205. Enabling the infrastructure investment environment involves all fields of investment policy, and applying principles such as non-discrimination, investor protection and transparency. The energy sector being generally more restricted to foreign direct investment (FDI) than others, particular emphasis should be given to the extent of foreign ownership restrictions in clean energy (OECD, 2014). In particular, questions to consider include: non-discriminatory treatment of international renewable energy investment, intellectual property protection and adequate property registration systems, and contract enforcement. In addition, the site-specific nature of renewable energy resources calls for substantial efforts aimed at securing stable and reliable access to land.
206. Other common investment issues are particularly acute in the renewable energy sector: local content requirements, land ownership and leasing laws, company ownership rules, labour force regulations, and tax systems (e.g. customs duties for import of RE technologies).
• Requirements for local content and transparency can increase costs and delay projects. Local content provisions in PPP tenders and contracts and transparent procurement processes are important issues. Governments often try to use PPPs to build a local industry or to provide local employment. This can have a negative impact on the financial aspects of the transaction and the quality of labour and material inputs.
• Land ownership and leasing laws: real estate laws can impact project viability, particularly restrictions on foreign ownership.
• Company ownership rules: requirement to involve local partners through joint ventures or government participation.
• Labour force: requirement to hire and train local labour where qualified local staff is missing.
• Other cross-cutting issues: licensing, permitting, tax, customs duties, currency transfer.