Assessing the sustainability of an independent power producer’s social investment in a community: a case study of scatec solar

Date
2017-03
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH SUMMARY : The launch of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in South Africa in August 2011 has meant a positive move towards reaching green economy ideals and has played an important role in realising economic development in rural areas in the country. The purpose of the programme is twofold: to move away from coal-dominated electricity production, thereby reducing carbon emissions, and to contribute to economic development in South Africa. In order to align with the economic development agenda of the government and the parameters of the Broad-Based Black Economic Empowerment (BBBEE) Act (No. 53 of 2003), the REIPPPP has set out parameters within which independent power producers (IPPs) can attain economic criteria through development projects. These criteria include job creation, local ownership, enterprise development (ED), and socio-economic development (SED). This study focuses on the SED component of the REIPPPP and its participatory and sustainable application by IPPs. The case study utilised is SCATEC SOLAR, a Norwegian solar producer, and their Linde solar plant in the Northern Cape of South Africa. The beneficiary community is Hanover, which falls within the 50 km radius of the plant. The study is based on the premise that, if the beneficiary community participates authentically in the development process of the REIPPPP and are empowered and become self-reliant, the programmes have a greater chance of achieving sustainability. This study therefore argues for authentic and empowering community participation through improved methodology by change agents and a greater focus on participation as a means to sustainability. The IAP2 public participation model regarding community participation, as discussed by Theron, Ceaser and Davids (2007:8), can play an important role in the implementation of the SED components of the REIPPPP; and using this level of analysis it is clear that the participation is still at a tokenism level and, although set out with the best intentions, it has not reached an empowering stage. This study adopted a qualitative research method and an evaluative research design, aiming to answer whether the development programme has been implemented sustainably in a participatory manner. Government, development change agents, IPPs and beneficiary communities are all responsible for streamlining the process of community development requirements as set out in the REIPPPP, and for ensuring that communities and their indigenous knowledge systems are valued and utilised. This study reveals that SCATEC SOLAR has not implemented their socio-economic investment in Hanover in an authentic participatory and sustainable manner. The study does however highlight the fact that the initial participatory issues can be rectified and makes recommendations which can be utilised by SCATEC SOLAR and other IPPs in order to ensure the ideals of participatory development for rural communities can be achieved. The study also recommends that further studies be conducted on SCATEC SOLAR’s SED investment after a longer period of implementation has been achieved. This research can assist IPPs in becoming part of the South African participatory agenda already expressed through the Constitution (1996), the National Development Plan (2013) and other legislation.
AFRIKAANSE OPSOMMING : Die bekendstelling van die “Renewable Energy Independent Power Producer” program (REIPPPP) in Suid-Afrika, in Augustus 2011, het gelei tot 'n positiewe stap in die rigting van die bereiking van groen ekonomie ideale en het 'n belangrike rol gespeel in die verwesenliking van die ekonomiese ontwikkeling in die landelike gebiede, in die land gespeel. Die doel van die program is tweevoudig, om weg te beweeg van steenkool afhanklikheid in die opwekking van elektrisiteit en sodoende koolstofvrystellings te verminder en by te dra tot ekonomiese ontwikkeling in Suid-Afrika. Om in te pas by die planne van ekonomiese ontwikkeling van die regering en in lyn met die riglyne van die Breedgebaseerde Swart Ekonomiese Bemagtiging (BBSEB) Wet, het die REIPPPP riglyne uiteengesit waarbinne Onafhanklike Krag Produsente (IPP's) ekonomiese kriteria kan bereik deur middel van ontwikkelingsprojekte. Hierdie kriteria sluit in werkskepping, plaaslike eienaarskap, ondernemingsontwikkeling (ED), en sosio-ekonomiese ontwikkeling (SED). Hierdie studie fokus op die SED komponent van die REIPPPP en sy deelnemende en volhoubare toepassing deur IPP's. Die gevallestudie gebruik SCATEC SOLAR, 'n Noorweegse son produsent, en hul Linde solar aanleg in die Noord-Kaap van Suid-Afrika. Die begunstigde gemeenskap is Hanover, wat binne die 50 km radius van die aanleg val. Die studie is gebaseer op die veronderstelling dat indien die begunstigde gemeenskap in egtheid openheid deelneem in die ontwikkelingsproses van die REIPPPP, en om die begunstigde gemeenskap te bemagtig om selfstandig te word, het die programme 'n groter kans tot sukses. Hierdie studie argumenteer dus vir openheid en die bemagtiging van gemeenskaps-deelname deur middel van verbeterde metodes deur ontwikkelingsagente vir verandering en 'n groter fokus op deelname as 'n manier om volhoubaarheid te beruik. Die IAP2 openbare deelname model met betrekking tot gemeenskapsdeelname soos bespreek deur Theron, Caesar en Davids (2007:8) kan 'n belangrike rol in die implementering van die SED komponente van die REIPPPP speel; en met die gebruik van hierdie vlak van ontleding, is dit duidelik dat deelname nog op tokenisme neerkom. Hoewel met die beste bedoelings het dit nog nie 'n bemagtigende stadium bereik nie. Hierdie studie neem 'n kwalitatiewe navorsingsmetode en 'n evaluerende ontwerp aan, met die oog om te bepaal of die ontwikkelingsprogram volhoubaar is en op ’n deelnemende wyse geimplementeer is. Hierdie studie toon dat SCATEC SOLAR nie hul sosio-ekonomiese belegging in Hanover op 'n outentieke deelnemende en volhoubare wyse geimplementeer het nie. Die studie beklemtoon egter die feit dat die aanvanklike kwessies rondom deelname reggestel kan word en maak aanbevelings wat deur SCATEC SOLAR en ander IPPs gebruik kan word om te verseker dat die ideale van deelnemende ontwikkeling vir landelike gemeenskappe bereik word. Die studie beveel ook aan dat verdere studies oor SCATEC SOLAR se belegging in sosio-ekonomiese ontwikkeling (SED) onderneem word wanneer 'n langer implementeringstydperk verstryk het. Hierdie navorsing kan IPPs help om deel te word van die Suid-Afrikaanse deelnemende agenda soos reeds deur die Grondwet (1996), die Nasionale Ontwikkelingsplan (2013) en ander wetgewing aangedui is.
Description
Thesis (MPA)--Stellenbosch University, 2017.
Keywords
renewable energy independant power producer programme, Environmental economics -- South Africa, Economic development -- South Africa, Rural development -- South Africa, UCTD
Citation