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The Big Question
Key executives weigh in on worldwide renewable energy issues
Do Domestic Content Rules
Help or Hurt Renewables?
Over the past few years the World Trade Organization (WTO) has
been called upon to investigate cases of domestic content rules
(DCR, also known as local content rules or LCR) in renewable
energy policy. In a more recent case, Ontario was accused of
violating trade law by requiring renewable energy developers to
purchase a designated amount of locally sourced materials for
projects as part of its feed-in tariff (FIT) program. In December
2012, the WTO found these practices to be illegal and upheld
its ruling in May after an appeal was issued. Meanwhile, many
countries still incorporate similar rules in their incentive programs.
Renewable Energy World asked industry executives to share
their thoughts and insights on this controversial question:
Do domestic content rules, those that require projects to
use a certain amount of services or material that is produced
locally, help or hurt the renewable energy industry?
THE LATEST RULING by the WTO on the Ontario
FIT is welcomed by the wind industry. In 2012,
wind energy grew by nearly 20 percent in Can-
ada, driving over € 1. 49 billion ($1.95 billion) in
investment and creating over 10,500 person-years
of employment. The wind industry in Canada
installed 936 MW in 2012, bringing total installed
capacity to 6. 2 GW by the end of the year. We
expect a market in the vicinity of 1. 5 GW for 2013
and in that same range for the next few years, as
Canada seems well on track towards the industry
target of 12 GW by 2016. Ontario remains by far
the largest provincial market, followed by Quebec and Alberta.
Legal recourse to national practices that distort trade is time-
consuming and introduces signifcant uncertainty for clean energy
Steve Sawyer
Secretary-General,
Global Wind
Energy Council
Ontario Wind Farm via Shutterstock
