Challenges for local community development in private sector-led renewable energy projects in South Africa: an evolving approach

Abstract

The Renewable Energy Independent Power Producer Procurement Programme in South Africa is intended to support the uptake of renewable energy, help address the current energy supply crisis and mitigate greenhouse gas emissions. Notably, it also requires project developers to engage with socio-economic development at the local level. The distributed nature of renewable energy generation may induce a more geographically dispersed pattern of development, and renewable energy sites can be highly suited to rural locations with otherwise poor potential to attract local inward investment. Socio-economic development and enterprise development are two of seven economic development elements in the programme.In order to prepare a bid submission, project developers have to assess local socio-economic needs around their project site and develop strategies on how to address these. This paper investigates the challenges for local community development. The research is based on case studies and presents findings from the perspective of a research team working alongside project developers. Early findings indicate that there are potential community benefits from commercial wind projects, providing an appropriate community engagement process that is aligned with the project cycle determined by the tender process and engineering requirements. The Passive Community Needs Assessment approach is introduced as a possible solution.

Enrolling the Private Sector in Community Development: Magic Bullet or Sleight of Hand?

“…As critics have pointed out, this definition presents a number of problems (Baker and Wlokas, 2014;Tait et al, 2013;Wlokas et al, 2012). First, what constitutes a community is not defined, but is treated as an arbitrary geographically delimited object for development intervention.…”

“…It is too early to assess potential developmental outcomes for 'communities', but recent history suggests the signs are not particularly promising. Working through community trusts is unlikely to change this and REIPPPP is unlikely to deliver meaningful and inclusive change unless there is deeper engagement with beneficiary communities (Wlokas et al, 2012). Working through community trusts is unlikely to change this and REIPPPP is unlikely to deliver meaningful and inclusive change unless there is deeper engagement with beneficiary communities (Wlokas et al, 2012).…”

“…Businesses working with communities in South Africa have often failed to recognize conflicting interests or to work with regional planning structures, and have prioritized meeting the needs of local elites rather than ensuring inclusive decision making over choice and acceptance of projects (Mbeke, 2009;Ponte et al, 2007). Working through community trusts is unlikely to change this and REIPPPP is unlikely to deliver meaningful and inclusive change unless there is deeper engagement with beneficiary communities (Wlokas et al, 2012). As discussed, evidence suggests that developers are initially focusing on smaller projects to build 'brand image' and promote acceptance (Tait et al, 2013), but building sports centres and community halls will do little to address the deeper structural problems within local communities.…”

Reducing energy poverty through carbon tax revenues in South Africa

“…The mix of electricity generation depended heavily on coal, resulting in 'combined margin emission factor' for South Africa of 0.957 tCO 2 /MWh in 2009/2010 [70]. With increasing shares of renewable energy, which will benefit sustainability in social, economic and environmental dimensions [71][72][73], the official electricity plan projects a 34% decline in CO 2 intensity from 2010 to 2030 [74]. Any increase of emissions is, therefore, likely to be reduced; though the reason for including the programme is its reduction in energy poverty.…”

Community acceptance challenges of renewable energy transitions: A tale of two solar parks in Limpopo, South Africa

“…In this context, local content requirements means 'local community empowerment targets', which refer to specific community-based initiatives that directly benefit the community instead of 'economic development' that may include domestic industrialisation and preferential procurement. Local community empowerment targets may include enterprise development, management control, job creation and local ownership (Eberhard et al, 2014;Wlokas et al, 2012;Pegels, 2010). Studies have shown, however, that renewable energy developers, or independent power producers (IPPs), do not deliver on the local community empowerment targets set during the bidding process (Wlokas et al, 2017;Eberhard et al, 2014;Wlokas et al, 2012;Pegels, 2010).…”