Page 18 - Energize January 2022

NEWS

Wind industry market leader views localisation as a

key economic driver

riginal equipment manufacturers (OEMs), such as Nordex Energy South Africa (NESA), BW5, as well as future bid windows.
will play a key role in stimulating local jobs and skills. The company sees the latest With the announcement of BW5
OBid Window (BW5) as an important link in driving the local value chain, which will under the REIPPPP, which includes 1600
directly stimulate the domestic job market. MW from onshore wind energy and BW6
“The wind power industry is expected to drive an estimated R40-billion of investment expected to be announced Q1 2022, the
each year over the next decade, with a fairly large percentage coming from the economic wind power sector is gearing up to deliver
benefits of stimulating the local value chain. This includes local manufacturing, transportation adequate energy to the country and
and other related industries,” explained Compton Saunders, Managing Director of Nordex help shift the economy onto a positive
Energy South Africa. trajectory.
He added that the option of concrete constructed wind turbine towers has the added “Job creation and skills development
advantage of boasting close to 100% local content, including raw material such as concrete and will be a direct result of these consecutive
rebar steel, aggregates and labour, in addition to offering the option of manufacturing at site. bidding rounds, as they enable local
“Currently Nordex is the only supplier of local concrete towers, which are manufactured manufacturing to be re-established or
by the local industry and create local jobs and skills directly at site, as the manufacturing continue in the case of our concrete
facilities can be set-up close to the project facility during construction; hence stimulating towers,” added Saunders.
and driving local employment in rural areas. This industrial strategy is aligned with the Just The most recent REIPPPP project
Energy Transition Policy and one of many primary benefits of the South African government’s to come on line, Garob Wind Farm,
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).” incorporates 46 wind turbine generators
Assuming that smooth procurement of new wind energy production continues, in line with with AW125-3150 technology, as well as
the Integrated Resource Plan (IRP), this sector is an excellent vehicle for direct infrastructure concrete towers, and is able to generate
investment and a positive multiplier of economic effects, including specialised components 573GWh each year, during its 20 years
manufacturing such as wind turbine towers, construction industry, engineering and logistics. of operations. The 145 MW Garob Wind
Sector experts point out that although it’s still to be confirmed whether the country Farm achieved commercial operation
is well positioned to be competitive at a global scale in all components, the first step is to in December 2021 and is located in the
ensure industry makes the most of local opportunity and builds capacity to supply the local Northern Cape, close to Copperton, in the
market. Furthermore, it has been noted that certain parts of the supply chain may emerge Siyathemba Local Municipality.
to be more strategically placed to cultivate capacity in South Africa than others in order to The construction of Garob Wind Farm,
be competitive. which commenced in April 2019, installed
The BW5 local content threshold has been retained at 40%, in line with previous rounds, concrete towers fully produced in the
however the scoring mechanism incentivising further commitments above 40% has been manufacturing facility set up in Prieska,
removed from the RFP regulation. For the first time the REIPPPP has introduced the concept a mere 40 km from site. The work was
of designated local content, which requires developers to procure specific components locally completed by local contractors, providing
such as steel. Should these components be unavailable, bidders can apply for an exemption, employment for over 500 people from
which needs to be lodged with the Department of Trade, Industry and Competition. the local community at the peak of the
However, Nordex believes that this shouldn’t be applied to tower production, as construction phase of the project.
both local and international companies have already invested in local manufacturing
facilities which successfully produced these components for the previous REIPPPP Rounds. Contact Nordex Energy South Africa,
Furthermore, these OEMs have confirmed capacity to fully deliver the required towers for SalesSouthAfrica@nordex-online.com

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