SAWEA, climate commission support renewable energy masterplan, industrialisation

18th July 2023 By: Creamer Media Reporter

SAWEA, climate commission support renewable energy masterplan, industrialisation

The South African Wind Energy Association (SAWEA) and the Presidential Climate Commission (PCC) have welcomed the release of the draft South African Renewable Energy Masterplan (SAREM), which was developed by the departments of Mineral Resources and Energy (DMRE) and Trade, Industry and Competition (DTIC).

Stakeholders have been invited to review and comment on the draft masterplan.

"We welcome the intensive nature of the consultations as led by the DMRE, working with industry stakeholders, experts, labour and other government departments, which led to the development of the SAREM, which articulates a vision, objectives and an action plan for South Africa to tap into opportunities provided by renewable energy and battery storage technologies," the PCC says.

The commission adds that the masterplan heralds a new impetus for the country’s renewable energy drive.

"As the PCC, we welcome the four priorities as outlined in SAREM, being supporting the local demand for renewable energy by unlocking market demand and system readiness; driving industrial development by building renewable energy value chains and supportive trade and industrial policy; fostering inclusive development through transformation, supporting the development of emerging suppliers; and building local capabilities in skills and innovation and associated industrial development," the PCC says.

The PCC considers the SAREM as a "catalytic contribution" to the country’s transition to a net-zero carbon future.

"The SAREM is a reflection of government’s reaffirmation that our future energy mix will be aligned with the Just Transition Framework and geared at sustaining investments including those prioritised under the Just Energy Transition Investment Plan."

The commission says it believes the masterplan should contribute to the achievement of a just transition and support the shift of South Africa’s electricity supply and reiterates the need for a "transition-capable" developmental State to navigate the complexities of transition.

SAWEA, meanwhile, says the masterplan supports the association's advocacy for sector industrialisation, through increased local manufacturing.

"As such, we view the key pillars outlined by the document as effective interventions to create a better environment for local manufacturing, which will no doubt result in increased employment opportunities, investment, social inclusion and acceleration of our industry’s participation in a global wind supply chain,” SAWEA CEO Niveshen Govender says.

“Along with setting clear local content targets for future private and public procurement following a consultation process, the SAREM’s focus on driving industrial development outlines existing public sector programmes and policy support with localisation objectives.

"Furthermore, the plan outlines interventions to attract investment and aligns to the different national and international policies of the various government department stakeholders as well as international funding and trade institutions,” he adds.

He states that an industrialisation ag,enda which is rooted in robust local manufacturing capabilities, will allow the wind power sector to deliver the necessary new generation power needed for the country to thrive. 

"To this end, the masterplan provides a clear framework, which is necessary for both local and global investors, seeking an investment destination to manufacture renewable and new generation technology components, as part of the global supply chain.

"It is also worth reiterating that, in relation to the government’s public procurement vehicle - the Renewable Energy Independent Power Producer Procurement Programme - a stable and consistent pipeline with foreseeable and predictable timelines between procurement rounds, remains necessary to attract significant investments to rebuild the manufacturing sector and create a local market based on its competitiveness and value-add.”