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Investment in wind energy cascades to communities

4th November 2016

By: Kim Cloete

Creamer Media Correspondent

  

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Africa’s leading wind energy event, Windaba, has wrapped up in Cape Town, with its organisers confident of the event’s role in transitioning South Africa to a cleaner energy future. 

“Windaba has provided many comparable examples of global experience of achieving environmental sustainability,” said South African Wind Energy Association (Sawea) incoming CEO Brenda Martin.

The conference, themed ‘Towards 100% renewables’ highlighted the uncertainty in the South African renewables market, owing to the delay by Eskom in signing power purchase agreements (PPAs) with the winning bidders in the fourth bid window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

However, Martin believed Eskom would soon honour its legal obligations, adding that many jobs and community development projects were reliant on the Eskom CEO, Brian Molefe, signing those PPAs. 

The REIPPPP bid requirements for local content have increased from 21.7% in round one to a target of 65% in round four. This is set to grow event further if further rounds of the REIPPPP are announced.

Sawea local content working group head Anne Henschel is confident that the renewable-energy programme will boost local jobs and uplift communities. 

“Through the Sawea working group we believe this can be achieved with open and clear communication, working together to bring about real change in the industry at this time,” she said.

Henschel, who is also the MD of Nordex Acciona Windpower, added that the working group had drafted a position paper on local content for the Department of Trade and Industry (DTI), to serve as a roadmap to increase skills development and job opportunities in the wind energy industry in South Africa. 

Sawea has called for greater industry participation and a closer working relationship with entities such as the South African Bureau of Standards.

“It is vital that sufficient capacity, strong industry structures and reliable processes are in place to assure investors,” said Henschel. 

The Sawea working group has also held discussions with the DTI on changes to the REIPPPP local content concepts for round five.

Local content is evident in wind farms such as the 138 MW Gouda wind farm near Tulbagh, in the Western Cape. The farm comprises 46 Nordex Acciona 3 MW 100/3000 turbines and uses 100 m cement towers, which are 95% made in South Africa.

Many of the big wind energy farms are in deep rural areas, where jobs and development are sorely needed.

Investors have been deeply involved from upgrading schools, running nutrition programmes and donating sports kits, to providing equipment for community clinics and helping with business and computer skills training in the villages and towns surrounding wind energy farms.

Bidders have ploughed an average of 2.2% of their top line revenue into community development near South Africa’s renewable-energy projects so far. They also have to ensure that community trusts own at least 2.5% of the equity in each project.

Windaba was hosted by Sawea, in partnership with the Global Wind Energy Council.

Edited by Creamer Media Reporter

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