Investments in large-scale solar power projects in Africa, supported by increasing populations and growing economies spurring energy demands, will transform the continent and will create hundreds of thousands of formal-sector jobs, says renewable-energy investor Solar Capital president Paschal Phelan.

A study by the Development Bank of Southern Africa and nonprofit economic research institute the Trade and Industrial Policy Strategies estimate that about 462 000 jobs can be created in South Africa by 2025 in the formal sector of the green economy, he says.

“Solar Capital exceeded its local employment goal, with more than 90% of its 2 000 workers at the construction site of the Solar Capital De Aar photovoltaic power plant drawn from local communities and previously disadvantaged backgrounds,” says Solar Capital social economic development head Janice Finlay.

According to the United Nations Environment Programme, South Africa recorded $5.7-billion in renewable-energy investments in 2012, with many solar power projects receiving investments.

“The potential for renewable-energy generation in Africa is high, owing to the fundamental drivers on the continent,” says Phelan.

The Solar Capital De Aar project, in the Northern Cape, is an example of how communities in which renewable-energy initiatives are implemented can be revitalised and uplifted.

“A community trust has been formed in De Aar and will own 8% of the project. The trust will ensure dividends exceedingR350-million over the 20-year period. A guaranteed 10% of the project’s income will go to the community’s social and economic initiatives, which will amount to more than R46-million in the first five years alone,” says Finlay.

The company has also committed to spending R191-million of its total income on socio-economic development and R76-million on enterprise development during the 20-year life span of the first phase of the project.

Solar Capital also donated more than R2-million to the Foundation for Alcohol Related Research, which is involved in the De Aar community, she adds.

“The South African government is now, more than ever before, committed to embrac-ing and developing the benefits that clean energy offers. As one of the biggest players in the solar energy sector, we are excited about the growth and positive impact that solar power is having on the country and the communities in which we work,” notes Phelan.

“South Africa’s successful execution of its Renewable Energy Independent Power Producer Procurement Programme has powered the growth of the country’s renewable-energy industry and aims to generate 3725 MW of the country’s electricity from renewable sources. “Renewable energy is expected to account for 12% of the energy mix in South Africa by 2020,” he concludes.