacity.
    In 2008, the UK Government announced that gas and electricity smart 
meters would be rolled out by energy suppliers to every home and most 
small businesses in Britain by the end of 2020. The mass roll-out of 
smart meters is expected to begin in 2014. Some 54 million gas and 
electricity meters will need to be replaced over 10 years at an 
expected cost of $18 billion.
    To stimulate innovation in the sector, the Government has launched 
a $10 million UK Smart Grid Demonstration Fund for small projects and 
has made $825 million available through the Low Carbon Networks Fund 
for larger scale trials. This has led to a number of UK smart 
technology pilot projects that are already underway or in the planning 
stages. In addition to government-led smart grid initiatives, private 
sector utilities are expected to invest more than $65 billion in the 
upgrade and expansion of the UK's transmission and distribution 
networks.
    Current studies indicate that 60% of UK companies in the energy 
market plan to invest in smart grids over the next three years, with a 
quarter of these firms already having committed money. This level of 
investment by government and energy companies signals the potential 
commercial opportunities in the UK market. It is not surprising,

[[Page 12242]]

therefore, that the sector has attracted interest from a wide range of 
industry players--from small startups and SMEs to global corporations.
    The market is expected to grow from $380 million in 2010 to $4.5 
billion in 2015. An early entry into the UK smart grid industry could 
help technology, equipment and specialist service companies to become 
leading players in the global energy services market. Pilot projects 
undertaken in the UK market can serve as a benchmark to provide U.S. 
companies with early adopter opportunities in other European countries 
and in the global market.
    Emerging opportunities in the UK smart grid market encompass a 
range of technology and service segments associated with electricity 
transmission and distribution, energy data management, and energy 
efficiency applications, such as:
    <bullet> Smart meters and advanced metering infrastructure;
    <bullet> Meter data management software and systems;
    <bullet> Demand response control systems and services;
    <bullet> Grid optimization systems and technologies;
    <bullet> Energy management systems for distributed generation and 
storage;
    <bullet> Utility cyber security services;
    <bullet> Home area networking technologies;
    <bullet> Consumer electronic smart devices, applications, and 
energy efficiency software and services; and
    <bullet> Home and building energy management programs and marketing 
campaigns.
    Additionally, opportunities in the UK smart grid sector will emerge 
for firms specializing in the provision of utility information 
management systems, billing software and services, cyber security 
services, and other utility back-end information technology solutions.
    In April 2012, the United Kingdom will host the 2012 Clean Energy 
Ministerial, an important platform developed under the auspices of the 
United Nations Framework Convention on Climate Change to advance 
international and public-private collaboration on the adoption and 
deployment of clean energy technologies worldwide. One of the Clean 
Energy Ministerial activities is the International Smart Grid Action 
Network (ISGAN), a mechanism through which multinational stakeholders 
can collaborate on accelerating the development and deployment of 
smarter electric grids around the world. ISGAN aims to improve the 
understanding of smart grid technologies, practices, and systems and to 
promote adoption of related enabling government policies. U.S. 
Secretary of Energy Steven Chu will co-host the 2012 Clean Energy 
Ministerial.

Mission Goals

    The mission will help U.S. companies increase their export 
potential to the United Kingdom by identifying profitable opportunities 
in the UK smart grid and electricity markets. As such, the mission will 
focus on helping U.S. companies obtain market information, establish 
business and government contacts, solidify business strategies, and/or 
advance specific projects.
    The mission's goals include:
    <bullet> Facilitating first-hand market exposure and access to 
government decision makers and key private-sector industry contacts, 
including potential trading partners;
    <bullet> Promoting the U.S. green economy by connecting 
representatives of U.S. companies focused on low carbon technologies 
with potential trading partners;
    <bullet> Helping companies gain valuable international business 
experience in the rapidly growing smart grid market; and
    <bullet> Helping U.S. companies strengthen their engagement in the 
worldwide marketplace, leading to increased exports and, in turn, job 
creation.

Mission Scenario

    Participants will attend country briefings, seminars and meetings 
with government decision makers and key private-sector industry 
contacts, including potential trading partners. Participants will also 
receive briefing on the European Union-wide perspective on smart grids.
    Networking events will provide mission participants with further 
opportunities to speak with local business and government 
representatives, as well as with business executives of major U.S. 
companies already established in the United Kingdom.
    The precise agenda will depend upon the availability of local 
government and private sector officials, as well as on the specific 
goals and makeup of the mission participants.
    The U.S Commercial Service in London stands ready to assist the 
participants.

Proposed Timetable

Monday, October 15, 2012

    <bullet> Country briefing by U.S. Embassy staff on programs and 
opportunities in the UK and EU smart grid sector.
    <bullet> Ice-breaker reception at the Embassy of the United States 
of America, London.

Tuesday, October 16, 2012

    <bullet> Seminar on UK and European smart grid markets. The seminar 
will provide market information to identify profitable opportunities. 
Speakers will include government officials, trade associations, senior 
industry representatives, and experts on the various aspects of smart 
grids, such as smart meters, advanced communications and information 
management systems, demand side management and storage, cyber security, 
transmission and distribution, and electric energy storage 
technologies. The seminar will be followed by a luncheon reception.
    <bullet> Business meetings with utilities, transmission and 
distribution networks, major energy and technology companies.
    <bullet> Networking reception for business and government contacts.

Wednesday, October 17, 2012

    <bullet> Site visits and business meetings.
    <bullet> Networking business reception (TBC).

Participation Requirements

    All parties interested in participating in the trade mission must 
complete and submit an application package for consideration by the 
Department of Commerce. All applicants will be evaluated, on a rolling 
basis, on their ability to meet certain conditions and best satisfy the 
selection criteria as outlined below. A minimum of 15 and maximum of 25 
companies will be selected to participate in the mission from the 
applicant pool.

Fees and Expenses

    After a company or organization has been selected to participate on 
the mission, a payment to the Department of Commerce in the form of a 
participation fee is required. The participation fee for the Trade 
Mission will be $1,202.00 for a small or medium-sized firm (SME),\1\ 
and $2,350.00 for large firms. The fee for each additional firm 
representative (large firm or SME/trade organization) is $600. Expenses 
for travel, lodging, meals, and incidentals will be the responsibility 
of each mission participant. Delegation members will be

[[Page 12243]]

able to take advantage of U.S. Embassy rates for hotel rooms.
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    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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Conditions For Participation

    Targeted mission participants are U.S. companies providing smart 
grid equipment, technology and services that have an interest in 
learning more about the UK and European markets. Target sectors holding 
high potential for U.S. exporters include: Smart meters and advanced 
metering infrastructure; communication and data management software and 
services; grid optimization technologies; demand response and control 
systems; cyber security software and services; transmission and 
distribution equipment; automation technologies; and consumer 
engagement platforms and services.

Selection Criteria for Participation

    The following criteria will be evaluated in selecting participants:
    <bullet> Relevance of the company's business to the mission goals;
    <bullet> Market potential for business in the UK and European 
markets;
    <bullet> Provision of adequate information on the company's 
products and/or services, and communication of the company's primary 
objectives; and
    <bullet> Timeliness of the company's completed application and 
participation agreement signed by a company officer.
    Diversity of company size and location may also be considered 
during the review process. Referrals from political organizations and 
any documents containing references to partisan political activities 
(including political contributions) will be removed from an applicant's 
submission and not considered during the selection process.

Selection Timeline

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission calendar (http://export.gov/trademissions) and 
other Internet Web sites, press releases to general and trade media, 
direct mail, notices by industry trade associations and other 
multiplier groups, and publicity at industry meetings, symposia, 
conferences, and trade shows. Recruitment for the mission will begin 
immediately and conclude no later than August 17, 2012. The U.S. 
Department of Commerce will review applications and make selection 
decisions on a rolling basis beginning in February, 2012. Applications 
received after August 17, 2012 will be considered only if space and 
scheduling constraints permit.

Contacts

    Claudia Colombo (BSc Hons, MRes, Ph.D.), Energy Commercial 
Specialist, U.S. Department of Commerce, U.S. Embassy, 24 Grosvenor 
Square, London W1A 1AE, UK, Tel: +44 (0)20 7894 0443, Fax: +44 (0)20 
7894 0020, Email: <a href="/cdn-cgi/l/email-protection#03606f6276676a622d606c6f6c6e616c4377716267662d646c75"><span class="__cf_email__" data-cfemail="50333c31253439317e333f3c3f3d323f1024223134357e373f26">[email protected]</span></a>.

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-4840 Filed 2-28-12; 8:45 am]
BILLING CODE 3510-FP-P


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