This paper offers an initial assessment of the use, potential usefulness and legality of local content requirements (LCRs) in renewable energy policy. By scrutinising existing empirical evidence on LCRs, the authors identify a number of initial basic conditions that determine the effectiveness of such measures in creating domestic industries. The paper provides an in depth analysis of the wind LCR in China, and descriptive analyses of other LCRs used in the promotion of renewable energy around the world. It further qualitatively addresses the question whether or not local content requirements and medium-term innovation could be aligned. Finally, it discusses the legality of the measures under WTO law.
Other case studies include Canada, Spain, Italy, France, Greece, Croatia, the United States, India, Brazil, South Africa and Turkey.