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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
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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
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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).
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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
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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.
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• 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.
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Look out for a continuation of the seminar series in
the next year, with a list of topics that will include the
following:
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Picture: GIZ
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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
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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
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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
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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.
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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.
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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.
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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.
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• 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.
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• 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
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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.
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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.
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Stronger resource efficiency for desirable
communities: How local innovation in asset
stewardship ensures a prosperous economy
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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
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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
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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]
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