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Issue 9 / November 2013 The Green Economy Pictures: GIZ In this LEDnews edition... Page Editor’s note: Making Sense of the Green Economy Low carbon development in the hand of local government Local Government and the Green Economy KZN Municipalities and the Green Revolution Building a State That’s Responsive to The Green Economy Droogfontein Solar Park Green Economy Project within Sol Plaatje Municipality Stronger resource efficiency for desirable communities: How local innovation in asset stewardship ensures a prosperous economy 2 2 3 4 5 6 7 South African Local Government Association Economic Development and Planning Directorate Menlyn SALGA Corporate Park 175 Corobay Avenue (c/o Garsfontein Road and Corobay Ave) Waterkloof Glen ext 11, Pretoria, South Africa Tel: +27 (0) 12 369 8000, Fax: +27 (0) 12 369 8001 Website: www.led.co.za SALGA L E D N E W S E T T E R Editor’s note: Making Sense of the Green Economy SALGA and the Green Economy outh Africa continues to be faced by the multiple challenges of poverty, unemployment and inequality. At the same time, our economy is largely resource-driven and energy intensive. Compared internationally, South Africa is the 28th largest economy (total GDP, World Bank 2012) and at the same time the 12th largest producer of greenhouse gases (carbon dioxide emissions, UNFCCC 2010). A S Visit: www.led.co.za or get in touch with us via [email protected] L South Africa’s abundant renewable energy resources (wind, solar, water) and extensive biodiversity offer new opportunities for the transition to a green economy and green jobs. This has been widely recognised across government departments for years and in 2013, we see green economy visions and targets reflected in most government strategies and plans. The National Development Plan for example prioritises six areas for job creation: infrastructure development, agriculture, mining, manufacturing, tourism and a green economy. But what is a ‘green’ economy and what does it mean for local government? Low carbon development in the hand of local government t the centre of the transition to a Green Economy is the need to address climate change. The primary policy approach in respect of climate change response is framed within the National Climate Change Response (NCCR) White Paper (2011). This document outlines strategic priorities, provides direction for action and delineates responsibilities for the different spheres of Government. Section 10.2.6 notes the key role of Local Government as a site of climate change response delivery flowing from its responsibilities as detailed in the objectives and powers and functions accorded to Local Government in the Constitution of South Africa (108 of 1996) and the Municipal Systems (32 of 2000) and Structures (117 of 1998) Acts. “… a green economy is “one that results in improved human well - being and social equity, while significantly reducing environmental risks and ecological scarcities” (UNEP, 2011). Municipalities are expected to plan and respond to climate change in the midst of facing challenges such as the inability to predict with certainty the future conditions to which adaptation is needed, limited skills and capacity at the local level and pressing short-term needs drawing on limited municipal funds. It is against this backdrop, that a need to prepare South African municipalities towards transition in the field of green economy emerges. One important aspect of the green economy is at the same time its challenge - it does not have a single custodian in government but cuts across many areas: Economic Development includes it into policies and supports financing measures through DBSA and IDC. DTI supports green industry but needs other departments to implement further measures aimed at these industries. National Treasury develops fiscal measures in support of green industries and Science and Technology drives innovation in the field. The roles of the Departments for Environmental Affairs as well as Energy are also obvious. Other departments, including CoGTA, play important roles towards facilitating implementation at the local level. However, many questions remain on what approaches local governments should or could take. South Africa has a fairly long list of Green Economy related policies and programmes, most of which are recent, including: the Long Term Mitigation Scenario, New Growth Path, South Africa Renewables Initiative, Industrial Policy and Action Plan 2, Medium Term Strategic Framework, National Solar Water Heating Strategic Framework, Draft Carbon Tax Option, Integrated Resources Plan (2010-2030), National Climate Change Response Strategy, National Development Plan -Vision for 2030, Renewable Energy Feed-In Tariff Regulations, National Energy Efficiency Strategy, Green Economy Accord, Atlases (including Wind, Carbon Capture and Storage, Solar, and Risk and Vulnerability), the Carbon Disclosure Project (CDP), CDP Water, Energy Efficiency Accord and King III. Against this background, this LEDnews edition is dedicated to the Green Economy with a range of articles looking at the topic in different ways, illustrating examples and highlighting opportunities for local government to drive green LED. Contributions to the Green Economy go further than our choices for energy and transportation; and require active and sustained investment in protecting the natural environment. Water resources, functional ecosystems and biodiversity have emerged as critical inputs to both rural and urban livelihoods and wellbeing. Moreover, programmes such as the Expanded Public Works Programme, which encapsulates initiatives such as Working for Water, Working for Wetlands and Working on Fire continue to create significant numbers of jobs Enjoy your read! Your SA LED Network team SALGA PAG E 2 L E D N E W S and opportunities for skills development and the growth of small to medium enterprises. Continued investment in ecosystem-based adaptation and conservation practices will set us on a vital path to meeting employment and sustainable development goals. SALGA’s support to municipalities in the transition to a Green Economy Whilst comprehensive policies are necessary, and greater investment in cleaner production is imperative, information and the commensurate knowledge that it creates are critical. To this end, SALGA has developed a knowledge programme for local government on the Green Economy. This programme, which commenced in August 2013, comprises a series of seminars for local government practitioners on the institutions, capacity and investments required to support the transition of our country to a low carbon economy. These seminars draw on best practices and research generated by our partnership with UNISA and Exxaro, and presents a solid foundation for local government to explore their contributions in driving the green economy. The month of October saw the conclusion of seminars, held in nine provinces, and the inception of the second phase of the knowledge drive upon which SALGA and its partners have embarked. The second phase is anticipated to be a programme of learning and exchange between municipalities towards crafting SALGA as a knowledge hub of local government excellence in delivering on the Green Economy promise. E T T E R • Green economy readiness: A national level perspective • Green economy readiness and provincial government Green economy readiness and local government • Green economy readiness and corporate South Africa • Green economy readiness and labour Acknowledgements: SALGA wishes to acknowledge the intellectual property, enthusiasm and content provided by Professor G. Nhamo, the Exxaro Chair in the University of South Africa (UNISA). Professor Nhamo is a key contributor to this piece, and a firm partner of SALGA in the knowledge drive and a thought leader on governance and the green economy. SALGA also wishes to acknowledge the efforts and dedication of the Centre of Municipal Research and Advice (CMRA) team as key partners in the Green Economy Benchmarking programme. Author: Telly Chauke, Specialist: Environment and Climate Change, SALGA, [email protected] Opinion Local Government and the Green Economy T he industrial age has seen big advances for humanity. But still we are consuming the livelihood of future generations and social inequalities have not been revised despite a multiplication of overall wealth. For the future of us all we have to create a viable economy that incorporates environmental and social imperatives. We have to create jobs without overstretching our natural capacities. This will fundamentally change the way we produce and consume. For one the change relies on wise investments in green infrastructure and reducing the resource throughput and pollutant emission of the big industries. Clean technologies will have to be introduced, renewable energy has to become our major power and fuel source and products will rather have to be designed for long term use. Additionally, this green economy will depend on a strong local economy. Low-carbon jobs in the service sector need to be created and the means for flourishing will have to be provided locally to reduce transportation costs and raise identification with the products. Local is lekker as some say. There is a long way to go and change will only happen when individuals go ahead in their homes, organisations and companies. Visit: www.led.co.za or get in touch with us via [email protected] Although the greatest gains made in the transition to a green economy will be in actual projects, SALGA recognises that a policy environment that enables a smooth transition is necessary. In an effort to complement the work of the Department of Environmental Affairs in modelling, i.e. The South African Green Economy Modelling (SAGEM) Report, SALGA has initiated a local government benchmarking process to draw lessons of best practice in green economy endeavours in local government. This benchmarking study will establish the level of engagement our municipalities have with the Green Economy; the policy imperatives they have put in place; as well as the progress they have made in implementing projects that contribute to the green economy and meet development goals such as green jobs, energy efficiency and resource optimisation. A key outcome of this study will be a Best Practice Model to support policy alignment within municipalities to entrench and implement the Green Economy Accord, whilst reducing the carbon footprint of municipal operations and meeting primary development goals. L Look out for a continuation of the seminar series in the next year, with a list of topics that will include the following: PAG E 3 SALGA Picture: GIZ Visit: www.led.co.za or get in touch with us via [email protected] L E D N E W S Local government in South Africa has the constitutional mandate to care for the environment and the responsibility to deliver basic services environmentally sustainable. Municipalities in South Africa are therefore in the key position to promote a green economy. By-laws and regulations can trigger the application of energy efficiency measures, the dissemination of renewable energy and the enhancement of a local low-carbon economy. Efficiency in municipal street lightning can possibly be improved and wastewater facilities can be extended by bio energy generators. Special consideration should of course be given to local development planning, as here the municipality can state its vision of a green economy and formulate strategies on natural preservation, energy efficiency, renewable energy and climate change as well as plans for specific projects. Most importantly we should not forget that everybody needs to be a part of the green economy to make it work. Avoiding unnecessary car rides and switching off the lights when leaving the room, are first steps: the greenest energy is the one not used. But also using cotton instead of plastic bags and buying or selling local products on the market and looking into consuming products that have a long life span are essential. Local government can go ahead and become a role model in society with little effort. Particularly in every building an environmental responsible could be appointed amongst the staff. This person can introduce recycling bins and put up reminders to switch off the lights when leaving the room and to close the windows while the heater or the AC is running. This will refurbish the public purse and add credibility to other initiatives by local government. The next step can be to appoint an energy official. That person can interact with the local communities and might check if national government and donor programmes, e.g. for solar water heaters, clean cooking technology or efficient street lightning can be rolled out in the municipality or if investments in renewable energy and energy efficiency in municipal buildings would pay off. Organising environment fairs and school programmes are possible activities to raise awareness for the environment, climate change and energy related topics too. All in all energy and environment touch all aspects of our daily life. So it should never be seen as a separate topic but as a perspective that has to be taken into account in all aspects of our daily life, especially in municipalities. Municipalities in various European countries like Switzerland and Denmark have become the key driver of sustainable development. Their spatial planning incorporates extensive planning for sustainable infrastructure, green regulations and standards for buildings are issued, public traffic uses fuel saving technologies or even renewable fuel like biogas and SALGA PAG E L E T T E R so on. Integrating climate change and conservation of natural beauty should therefore be considered when development planning takes place. Investment from the private sector will follow. Picture: GIZ Author: Jan-Wilhelm Krebs GIZ Office Pretoria, South African - German Energy Programme (SAGEN) [email protected] Provincial Perspectives KZN Municipalities and the Green Revolution A midst all the excitement around renewable energy, it is often forgotten that all renewable energy projects, irrespective of their nature or of the technology used, will have to be located in a local municipality. It is primarily for this reason that the KZN Department of Economic Development and Tourism (DEDT) and Trade and Investment KZN (TIKZN) have joined forces to develop a municipal protocol, which allows municipalities to submit any unsolicited waste-to-energy technology bids they receive to an independent advisory panel. This panel of experts in 4 L E D N E W S L E T T E R bureaucratic system doesn’t compute. This is has been demonstrated in the way regulation has hampered numerous attempts to advance the green economy and green infrastructure provision. However its evident that many recognize that it would be a tragedy to allow bureaucracy to stifle innovation and we can address this by challenging the way regulations are interpreted and moving forward. The municipal protocol will give municipalities some sense of the risks and opportunities that exist in the waste-to-energy sector. It will also give them an overview of the particular technology being proposed and whether or not it makes economic and practical sense for a particular municipality. At present a municipality will not have to pay for this service and it is the intention of DEDT and TIKZN to continue to refine this protocol and expand its scope to municipalities especially once more is known about their different waste streams. Creating partnerships between the state and private sector to implement green technologies is an area with a large regulatory burden. The Local Government Municipal Systems Act 2000, the Local Government: Municipal Financial Management Act (2003) and the Local Government: Municipal Public Private Partnership Regulations (2005) all influence the type and conditions of partnerships that the municipality may enter into. DEDT and TIKZN have also established a Green Economy Technical Assistance Fund as a mechanism to stimulate the development of Green Economy projects within KZN. Examples of sectors that would qualify would include but not be limited to: Renewable energy, Lowcarbon transport, Green buildings/infrastructure, Clean technologies, Waste management, Water resource management, Sustainable agriculture. The current mandate of the fund is to provide matching funding for the development of feasibility studies, EIA’s or pilot installations, that would allow projects to progress to a bankable level. To date quite a few renewable energy projects have been assisted, most notably a potential wind farm in Huhluwe/Richards Bay, two anaerobic digester projects and a waste to energy project for the Umsunduzi Municipality. And there is still funding left for more applications in this financial year. More information can be found on the website, www.kzngreengrowth.com Authors: Nisaar Mahomed- Trade and Investment KZN, Email: [email protected], Tel: 031 3689619 Liesel Beires- KZN Department of Economic Development and Tourism, Email: [email protected], Cell: 0825208753 SALGA Western Cape Building a State That’s Responsive to The Green Economy T he impact and cost of regulation is frequently a source of frustration South Africa. Add to the mix the introduction of new technologies and new industries with unique needs and the PAG E Jaap de Visser in his 2012 paper entitled “An Excess of Caution” points out how these regulations can be interpreted in ways that allow them to work for municipalities instead of against them. De Visser provides the example of a regulation in Section 33 of the MFMA which applies to contracts running longer than 3 years that states that it is only possible to take on such a project if: “The municipality will secure a significant capital investment or derive a significant economic or financial benefit from the contract.” In the example of a waste to energy project this could be interpreted more loosely so that municipalities do not have to prove direct capital benefit but can make arguments around broader economic benefit in job creation, enhancing service provision or saving landfill space. Municipalities can help meet this regulatory challenge by assisting to identify and change burdensome regulation and sharing successful cases of partnerships that occurred within shorter time periods than expected, in compliance with the law, and that help to realize green development goals will need to be shared amongst municipalities. Despite regulatory challenges, notable progress has been made by the state and municipalities in moving towards greener economies. • In the Western Cape the City of Cape Town has been a testing ground for implementing green technology in low income settlements, notably for a pilot project originating through the Kyoto Protocol’s Clean Development Mechanism starting in 1999, and the city has learned many lessons and maintained its commitments along the way. •The Hessequa municipalities commitment to doing “many small things well” has been a drive to improve the resource efficiency of municipal service delivery. 5 SALGA Visit: www.led.co.za or get in touch with us via [email protected] the field of waste-to-energy technologies, will perform a due diligence to determine whether the bid is the most suitable for that particular municipality’s needs. This is done to assist those municipalities that may not have the requisite capacity to evaluate these unsolicited bids and also to ensure that the advice which they receive, allows them to make an informed decision regarding the management and utilization of their waste. L E D N E W S They are now attempting some bigger projects to take the area forward to a greener future. • Drakenstein municipality has illustrated their commitment by integrating environmental concerns into all of their planning, including waste management, air quality management and engineering master plans. Visit: www.led.co.za or get in touch with us via [email protected] • Theewaterskloof municipality is committed to a strong focus on resilience in the face of environmental change. The municipality piloted the Grabouw sustainability initiative in 2006, a project which revealed the scope of the greening challenge for the municipal area. • Overstrand municipality has one of the country’s first and most successful at source recycling projects. L E T T E R Droogfontein Solar project is located approximately 12 km outside Kimberley, in Sol Plaatje local municipality in the Northern Cape Province. Droogfontein Communal Property Association has leased approximately 100 hectares of land for the construction of the plant. At peak production the project is expected to generate 50 megawatt of clean renewable energy. On completion the Droogfontein Solar Power facility will convert energy from the sun into electricity by using 168,720 PV panels, and then feed the electricity directly into the Eskom 132kv distribution system. The plant will supply enough clean, renewable electricity to power more than 30,000 households. Droogfontein Power plant signed a 20 year agreement with Eskom for the sale of electricity and an implementation agreement with the Department of Energy for the project. • Witzenberg municipality is working with local businesses to implement solar electricity projects. • Saldanha Bay is investigating in becoming the hub of the green economy and has been the location of some of the first wind farm projects in the country. Through these projects municipalities demonstrate that they can and should take the lead, by continuing to lay the path and ensure that they can deliver on their mandate to provide a clean, healthy and safe environment now and in the future. Author: Margie Murcott, Programme Manager Economic Development and Planning, SALGA Western Cape [email protected] News from the Municipalities Droogfontein Solar Park Green Economy Project within Sol Plaatje Municipality Picture: Sol Plaatje Local Municipality The local communities such as Riverton are expected to benefit from the project in multiple ways including: S olar energy is one of the most promising clean and renewable energy sources in the world. In South Africa the use of solar generating power reduces the dependence on traditional power stations which release CO2 and other damaging gases into the environment. The process of generating solar energy does not consume water and therefore preserves scarce water resources. The Droogfontein Solar project is part of Governments Renewable Energy Procurement Program and is one of the first large-scale renewable plants in South Africa. SALGA PAG E • Employment opportunities for the local communities: during the construction period an average of 70 individuals will be required, while the number of jobs will vary from month to month depending on the stage of the construction work on the site. The amount of jobs captured to date is 300 jobs on site. More indirect jobs will be created at local manufacturers, suppliers and contractors are committed to source as many staff as possible from the local community. • Once Droogfontein Solar Park is in operation it will spend a percentage of operational revenue on socio enterprise development, in order to assist and accelerate the sustainability of local enterprise, promoting access to the economy for all people. 6 L E D N E W S • The industry is relatively new in South Africa and the Department of Energy has created a long term framework in order to develop the industry and provide opportunities. • The Droogfontein Solar power facility provides training programmes for employees to develop skills and expertise that can be applied elsewhere. Author: Phetole Sithole, General Manager: Local Economic Development, Sol Plaatje Municipality Mobile: 084 606 6297, Email: [email protected] International Perspectives A t a time of slow growth for the South African economy, it is important that councils maximise sustainable benefits from their assets to ensure ‘value for money’, in all sense of the phrase, for local communities. This is why the concept of ‘resource efficiency’ becomes so critical. Making change desirable and a political priority requires taking resource efficiency above and beyond immediate cost savings to seize the regeneration opportunity of smarter asset stewardship. This means innovation in the planning of council resources – financial, built, natural and people networks – on an area-wide basis across all processes and functions. This is depicted in the figure below. Seizing the regeneration opportunity of efficiency: resource-innovation hierarchy for councils Wealth ccreation Strong efficiency Boost local competitiveness Keep GDP local Reduce operating costs Avoid cost risk Pay to dump materials Weak efficiency Cost exposure (Source: author) Crucially, local authority innovation in resource efficiency (products, processes, services, or technologies) can actually boost competitiveness and also drive growth by enhancing productive capacity and creating investment. PAG E E T T E R Singapore and Barnsley in Asia and Europe respectively are two fine examples of this in action, with transferable learning for South African local government. Barnsley Metropolitan Borough Council (UK) has recognised the wider benefits of an investment in whole area energy efficiency, moving beyond the traditional return from lowering utility bills (i.e. reduced operating costs, affordable heating for residents), to appreciating how it can prevent a significant amount of Gross Domestic Product (GDP) leaving an area, whilst stimulating job creation too. A 2012 study of the Barnsley area (which has an economy worth R45 billion a year and an energy bill of R6,485 million a year) showed it could cut costs by millions through exploiting commercially attractive opportunities in energy and carbon management. Investments in energy efficiency could be made in homes, public and commercial buildings, as well as to industry and transport, which would pay for themselves in commercial terms over a 4 to 8 year period. The Barnsley study also found that around 10% of GDP at the city scale leaves the local economy each year through payment of energy costs and that this will rise substantially over the next decade as energy costs soar. However, it also concluded that by 2022 an area such as Barnsley, by investing 1% of GDP for ten years, would typically lead to cuts in the energy bill worth 1.6% of GDP every year. Moreover, this would cut emissions (based on 1990 levels) by up to 41%. Crucially this would also create jobs, improve energy security and tackle fuel poverty. So for instance, it would lead to the generation of 500 new jobs over the next ten years and add to GVA growth of R823 million each year. Bespoke efficiency measures include: efficient electronic products and white goods; window glazing – single to new; insulated doors; efficient lighting; and reduced household heating by 1oC. Singapore has gone a step further in realising the ‘upside of down’, by even turning a resource scarcity problem into a competitive advantage. This is through the development of water-based Special Enterprise Zones (SEZ). The so-called ‘Hyrdohub’ is a geographically defined area intended to realise agglomeration benefits from concentrating water industries in one geographical area. Singapore’s intervention originated as an efficiency response to a water scarcity crisis. The technology and knowledge management subsequently developed in water conservation evolved in 2006 to become an economic success story about export-led growth in the R3,873 billion global water market. Hydrohub’s vision is to grow value-added contribution from the water sector from R3.9 billion (0.3% GDP) in 2003 to R13.2 billion (0.6% GDP) by 2015. Jobs for this sector are expected to double to about 11,000 in 2015, with a large part of this growth being seen in professional and skilled categories. 7 SALGA Visit: www.led.co.za or get in touch with us via [email protected] Stronger resource efficiency for desirable communities: How local innovation in asset stewardship ensures a prosperous economy L L E D N E W S To conclude - we need to continually remind ourselves that being efficient tends not to be a voter winner for council politicians! To prevail, stronger resource efficiency by local government needs to be less about reducing municipal operating costs and more about close-to-home issues for voters like quality housing, well paid jobs and flourishing local economies. Author: Philip Monaghan is author of ‘Sustainability in Austerity’ and founder of Infrangilis, a research agency on the green economy and sustainable urbanization. www.infrangilis.org. Visit: www.led.co.za or get in touch with us via [email protected] Greenest Municipality Competition shifts focus to Green Economy On 28 June 2013, the Department of Environmental affairs awarded greenest municipalities prizes to best performing municipalities for the transition towards the Green Economy. The awards are linked to the Green Economy Plan, which emphasizes the implementation of measures to strengthen and expand economic growth through recycling and enterprise development to generate and sustain jobs as well as formalize existing jobs in the waste area as part of the economy. In 2013, the overall winners of the award were Greater Tzaneen Local Municipality and Ekurhuleni Metropolitan Municipality. Runners up were Newcastle Local Municipality and Ethekwini Metropolitan Municipality. More information on the awards and criteria: www.environment.gov.za Introducing Phila Xuza, Executive Director: Economic Development and Planning L E T T E R SA’s First LED Degree The Bachelor’s Degree in Local Economic Development (LED) has been developed by the University of the Western Cape in partnership with UJ’s CENLED and the dti. This is a four-year degree consisting of practical modules that students will be able to apply once they are employed by local authorities, provincial governments, non-governmental organisations, mines or any other institution that wants to improve their local economy. Entry requirements • • • • • Grade 12 with university exemption; Maths on 4 (50% to 59%); English on 4; Another language 4; Total score: 30 As part of the degree, 20 courses have been developed which can also be attended as short courses. The short courses are run over a five day period and target persons who are already working. The short learning programme forms part of an integrated learning pathway for LED practitioners, starting from a qualification at NQF level 4, and progressing to Master’s degree on NQF level 9. Topics include: Introduction to LED, analytical skills, managing a LED unit, applied project management in LED, Public Private Partnerships, trade and industrial policy, investment promotion, entrepreneurship, enabling mechanisms for LED, business retention, strategic planning, etc. For more information contact: Catherine Bopape, the dti, [email protected] Introducing Petrus van Niekerk, Intern Phila has been involved in economic development since 1996, working mostly with non-government initiatives, supported by international donors. She then moved on to work for research organisations that were instrumental in creating the calls for LED strategies. Phila was also the founding CEO of Aspire – the economic development agency of Amathole District, Eastern Cape, where she successfully implemented small town regeneration programmes that changed lives in many communities. Petrus van Niekerk joined the SA LED Network team in May 2013 and is currently managing the Community of Practice of the Economies of Regions Learning Network which core focus is on regional economic development in South Africa, facilitated by the National Treasury’s Technical Assistance Unit (TAU). Petrus also assists with regularly updating cover stories for the SA LED Network website. He is based at SALGA Western Cape’s Economic Development & Planning directorate where he performs a range of tasks related to the directorate’s performance objectives. Contact, Phila Xuza Executive Director: Economic Development and Planning Phone: 012 369 8000, Email: [email protected] Contact: Petrus van Niekerk (Intern) SALGA Western Cape - Phone: 021 446 9800 Email: [email protected] Info Box: LED and the Renewable Energy Independent Power Producers Procurement Programme With the Renewable Energy Independent Power Producers Procurement Programme (REI4P) the South African Government introduced renewable energy and independent power producers to the South African market. An important step for South Africa as green power is generated and a sign for the liberalisation of the energy market is set. A new dimension is added to the programme by the introduction of mandatory economic development measures to be undertaken by the independent power producers. There are 7 different requirements: job creation, local content, ownership by black people, management control by black people, preferential procurement of local businesses, enterprise development and socio-economic development contributions (SED). The criteria especially favour support to people living in a radius of 50km around the renewable energy project site. Additionally some of the measures require the power producer to submit a strategy or a plan to the DoE on an annual basis, namely enterprise development and socio-economic development contributions. Funding for these measures will be provided from the operative earnings over a period of 20 years. This means the energy projects contribute to the development of the local economy and local government could consider them as new partners in LED. Cooperation is not mandatory for the independent power producers, still they will be on the lookout for reliable partners that might help them to strategize their activities and facilitate dialogue with local communities. A good start for local government would be to gather information on the renewable energy projects happening in the area. Then local government can highlight opportunities for developmental projects linked to their IDPs and invite their SED officials of the companies to local meetings. Author: Jan-Wilhelm Krebs, GIZ Office Pretoria, South African - German Energy Programme (SAGEN) [email protected] SALGA PAG E 8