Green Economy Journal Issue 39

ENERGY
Green jobs
are the green light
for our economy
BY NTOMBIFUTHI NTULI, CEO of South African Wind Energy Association
Photo by SAWEA
South Africa’s energy transition is poised to unlock economic growth and deliver
thousands of much-needed new jobs, at a time when the country faces staggering
unemployment rates that threaten to continue well into the new decade.
Kangnas Wind Farm.
Despite the approved 2019 IRP, which was gazetted in October
last year the industry continues to wait for a Ministerial Determination
to give the green light for the next round of wind farms
to be built, which will result in thousands of local jobs being created.
The positive impact of continued wind farm construction on the
economy, over the next ten years, cannot be overstated considering that
the energy plans promise 14 400MW of wind procurement. Once we
get the go-ahead the country can directly benefit through jobs that are
intensified during the construction phase of wind energy projects that
have a significant impact on different parts of the value chain.
Twelve wind farms are currently being constructed across the country
achieving thousands of jobs as well as high levels of local content, which
is in line with Minister Gwede Mantashe’s stated imperative that the
renewable energy sector, wind stakeholders included, increases its local
content efforts.
Perdekraal East Wind Farm, the Western Cape’s largest BW4 wind farm, is
currently under construction and is an example of localised job stimulation.
The project is providing local employment to community members of
Ceres, Nduli, Bella Vista and Prince Alfred Hamlet and has exceeded its
obligation for local content of the total project value as stipulated by
the Department of Energy’s renewable energy programme, Renewable
Energy Independent Power Producers Procurement Programme (REI4P).
It is expected that an average of 17 new wind farms will come on stream
each year, for the next ten years, as outlined in the resource plan. Should
this stay on track, South Africa will see the local manufacturing sector
helping to boost economic growth and job creation, two priorities across
the African region.
Tower manufacturing facilities are already set up in the country, with
additional capacity and facilities awaiting the government’s next bid
round as part of the REI4P.
So, if we are looking specifically at the manufacturing sector, this
industry is poised to create jobs to deliver the 640 individual towers
and 1920 wind turbine blades required to meet the annual capacity of
1600MW each year.
The existing local tower manufacturing facility in Atlantis, on the Cape’s
West Coast, currently produces 150 towers per annum and has created
340 direct jobs and 200 indirect jobs. Therefore, manufacturing 640 towers
locally can potentially create 1360 direct jobs and about 800 indirect jobs.
What our country can’t afford is a repeat of DCD Wind Towers’ fate.
What was once a successful manufacturer of local components in Nelson
Mandela Bay, closed its doors in April last year, which resulted in the loss of
over 100 direct jobs due to the stop-start renewable power procurement
that saw the industry halted for over two years. The plant had the potential
to manufacture up to 300 towers and create 142 direct jobs but failed to
find an investment partner.
Additional potential exists, should wind tower blades and other
components such as drive trains be manufactured locally, the number
of jobs could easily scale up to the 8700 estimated by the Council for
Scientific and Industrial Research (CSIR) analysis.
The CSIR analysis indicates that for 1.6 GW per annum roll-out, the wind
energy industry can contribute to the creation of more than 16 000 direct
jobs per annum in the South African economy during the construction
phase alone, given that the aggregate level of localisation of about 50%
is realised.
This equates to about 6400 direct jobs in the construction sector,
8700 direct jobs in the manufacturing sector, 820 direct jobs in the
transportation and logistics sector and 640 direct jobs in the finance,
professional and business services sector.
Despite the past setbacks, we continue to look forward to delivering
wind power to boost the country’s economy, as outlined in the 2019
Integrated Resource Plan and thereby deliver thousands of jobs for a
decade to come.
24
Green Economy Journal - GreenEconomyOnline
greeneconomy.media