Local content requirements and exemptions are hot topics with the recent announcement to ease local content requirements for Bid Windows 5 and 6 of the REIPPPP.
But, shouldn’t we be developing an ambitious and sustainable localisation strategy for the long term rather than short-term fixes?
“There is no doubt that developing a local industry will create jobs, strengthen local production and manufacturing and ultimately ensure the sustainability of the renewable sector with a secure local supply chain. No one doubts the ambition of a localisation strategy. However, it is evident that to date, this has not been based on empirical data or the feedback of industry itself who can outline current capabilities, potential for growth and blockers to delivery,” said the organisers of Windaba.
The Fundamentals of Procurement Policy is just one of the topics to be addressed at the 11th annual WINDABA, where attendees will share expertise, unpack challenges and come together to drive a united transformation agenda of the wind energy sector in Africa.
With legislative changes imminent as a result of challenges to the Preference Procurement Policy Framework Act, the Breakaway session will deep dive into the challenges in implementing local content requirements.
“The wind industry stands ready to support government’s ambition to encourage local industrial development. However, there are significant challenges in implementing local content requirements. This has been clearly seen in the most recent Bid Windows and demonstrates the need for the sector and government to come together to shape a practical procurement policy.
“It is vital that local content calibrations start with an assessment of existing local capabilities and the market potential. Only then can we build a strategy that delivers increased investment in industrialisation and fosters a healthy local value chain,” added Windaba.
Windaba is a two-day conference and exhibition at the Cape Town International Convention Centre from 12th to 13th October. It will see public and private sector leaders and industry players come together and focus on how the wind sector can deliver more for the South African economy.
Key content pillars covered at the conference include: Wind Energy Finance, Impact, Implementation, Market and Policy, with expert local and international speakers discussing the importance of rolling procurement, how to deliver a thriving local manufacturing sector and how to leverage the current policy environment to deliver a sustainable, secure energy supply.
“Of course, industry also requires continuity and predictability, with a long-term procurement pipeline that would facilitate confidence in new manufacturing investments. Industry will not be sustainable if we continue on a stop/start mode and the rapid announcements of Bid Window 5 and 6 has engendered some confidence. This needs to be followed up with targeted policy interventions that will maximise meaningful local participation, through increased skills, ownership and a local wind value chain.”