Green Economy Journal Issue 59

ENERGY
THE PUSH
for renewable energy
INDUSTRIALISATION
Kangnas Wind Farm.
Wind association gets behind the SAREM
SAWEA has put its voice of support behind the release of the draft SAREM, led by the Department
of Mineral Resources and Energy and the Department of Trade, Industry and Competition.
BY SAWEA*
The product of a rigorous process, including input from SAWEA’s
Manufacturing and Local Content Working Groups, stakeholders
have been invited to comment on the draft South African
Renewable Energy Masterplan (SAREM) document.
“Together with the broader renewable energy industry, we welcome
this framework, as it supports our 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,” says Niveshen Govender, CEO of SAWEA.
Designed to stimulate the industrial development of renewable
energy and battery storage value chains and contribute to the broader
development needs of the country, the SAREM clearly lays out a
framework in which opportunities linked to the booming market for
renewable energy can be accessed, both domestically and globally.
The four key pillars of SAREM focus on supporting market demand;
driving industrial development; fostering inclusive development
and building local capabilities.
“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,” explains Govender.
As noted by SAWEA, despite initial localisation targets reflected in
the 2022 draft, the SAREM has been revised to exclude specific targets
at this time, which will be obtained through an inclusive negotiation
process between the social partners.
“Fostering inclusive development” refers to the sectors transformation
objectives, and relates to both public and private procurement. Clear
transformation objectives are to be established by developing and
implementing a sector-specific BBBEE scorecard with targets to be
achieved upon the conclusion of the negotiation process. Local and
READ REPORT
emerging suppliers will be supported through the development of
a transformation fund.
“While the SAREM draft provides a conducive environment
for localisation, responsibility remains with manufacturers to
negotiate the investment and associated targets. Communities are
to be involved through directing renewable energy and storage
activities, linked to Just Transition hotspots, indicating that public
procurement rounds could be launched in these areas. In support of this,
industrial parks or Special Economic Zones, such as the Atlantis green
economy hub, may further be established in these areas to support
employment and skills development,” adds Govender.
Govender concludes, “An industrialisation agenda, 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 REIPPPP, a stable pipeline
with foreseeable and predictable timelines between procurement
rounds, remains necessary to attract significant investments in order
to rebuild the manufacturing sector and create a local market based
on its competitiveness and value-add.”
*South African Wind Energy Association
Niveshen Govender,
CEO of SAWEA.
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