WHERE ARE WE NOW?
How to balance government goals such as job creation and localisation with project bankability, quality, and affordable electricity
WHERE DO WE WANT TO BE?
How to unlock small scale renewables with alternative business models to relieve stress on the supply-constrained electricity system?
HOW DO WE GET THERE?
How can municipalities understand and mitigate the potential impact to municipality revenue from renewable energy?
- Determine baseline for local renewable energy industry within international context
- Conduct value chain and localization analysis combining both 2nd & 1st hand industry research including industry interviews
- Develop strengths, weaknesses, opportunities, and threats assessment to inform competitive analysis
- Coordinate workshop with key industry stakeholders to develop and refine support programs for government
Government implemented several of the recommended programs and used project results to create jobs and inform goals for growth of local industry across Africa. Some of the high level recommendations are summarized in the table below.
POTENTIAL SOLUTION (HIGH LEVEL)
Uncertain future demand
Maintain consistent and clear policy support for industry
Complex and costly procurement
Follow through with plans to simplify bidding compliance in future government programmes
Policy uncertainty and delays
Avoid delays where possible, improve communication with industry, and follow-through with commitments to RE industry
Complex licensing process
Remove/limit restrictive licensing requirements on RE projects in pending Electricity Regulation Act 2nd Amendment Bill
GOVERNMENT & PRIVATE SECTOR
Limited exports from and questionable sustainability of local industry
Implement realistic localisation strategy that can be internationally competitive, encourages exports (especially in Africa), and local skills transfer. Consider offering line of guarantees for local companies or projects.
High upfront costs
Encourage and implement alternative business models to reduce upfront costs (e.g. 3rd party ownership & financing)
Unclear market rules & regulations
Implement transparent market rules and regulations that enable electricity sales by customers (e.g. net metering, wheeling)
Utility revenue coupled to electricity sales
Decouple municipality revenue from electricity sales and encourage alternate municipality financing schemes