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A FIT law can also have an industrial policy objective. Choosing this support mechanism can help political aims of participating in a globally-growing market and establishing a national industry, and in getting political support for the FIT law in your country or region.
Developing countries, in particular, sometimes oblige producers to include a certain share of national or regional components in their renewable installations. This is intended to provide an incentive for developing a national industry and to oblige international actors to shift production to the country or region.
A possible disadvantage of such a provision is that the local industry will not develop fast enough to provide the required share of the plant components and international companies will not move their production facilities to the relevant country or region. Under these circumstances, the development of the green electricity market will be hampered by the FIT law.
For example, Chubut Province in Argentina has enacted a tariff (or price) payment that is dependent on locally produced or assembled wind energy components:
Chubut Province in Argentina
English
Wind energy law 2005, Article 4 provides that:
... to enjoy this benefit, the wind mills installed have to comply with a timeline detailed further below of including components made or assembled in the Province of Chubut:
a) As from 1 January 1999: 10%
b) As from 1 January 2001: 30%
c) As from 1 January 2003: 60%
d) As from 1 January 2005: 80%
e) As from 1 January 2007: 100%
Español
Ley Eólica 2005, § 4 establece que: