Defining the localisation vision for renewables

The impacts of the Covid-19 pandemic, at both an individual and macroeconomic level, are not yet fully known and there is no doubt that a post-covid recovery will be hard fought. Central to any recovery strategy, is a focus on enabling, attracting and creating jobs and propelling growth. For the Renewable Energy sector, one such strategy is through localisation.

But, asks Maloba G Tshehla, Head of Strategy and Growth at ED Platform, are we as an industry prepared and ready to unlock the opportunities of localisation?

And have we and government fully understood what is to be localised, the mechanisms needed to localise as well as how government procurement can be used to drive increased localisation? Are there wider opportunities, such as private sector procurement, that can cleverly be leveraged to drive this same agenda?

Tshehla will discuss localisation and what it means for the South African solar sector with Colin Schroder, Chief Operating Officer, STI Norland, Louis Moyse, Acting Head of Contract Management and Economic Development, IPP Office, Mukesh Ramjee, Business Development Manager Machinery, Equipment and Electronics, Industrial Development Corporation (IDC), Thorsten Ronge, Managing Director, SMA Solar Technology South Africa (Pty) Ltd and Dr Rainer Nowak, Director, Webber Wentzel at the Solar Power Africa conference in Cape Town.

The Dtic and the Independent Power Producer office, as representatives of Government, have committed to driving localisation as part of the Local Economic Development Requirements built into the REIPPP programme.

The local content requirements of the initial Bid Windows of the REIPPP stipulated a certain percentage of local content and have resulted in several technology and component manufacturers establishing local manufacturing facilities.

Black South Africans now hold 33% of the shares across the complete supply chain and local communities hold 9% equity in the IPPs of BW1, BW2, BW3, BW3.5 and BW4.

“Progress towards localising has been strong, however there is potential for a localisation strategy to deliver so much more! The present reality is that due to a number of factors we do not have the local manufacturing capacity to meet the current demands of government’s RE procurement, opening up the critical question of what opportunities lie within localisation and how do we unlock these as a collective: industry-communities-government?” says Tshehla

This is just one of the strands of the complex topic of localisation that will be discussed and attendees will gain an insight into the latest thinking on how industry supports real localisation that builds capability and grows local supply chains in a competitive and sustainable way.

The speakers will explore the latest manufacturing trends to future proof new domestic facilities, supply chains as well as materials sourcing.

“Localisation isn’t just about manufacturing,” adds Tshehla.

“Local content should also lead to an enhanced skills base that allows us to leverage the knowledge of our local workers and enable them to add value across a wider spectrum of the solar PV value chain. A key ambition for any local content requirements must be to increase skills transfer and development, encouraging youth participation and employment within the industry. Having invested in the development of a deeply competent local skills base, we must use the growth opportunity inherent in our market to keep that local talent, or strategically export it as part of a wider strategy to be a regional and global leader”

Supporting government to shape a localisation strategy is vital if it is to reflect the needs of the solar sector as well as the South African economy as a whole.

“We as a sector need to support government with the provision of ​ research, data, insight ​ and experience into the local manufacturing and assembly capability and potential. This will allow us to ascertain what is to be localised, the mechanisms needed to localise as well as how government procurement can be used to drive increased localisation,” says Tshehla.

“Recovery post-covid will be hard fought, but by putting it into local hands, we may be able to capitalise on opportunities in renewables that will benefit our sector and South Africans on an individual and macro scale.”

The conference will run over 3 days, and will include 18 sessions and over 70 speakers. ​ There will also be a free to attend exhibition, with over 60 top suppliers to the sector. ​

You can view more information about the event at https://solarpowerafrica.za.messefrankfurt.com/capetown/en.html

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Issued by HWB Communications Pty Ltd on behalf of SAPVIA.

About Solar Power Africa

• Organised by Messe Frankfurt, in partnership with the South African Photovoltaic Industry Association (SAPVIA) and supported by RMB, Solar Power Africa is a 3 day event where attendees will benefit from direct access to expert insights and solutions to a range of challenges, as well as key trends and developments in the renewable energy market.
• Messe Frankfurt is one of the world’s largest trade fair, congress and event organizers and employs more than 2,500 employees across 30 different locations globally. The South African office has an experienced staff complement of over 35 team members with established marketing, sales and operational capabilities.
• The event is presented in partnership with two of the largest solar power and related industry shows in the world - Solar Power Events (SPE), the premier organizer for energy events throughout North America and SNEC, the world’s largest PV trade show based in Shanghai, China.

About SAPVIA

• The South African Photovoltaic Industry Association (SAPVIA) is a not-for-profit industry association serving the collective interests of its 540+ members across the PV value-chain spanning technical service providers, installer, EPC companies, financiers, developers, utilities and IPP’s.