The Global Wind Energy Council (GWEC) has called for a collaborative approach between government and industry to develop market-friendly principles that can strengthen local supply chains without resorting to “restrictive” policies such as tariffs and local content requirements (LCRs). A new report from the GWEC outlines how well-designed, flexible policies can foster local industrial growth while advancing energy transition goals.
The paper, titled An Industry Perspective on Localisation: Pro-business Measures to Drive Local Industrial Development, argues that strategic development of local supply chains, when supported by market-friendly policies, can drive both economic growth and the expansion of renewable energy sectors. However, the report also warns that rigid localisation policies, such as LCRs, can have adverse effects, including reduced international investment, higher costs, and slower deployment of wind power projects.
“Successful localisation is not about closing markets but about opening opportunities,” said Stewart Mullin, GWEC’s chief industry officer. Mullin emphasized that local manufacturing capabilities thrive in environments where industrial, energy, and infrastructure policies are aligned to create predictable, investable conditions. He stressed that localisation should aim to build resilience, but not through measures that restrict competition or increase costs, such as local content requirements or tariffs.
The report highlights the importance of incentive-based policies like training programs, research and development funding, and infrastructure investments as more effective strategies for developing local wind industries. “The case studies provided by our members prove how these are more effective than protectionist measures in fostering sustainable local wind industries,” Mullin added.
Drawing on case studies from Taiwan, South Africa, Denmark, India, and Poland, the report emphasizes the value of leveraging existing industrial capabilities, fostering regional collaboration, and training local workforces. The GWEC identifies seven key principles for developing local industrial capabilities, including harnessing international competition, ensuring policy coherence, and providing market incentives to attract investment.
The wind industry urges policymakers to focus on incentive-based strategies that are aligned across sectors and are time-bound when using LCRs or equivalent policies. As wind power deployment is expected to increase significantly over the next decade, the GWEC argues that getting localisation strategies right is essential for both long-term energy security and economic prosperity.
