In response to a question from Bizcommunity during a press conference on the closing day of Windaba 2024, Minister of Electricity and Energy, Kgosientsho Ramokgopa, reaffirmed his department’s commitment to increasing local content in South Africa’s renewable energy sector. Ramokgopa acknowledged the shortcomings in previous renewable energy bidding rounds, where local content requirements were often deprioritised due to concerns around commercial viability.
Minister Ramokgopa fields question in the Windaba media conference alongside Sawea CEO Niveshen Govender
“We are committed to ensuring that local communities have meaningful participation,” said Ramokgopa.
“One of the biggest critiques around the previous bidding windows has been on the issue of local content.”
“We are working closely with other departments, including the Ministry of Trade, Industry and Competition, to address this in the upcoming investment cycles.”
Ramokgopa said that the goal is not only to add megawatts to the grid but also to create a positive impact for local communities, particularly through skills development and technology transfer.
This approach, he said, would create opportunities for industrialisation and help South Africa build a more sustainable energy industry.
Balancing act
According to the minister, his department is focused on achieving a delicate balance: increasing local content while ensuring the financial viability of renewable energy projects.
This would involve regular consultations with industry stakeholders, including developers and the Independent Power Producer (IPP) office, led by Bernard Magoro.
“We have invested a lot of time engaging with the industry and we have found common ground on many issues,” he added.
Ramokgopa also highlighted the need for a more predictable and consistent renewable energy programme to build trust and momentum.
“One of the shortcomings previously was the stop-start nature of the programme, which hampered investment and local industry growth,” he noted.
Build a conducive environment
When asked about policies to encourage local intellectual property (IP) in renewables and knowledge sharing, Ramokgopa reiterated the importance of creating a conducive environment for local innovations.
He hinted at a new policy framework aimed at supporting South African developers and ensuring that local firms are at the forefront of the country’s green energy transition.
“We are looking at how best we can ensure local developers not only contribute to new projects but also benefit from them,” he explained.
“The idea is to avoid a situation where foreign entities dominate the market and local companies are left out.”
Regional superpower
He concluded by focussing South Africa’s strategic advantage as a partner for renewable energy projects on the continent.
“We have a natural affinity with our neighbouring countries, and that positions us to lead in the development of renewable energy across Southern Africa,” he stated.
As the government prepares to roll out the next phase of its renewable energy programme, Ramokgopa’s remarks suggest an increased focus on growing capabilities within the country that will help unlock economic opportunities within the energy transition.
