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ARTICLE · 05 APRIL 2012

What Is Contained In Local Content Under The Renewable Energy Procurement Programme?

Werksmans Attorneys
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The Department of Energy’s RFPs place great emphasis on local content and aim to ensure that local communities benefit economically from renewable energy facilities.

South AfricaEnergy and Natural Resources
Happy Masondo
Happy Masondo

The Department of Energy's RFPs place great emphasis on local content and aim to ensure that local communities benefit economically from renewable energy facilities.

In the Request for Proposals (RFP) issued by the Department of Energy (DOE) to Independent Power Producers (IPPs) as well as in a total of nine briefing notes (issued as clarifi cation points on the RFP), great emphasis has been placed on local content requirements. In setting out the specific prescripts for all project developers submitting proposals under the RFP to comply with the local content requirements, the DOE achieves many objectives beyond the mere production of energy from renewable sources.

The DOE has found an ingenious mechanism through which it can also ensure that there are economic benefits flowing through to the communities in which the renewable energy facilities are located. Compliance by the project developers with the requirements of local content promises to give effect to

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