Electricity and Control August 2021

ENERGY MANAGEMENT + THE INDUSTRIAL ENVIRONMENT

The solar PV plant at Paleisheuwel in the Western Cape has an operating capacity of 82.5 MW.

With regard to enterprise development, Price highlights an example from the 148 MW Nxuba wind farm near Cookhouse in the Eastern Cape, which came online towards the end of 2020. EGP RSA wanted to create a video illustrating community involvement in the development and operations of the project and sought a local videographer to do the job. It provided support to the young entrepreneur who tendered for the assignment, and assisted in providing business skills training and basic materials for the new start-up, as well as drones for some of the filming. The video testifies to the professionalism and skill of the producer. This new business continues to operate locally, serving other businesses in the area. Inanother example, alsoat theNxubaproject, the turbines here saw the first use in South Africa of concrete tower sections, which were manufactured in nearby Somerset East, creating additional jobs during the construction phase of the project. This is a great demonstration of driving local manufacturing, using local labour and boosting local economic development. FDI constitutes more than money Price emphasises that while foreign direct investment is typically thought of only as a sum of money, it is about much more than that. It is about shared knowledge, skills, technologies, best practice learnt through global

RSA, as well as all tenders it receives from contractors and suppliers have to meet those requirements. In his view the REIPPPP offers a model for other African countries looking to increase renewable energy generation, although it must be implemented consistently. The opening of Bid Window 5 promises a renewed commitment to the energy transition. Creating shared value One of the company’s core operating principles is the concept of creating shared value. This encompasses the sharing of knowledge, skills, training and investing in local development in all its projects. A certain percentage of projected gross proceeds and returns from ongoing operations is invested back into socio-economic development of local communities, including enterprise development, skills development and the development of other local assets where appropriate. In each project, Enel Green Power South Africa will undertake an asset mapping in the local community to identify potential needs, which are considered in terms of specific UN Sustainable Development Goals (SDGs) relating to education, healthcare, food security, and energy provision. It consults with the local community, inviting the people to identify their needs and to set up a project steering committee that will work with EGP RSA to take identified projects forward. For enterprise development, for example, EGP RSA will finance start-ups and work through the start-up process with the entrepreneurs, offering guidance and support, to the point where a new business is up and running. All projects are evaluated in terms of their contribution to the respective SDGs and evaluations are reported to the IPP Office on a regular basis. Enel Green Power’s perspective is that wherever it develops new business, setting up a new power plant using renewable energy resources, the local community should prosper too. Localised job creation is fundamental to this and in South Africa EGP takes the approach of preferential procurement to prioritise local businesses. For example, a new plant will need security services and EGP RSA will issue a tender for local service providers. Similarly, for ongoing maintenance on electrical systems or civil works it will give preference to local service providers, building up a local workforce.

Renewable energy projects create valuable job opportunities from initial engineering design, through construction, operations and maintenance. The Nxuba wind farm in the Eastern Cape, completed towards the end of 2020, has a generating capacity of 148 MW.

Electricity + Control AUGUST 2021

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