Publication

This paper looks at the use and legality of local content requirements (LCRs) in renewable energy (RE) policy. The authors argue that LCRs for RE are used frequently, either as a precondition of financial support or as part of eligibility requirements in public tenders. They also observe that LCRs are often attached to expensive public financial support programs to gain additional local benefits from increased RE deployment and that most countries using them base their policy choices on political motivations, rather than on economic and empirical analysis.