Stipulating higher levels of localisation in the roll-out of solar photovoltaic (PV) solutions in South Africa would increase unit costs by between 6% and 9.5%. However, higher levels of job creation, especially in the manufacturing sector, could offset this downside risk, a new study shows.
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In fact, the report, which was prepared for the Department of Trade and Industry (DTI), the South African Photovoltaic Industry Association (Sapvia) and the WWF-SA, calculates that higher levels of localisation could have an employment multiplier effect of between 40% and 50%, depending on the market segment analysed.
For this reason, Urban-Econ chief economist Elena Broughton, who presented the study’s findings on Tuesday, said it would be worthwhile for policymakers to consider ways of ensuring higher levels of local content across the solar PV value chain, where the main components include the crystalline PV modules, inverters, trackers, wiring and construction.
The findings were made only days ahead of the August 19 closing date for the third bid window under the Department of Energy’s (DoE’s) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), where localisation offerings are expected to emerge as key differentiators in a context where potential developers are vying for a relatively modest PV allocation.
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PrintSend to Friend
2Comments
In fact, the report, which was prepared for the Department of Trade and Industry (DTI), the South African Photovoltaic Industry Association (Sapvia) and the WWF-SA, calculates that higher levels of localisation could have an employment multiplier effect of between 40% and 50%, depending on the market segment analysed.
For this reason, Urban-Econ chief economist Elena Broughton, who presented the study’s findings on Tuesday, said it would be worthwhile for policymakers to consider ways of ensuring higher levels of local content across the solar PV value chain, where the main components include the crystalline PV modules, inverters, trackers, wiring and construction.
The findings were made only days ahead of the August 19 closing date for the third bid window under the Department of Energy’s (DoE’s) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), where localisation offerings are expected to emerge as key differentiators in a context where potential developers are vying for a relatively modest PV allocation.
Read more....
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