The South African Wind Energy Association (SAWEA) and its sector stakeholders have reiterated that the industrialisation of the renewable energy sector holds enormous potential across the value chain, including economic power and societal benefits.

The association, in a media release issued on April 4, stressed the importance of managing the industrialisation of the renewables sector responsibly, by ensuring components were localised on the basis of their competitiveness and value-add.

SAWEA noted that predictable and continued procurement was needed to underpin any industrialisation policy, while incentives were needed to build more and better local capabilities, if the wind industry was to compete with international markets, while supporting local manufacturers to become competitive for export markets.

“Transformation goes hand-in-hand with the industrialisation of the wind power sector. And market certainty is the most important aspect to building a local manufacturing industry.

“Hence, we require the Department of Mineral Resources and Energy to provide consistency, in line with the Integrated Resource Plan 2019 (IRP2019), to kick-start industrialisation by providing upfront certainty on a number of Renewable Energy Independent Power Producer Procurement Programme rounds and their primary local content framework,” said SAWEA CEO Niveshen Govender.

The country’s power sector procurement model started evolving over a decade ago, with major policy shifts.

This has accelerated over the last 18 months, with the lifting of the licensing exemption cap on distributed generation to 100 MW and government's continued commitment to rolling procurement.

This is in line with the global uptake of renewable energy to increase energy security and achieve climate goals.

South Africa’s energy roadmap, the IRP2019, requires 3 600 wind turbines, underpinning the industrialisation plan and demonstrating a noteworthy opportunity for local employment and gross domestic product contribution through yearly production across the value chain.

SAWEA stated that, by maximising the use of the current industrial capacity to supply materials and components into the sector’s demand areas, additional investments in capacity and capability would be stimulated.

“We continue to support the various stakeholders, including government, labour, civil society, researchers, industry contributors and other advisory groups, which are currently drafting the South African Renewable Energy Masterplan.

“The plan addresses exactly how we can industrialise the renewable energy value chain in our electricity sector to enable inclusive participation in the energy transition, serving the needs of society and contributing to economic revival,” said Govender.