Page 16 - Energize March 2022

NEWS

More jobs and investment from wind

tower manufacturers

ccording to the South African Local OEMs (Original Equipment Manufacturers) are certain that they have more than
Renewable Energy Master Plan: enough capacity to supply the demand, not only for BW5, but further procurement rounds
AEmerging Actions Discussion that the industry expects to come on line during 2022. Not only does South Africa have a local
Document, “to implement IRP2019 would steel tower manufacturing facility with significant capacity, but there are currently also two
require over 14 million solar panels and local pre-cast concrete facilities, one in the Western Cape and another in Prieska, Northern
3600 wind turbines alone. This represents Cape which recently produced concrete towers for Copperton and Garob Wind Farms.
a significant opportunity in employment Another advantage for the local economy, is that these concrete towers are 100% local,
and GDP contribution through annual including raw material such as concrete and rebar steel, aggregates and labour. Hence, this
production across the value chain – a industrial strategy is aligned with the Just Energy Transition Policy and one of many primary
potential of up to R182 billion annually benefits of the South African government’s REIPPPP.
and 39 000 people employed, to deliver “We are certain that South Africa has more than enough capacity to supply the demand
2600 MW of new capacity online each and meet the DTIC’s requirements. This is based on the assumption that on average the
year in 2030.” wind turbines installed in this latest bid window have an unitary power of 5 MW, and that
Stakeholders are aware that much of the local industry can manufacture more than 2 GW of towers annually, which is 30 to 40%
this anticipated investment each year that more than the 1,6 GW of BW5’s capacity,” explained Compton Saunders, Managing Director
is expected to flow in from the wind power of Nordex Energy South Africa.
industry for the next ten years, will come As reported by GreenCape, a non-profit organisation that drives the widespread
from the economic benefits of stimulating adoption of economically viable green economy solutions, that, as the industry gears
the local value chain. Supporting this, the up to meet the 24 GW of new renewable energy build by 2030, the need for local value
latest Renewable Energy Independent creation will increase exponentially, to ensure that the sector contributes to the country’s
Power Producer Procurement Programme infrastructural needs, Just Transition objectives, job creation in transitioning sectors, and
(REIPPPP) bid window (BW5) introduced establishing a local manufacturing base.
designated local content, which, over OEMs, such as Nordex Energy South Africa, play a key role in stimulating local jobs and
and above the 40% threshold, requires skills. The company sees the latest Bid Window (BW5), as an important link in driving the
bidders to procure specific components local value chain, which will directly stimulate the domestic job market.
locally. The Department of Trade, Industry “Job creation and skills development will be a direct result of these consecutive bidding
and Competition (DTIC) has reaffirmed rounds, as they enable local manufacturing to be re-established,” concluded Saunders.
this stance on local procurement and
the protection of local industry, issuing Contact David Moncasi, Nordex Energy, Salessouthafrica@nordex-online.com,
a briefing note to the Department https://www.nordex-online.com/en/south-africa
of Mineral Resources and Energy’s
Independent Power Producer Office (re-
issued 28 January 2022).
The note addresses the DTIC’s policy
position with regards to designated
items and the specific condition that only
locally produced or manufactured goods,
meeting local content stipulations, will
be considered. The DTIC clarified that the
exemption of steel and steel components
for wind towers is not granted, in support
of local production and content.
This is of course, a win-win for the
country’s economy as wind turbine towers
constitute 20% of the value of a complete
wind turbine. Furthermore, as a positive
multiplier of economic effects, this ruling
helps to drive local investment, jobs and
skills, which the country in begging for.

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