ENERGY SAWEA
Garob Wind Farm in the Northern Cape.
during construction. This stimulates and drives local employment in rural areas. Our industrial strategy is aligned with the Just Energy Transition Policy and one of many primary benefits of the South African government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).” If smooth procurement of new wind energy production continues, in line with the Integrated Resource Plan (IRP), this sector is an excellent vehicle for direct infrastructure investment and a positive multiplier of economic effects, including specialised components manufacturing, such as wind turbine towers, construction industry, engineering and logistics. Sector experts point out that although it is still to be confirmed whether the country is well-positioned to be competitive at a global scale in all components, the first step is to ensure industry makes the most of local opportunity and builds capacity to supply the local market. Furthermore, it has been noted that certain parts of the supply chain may emerge to be more strategically placed to cultivate capacity in South Africa than others to be able to be competitive.
The BW5 local content threshold has been retained at 40%, in line with previous rounds, however the scoring mechanism incentivising further commitments above 40% has been removed from the request for proposal regulation. For the first time, the REIPPPP has introduced the concept of designated local content, which requires developers to procure specific components locally such as steel. Should these components be unavailable, bidders can apply for an exemption that needs to be lodged with the Department of Trade, Industry and Competition. However, Nordex believes that this should not be applied to tower production, as both local and international companies have already invested in local manufacturing facilities that successfully produced these components for the previous REIPPPP rounds. These OEMs have confirmed capacity to fully deliver the required towers for BW5, as well as future bid windows. “Job creation and skills development will be a direct result of these consecutive bidding rounds, as they enable local manufacturing to be re-established or continue in the case of our concrete towers,” adds Saunders.
If smooth procurement of new wind energy production continues, in line with the Integrated Resource Plan, this sector is an excellent vehicle for direct infrastructure investment. Spraying a wind blade.
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