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Rethinking local content requirements

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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  1. Rethinking local content requirements

  2. 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”

  3. What are Local Content Requirements (LCR)? • “Buy Local” X  Imports Imports vs

  4. What have LCRs got to do with social acceptance? IEA Task 28 identifies three dimensions: Socio-political acceptance Community acceptance Market acceptance

  5. The conventional view of LCR * WTO finding on Ontario’s REFIT - complaints brought by the EU and Japan ** Rivers and Wigle, 2011

  6. Motive: What do policy makers want from wind in the power sector? • INDUSTRIAL DEVELOPMENT Visible

  7. Opportunity

  8. Back to the conventional view BUT

  9. What could it mean globally?

  10. Conclusions And our hypothesis? “The ability to implement ‘protectionist’ policies can unlock wind deployment which may otherwise not have occurred”

  11. Thank You Oscar Fitch-Roy oscar.fitch-roy@gl-garradhassan.com

  12. 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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