- GWEC recently released a position paper calling for market-friendly localisation strategies, moving beyond restrictive Local Content Requirements (LCR’s) to accelerate global wind supply chain growth, which is crucial to the acceleration of wind energy deployment around the world.
As countries strive to build resilient, localised supply chains for wind energy, many are turning to Local Content Requirements (LCRs) to stimulate job creation and industrial development. However, this GWEC position paper warns that LCRs, when poorly designed or overused, can drive up project costs, deter investment, and slow renewable deployment. Instead, the report presents a new policy framework that leverages international competition, workforce development, industrial incentives, and regional cooperation to localise wind supply chains more effectively and sustainably.
Using case studies from markets such as Taiwan, Poland, India, and Brazil, the report shows how restrictive LCRs can undermine the very industries they aim to support. In contrast, countries that prioritise coherent, predictable policy and align with market incentives have successfully attracted investment, created jobs, and scaled manufacturing. This paper outlines seven key policy principles for policymakers to localise strategically and inclusively—without compromising affordability, innovation, or energy transition goals.
Key Recommendations
To localise wind energy supply chains while preserving cost competitiveness and deployment speed, policymakers should:
- Harness international competition: Avoid supplier lock-in by maintaining open, competitive procurement practices.
- Ensure policy coherence: Align industrial, energy, and grid policies across all governance levels.
- Provide long-term certainty: Guarantee auction visibility and stable market signals to attract and retain investors.
- Leverage local strengths: Build on existing industrial capabilities and transferable skills within the local economy.
- Offer market-based incentives: Use grants, tax credits, and infrastructure investment to encourage local supply chain development.
- Empower the workforce: Invest in training, apprenticeships, and technology transfer programs to boost local talent.
- Promote regional collaboration: Develop resilient, interconnected supply chains across borders through aligned policies and joint investment.
Link to download the full report HERE
Author: Bryan Groenendaal
