ABSTRACT

One of the policy instruments most widely deployed are Local Content Requirements, either as a condition to receive public financial support or as part of eligibility requirements in public tenders. Several African countries have started solar module factories. There are broadly three potential advantages of local manufacturing: job creation, the opportunity to export and earn foreign exchange, and cost savings. As a result, there is a growing pipeline of projects and the Middle East solar market seems to finally kick off in a substantial way. When the author visited the impressive factory in July 2017, Luan showed him the large area next to the factory, which is earmarked for expansion. If they can offer a product with differentiating qualities, for example, a "desert module," specially designed to withstand the harsh environment in the Middle East and North Africa, it should be possible to compete with Chinese manufacturers, who offer generic global commodity products.