Investment in wind cascading to communities

18th November 2016 By: Kim Cloete - Creamer Media Correspondent

Africa’s leading wind energy event, Windaba, wrapped up in Cape Town earlier this month, with 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 believes Eskom will soon honour its legal obligations and that many jobs and community development projects are reliant on Eskom CEO Brian Molefe signing those PPAs.

The REIPPPP bid requirements for local content have increased from 21.7% in Round 1 to a target of 65% in Round 4. This is set to grow even 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 for increasing 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 5.

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 in initiatives ranging 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.