Construction World April 2017

ENVIRONMENT & SUSTAINABILITY

According to Greg Austin, MD of juwi Renewable Energies, primary economic development optimization efforts revolve around local content (LC) and job creation which combined account for 50% of the ED score. Up until now REIPPP projects have been awarded 70% on tariff and 30% on ED. “We are finding since there is little difference in tariffs between bidders, we have to differentiate ourselves by maximising ED and one strategy is to fully integrate as possible the local community into the projects,” said Austin. “Renewable energy has contributed massively to foreign direct investment, industrialisation and economic growth in South Africa and the current delay in awarding the next rounds of the REIPP is affecting ordinary people in local communities,“ said Austin, prior to speaking at the African New Energy Update Conference to be held in Cape Town next week. “In our most recent project the Mulilo-Sonnedix Prieska PV3 Solar, which reached commercial operation in August 2016, the key element of our strategy that lead to juwi being selected as the EPC service provider for the project was due to the high level of employment of the local community in constructing this 86 MW solar plant in the Northern Cape.” The local municipality of Siyathemba (including the towns of Prieska, Niekerkshoop and Marydale) has a total workforce of about 4 800 people. Unemployment is registered at 34,7%, with a participation rate of 57,4%. South Africa’s REIPP Procurement Programme awards projects based both on electricity tariff and economic development (ED) criteria. Since renewable electricity tariffs have decreased over the last few years – 35% and 78% for wind and solar respectively since 2008 – project owners are paying more attention to the competitive advantage of ED targets while increasing the number of local people employed on a project. Economic development as a competitive advantage

Job Creation

Man months Employees

Total man months

10 013

1 740

RSA based citizens

9 993

1 720

RSA based black citizens

8 631

1 479

Skilled employees

5 227

435

RSA based skilled black citizens

4 182

348

Citizens from local communities

5 332

911

“We are very proud to confirm that over 50% of the total number of people employed on the project involving the entire supply chain and construction effort were from the Siyathemba local municipality. 911 or 19% of the total local municipality work force of 4 800 were employed on the project in one way or another. “At the same time we achieved a massive 69% of the total project value that was spent in South Africa, both in the form of construction contractors and equipment suppliers. Looking ahead, the IPP unit of the Department of Energy have indicated scrapping Community Ownership and moving this to another evaluation element. There will be no cost implication and this move will support an increased socio- economic Contribution to the Local Community. I believe this change is a positive one,“ said Austin.  component sections making their way to Loeriesfontein, as Khobab Wind Farm’s sister property, Loeriesfontein Wind Farm, has already received all its abnormal loads. The 53 m long wind turbine blades, tower sections, nacelles and hubs travel on the N10 via Uitenhage, Graaff-Reinet, Beaufort West, Three Sisters, and Carnarvon onto Loeriesfontein. “The blades, towers, hubs and nacelles take approximately 3-days, travelling at maximum speed of 50 to 70 km per hour,” explained Foster. Road users are urged to exercise caution and to visit the wind farm’s websites for additional information and updated transportation schedules; www.khobabwind.co.za. Transportation is prohibited at night, during the school holiday period, on public holidays, during festivals or other special events. In the towns of Graaff-Reinet and Beaufort West transportation will be avoided during peak traffic hours, as far as possible. Khobab and Loeriesfontein Wind Farms, which together span 6 653 hectares, will produce an impressive combined output of 280 MW generated by their 122 wind turbines. This is equivalent of 240 000 average households being powered each year, providing a massive boost to energy provision in the country. 

Components arrive at Khobab wind farm The transportation of various wind turbine components to Khobab Wind Farm have commenced with the first two nacelles, two hubs, and three blades arriving at the wind farm on 22 February 2017.

The tower sections travel to Loeriesfontein, in the Northern Cape, on the N1 via Worcester, Laingsburg and Beaufort West, a five day journey of 1 396 km. The 53 m long blades together with other components will travel a 1 158 km route along the N10 from the Port of Ngqura to Graaff-Reinet, Beaufort West and on to the site. Trucks with oversized trailers, varying in size of up to 57 m in length, will deliver the various components to Khobab Wind Farm from late- February, with the final load arriving during August 2017. The locally manufactured sections mean that Khobab Wind Farm has achieved local content commitments exceeding 40% of the project’s total value. “Local content plays a vital role in the growth of the renewable energy sector and its positive impact on the country,” explained Kevin Foster, project manager of Khobab Wind Farm. Residents in Loeriesfontein and the surrounding towns of Niewoudtville and Calvinia have grown accustomed to wind turbine

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CONSTRUCTION WORLD APRIL 2017