To view this page ensure that Adobe Flash Player version 11.1.0 or greater is installed.
SOCIAL DEVELOPMENT
SOCIAL ECONOMIC
DEVELOPMENT A CORNERSTONE OF SA’S
RENEWABLE ENERGY PROGRAMME
T he Renewable Energy
Independent Power Producer
Procurement Programme
(REIPPPP) is a comprehensive
programme which doesn’t just pave
the way for affordable, green electrons
on the grid from Independent Power
Producers (IPPs). It also requires – no,
actually solicits – localised community
development, in addition to job creation
and skills development.
In a nutshell, IPPs under the
REIPPP programme are obliged to
make a contribution to local economic
development in the immediate
geographic area of the power plants.
Procurement rules stipulate that projects
spend a percentage of revenue on Socio
Economic Development (SED) and
Enterprise Development (ED) as well as
allocate ownership to local communities
depending on the obligations they signed
up for in the bid documents.
However, whilst the private sector
may have embraced the challenge,
meaningful local economic development
and socio-economic development
strategies are not without their difficulties.
In fact, some studies refer to ‘the
potential for delivery failure on socio-
economic and enterprise development
criteria’. A number of the 64 approved
IPPs are looking to the Department of
Energy for additional guidance. There
is most definitely a lack of community
engagement experience amongst
developers and the DOE is challenged by
a shortage of monitory capacity.
32 Gentle Care Centre.
Potential risks and challenges:
The projects in the main are situated
in areas with depressed economies.
In most instances there is a lack of
delivery mechanisms which includes
amongst others, limited numbers (if any)
of non-governmental organisations and/
or entrepreneurs that are large enough
to absorb the kinds of SED spends
available. • Managing expectations of beneficiary
communities • Managing potential community conflict
in relation to funding and local benefit
ownership • Lack of experience and developers
• •
• •
• who are primarily RE construction and
power generation businesses
Managing community engagement
processes Difficulties include setting up
meaningful and beneficial
relationships with communities
Raising awareness and education
around RE technology relating to the
IPPs Creation of meaningful jobs within the
defined radius
Strategic engagement with other
projects situated in close proximity
who are targeting the same
communities ESI AFRICA ISSUE 3 2014