In this contribution the application of localized molecular orbitals for th
e separation of local and long-range correlation effects in extended system
s is studied in the framework of the many-body perturbation theory. We firs
t summarize the basic ideas developed by Professor Kapuy for extending diag
rammatic methods based on localized one-electron states in correlation ener
gy calculations. After describing some possible ways for characterizing the
extension and separation of localized MOs we give a flexible procedure for
the truncation of long-range correlation effects with the remarkable prope
rty that the range of the Coulomb interaction is still kept infinite. Analy
zing numerical results the convergence of localization corrections is discu
ssed and the separation of local correlation terms show that only the immed
iate neighborhood of a localized MO plays a considerable role in excitation
processes.