Independent Power Producers

OVERVIEW 

The Northern Cape occupies a central position in the global debate regarding the renewable energy contribution in South Africa. The Province is regarded as HOME to sustainable private investment in Renewable Energy and to date the Northern Cape is host to 59 of the Country's 112 Independent Power Producers with more than 23 projects already connected to the grid at a capacity of over 1500 MW. The Northern Cape has the potential to generate energy by means of Concentrated Solar Panels (CSP), Photovoltaic (PV) and Offshore Wind. An area of particular confusion for many bidders has been the economic development requirement accounting for a total of 20% of the net value of the Renewable Energy's Independent Power Producers Procurement Programme (REIPPP) proposals. The IPP is required to assess the needs of communities within a 50-km radius of their respective sites and prepare strategies on how to address the needs of the cornmunities. What has been difficult for the IPPs is that the Department of Energy (DOE) has provided no guidance on how to prepare acceptable plans and how to demonstrate potential benefits. These IPPs had to go on the ground to assess the needs of the community. During the survey, IPPs indicated their willingness to work with the Municipalities in addressing the needs of the communities. Given the circumstances on the ground, one was able to learn more about the success stories as well as challenges: 

KEY SUCCESS STORIES AND CHALLENGES 

KEY SUCCESS STORIES 

The good news is that these IPPs have Economic Development Obligations (EDO) whereby 2% of the revenue from the 1PP is channelled towards the Socio-Economic Development initiatives of the beneficiary communities. The beneficiary communities are those communities located within a radius of 50-km from the IPP's sites of operations. During the site visits to the IPPs, it was discovered that the majority of the EDO fund goes to the Socio-Economic Development (SED) and followed by the Enterprise Development Projects. The IPPs gave evidence on their SED projects as well as their long-term vision and it is imperative to indicate that Bokpoort CSP has been an excellent project to address the Local Economic 

Studies show that investments to spur renewable energy and boost energy efficiency generate far more jobs than oil and coal. 
JEFF GOODELL, "Mitt Romney's Disastrous Energy Plan', Rolling Stone, Sep. 12, 2012
 
Development (LED) challenges within its area of operation. One is proud to mention that Bokpoort CSP has received an award for the African Community Project of the year in the 2014/15 financial year at the Africa Utility Week Industry Awards Ceremony. It has excelled in all aspects targeted for this category, namely: Impact on skills development, contribution to the community from the onset of construction and this really set a new standard for the IPPs. 

Download: The Green Document