Rethinking local content requirements
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Rethinking local content requirements. Objectives. To re-frame Local Content Requirements from a social acceptance perspective …look again at Local Content Requirements …examine the criticisms - and the policy context …identify why LCR are so prevalent in the wind industry

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Rethinking local content requirements

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Rethinking local content requirements

Rethinking local content requirements


Objectives

Objectives

  • To re-frame Local Content Requirements from a social acceptance perspective

  • …look again at Local Content Requirements

  • …examine the criticisms - and the policy context

  • …identify why LCR are so prevalent in the wind industry

  • …consider the hypothesis:

“The ability to implement ‘protectionist’ policies can unlock wind deployment which may otherwise not have occurred”


What are local content requirements lcr

What are Local Content Requirements (LCR)?

  • “Buy Local”

X

Imports

Imports

vs


What have lcrs got to do with social acceptance

What have LCRs got to do with social acceptance?

IEA Task 28 identifies three dimensions:

Socio-political acceptance

Community acceptance

Market acceptance


The conventional view of lcr

The conventional view of LCR

* WTO finding on Ontario’s REFIT - complaints brought by the EU and Japan

** Rivers and Wigle, 2011


Motive what do policy makers want from wind in the power sector

Motive: What do policy makers want from wind in the power sector?

  • INDUSTRIAL DEVELOPMENT

Visible


Opportunity

Opportunity


Back to the conventional view

Back to the conventional view

BUT


What could it mean globally

What could it mean globally?


Conclusions

Conclusions

And our hypothesis?

“The ability to implement ‘protectionist’ policies can unlock wind deployment which may otherwise not have occurred”


Thank you

Thank You

Oscar Fitch-Roy

[email protected]


Rethinking local content requirements

References:

Trypolska, G (2012) Feed-in Tariff In Ukraine: The Only Driver Of Renewables' Industry Growth? Energy Policy Volume 45, June 2012, Pages 645–653. Http://Www.Sciencedirect.Com/Science/Article/Pii/S0301421512002200

Kiev Post (2012) Ukrainian Lawmaker Defends His Law On 'Local Content' For Renewable Energy Plants. Http://Www.Kyivpost.Com/Content/Business/Ukrainian-lawmaker-defends-his-law-on-local-content-for-renewable-energy-plants-314475.Html

Article III Of The GATT, Paragraph 5: http://www.wto.org/english/res_e/booksp_e/gatt_ai_e/art3_e.pdf

Rivers And Wigle (2011) Domestic Content Requirements And Renewable

Energy Legislation, June 11, 2011:

Department Of Trade And Industry, South Africa (2011) Guidance Document For The Calculation Of Local Content Http://Www.Thedti.Gov.Za/Industrial_development/Docs/Ip/Guideline.Pdf

Bnds (2011) Circular No 33: Http://Www.Bndes.Gov.Br/Sitebndes/Export/Sites/Default/Bndes_pt/Galerias/Arquivos/Produtos/Download/Circ033_11.Pdf

Wto (2012) Wto Issues Panel Reports On Canada’s Renewable Energy Measures .Http://Www.Wto.Org/English/News_e/News12_e/412_426r_e.Htm

Ontario Power Authority (2012) Feed-in Tariff Program - Fit Rules Version 2.1.

Http://Fit.Powerauthority.On.Ca/Sites/Default/Files/Page/Fit_rules_version_2.1.Pdf

IEA Task 28: Social Acceptance of Wind Energy Projects. Final Report. Available online:

http://www.ieawind.org/index_page_postings/June%207%20posts/task%2028%20final%20report%202012.pdf

Wüstenhagen, Wolsink and Bürer (2007) Social acceptance of renewable energy innovation: An introduction to the concept.. Energy Policy 35 (2007) 2683–2691


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