S Africa wind farms to bring USD 634m for local economic development

Nov 4, 2014 - Wind projects in South Africa will bring over ZAR 7 billion (USD 634m/EUR 506m) in revenues to communities and investments in socio-economic development over 20 years, the South African Wind Energy Association (SAWEA) says.

These calculations are based on current wind capacity allocations only, the organisation said on Monday. At present, there are five operational wind farms in the country, 22 under construction and 700 MW to be awarded in new tenders. This will translate into a total capacity of some 2,684 MW.

SAWEA pointed out that there will be more large wind projects through 2030, which means more funds for local communities.

Under South Africa’s Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), utility-scale wind parks have to spend a certain percentage of their revenues on socio-economic development and sometimes enterprise development in the surrounding areas. Also, residents living within a 50-km (31-mile) radius get shares in the wind farm project companies. In both cases, the benefits are received for 20 years.

At its annual conference Windaba, running in Cape Town November 3-5, SAWEA is focusing on the subject of working with communities and how funds from wind projects can be most effectively invested.

(ZAR 10 = USD 0.905/EUR 0.723)

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