The Independent Power Producer (IPP) market has the ability to stimulate South Africa’s economic growth and socio-economic development.
These projects will also facilitate job creation, social upliftment and local industry development. However, delivering the skills required for these projects – particularly in rural areas where the renewable generation plants are being developed – can be challenging.
In addition, there is the need to create long-term, sustainable economic development around projects that are temporary in nature.
A Temporary Employment Services (TES) provider can assist on both counts and help to bridge the skills gap to assist with the deployment of IPPs.
The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) introduced designated local content, where 40% of an IPP project’s talent must be sourced locally. This ruling creates an opportunity for our economy, including a positive impact on job creation, since the current REIPPPP bid window 5 is expected to create thousands of jobs, and future bid windows will bring further job opportunities.
However, it also creates challenges for the IPPs. One of the main challenges we face is a shortage of locally available skills, as renewable energy is still new to South Africa.
While there are individuals with the necessary certifications and qualifications, they often do not have experience specifically within the energy and renewable energy sectors.
Furthermore, when it comes to engaging with ward councillors and community leaders, managing these relationships requires dedicated attention and a significant understanding of the South African market and labour force. Contentious issues like wage negotiations can increase the risk of strikes or unrest if they are not expertly managed.
The construction phase of each site requires certain skills only on a temporary or project basis, which can be difficult for an IPP to manage when trying to source the right talent. This includes civil, mechanical and electrical engineering skills, as well as new skills required to work with solar panels and inverters. A reputable TES provider can therefore be beneficial in addressing these challenges.
As one of the challenges is a skills and experience shortage in the renewable energy sector, it is imperative to give job opportunities to those with industry-specific certifications and qualifications as it provides valuable on-the-job skills training and development together with work experience.
This approach will not only ensure we grow our existing labour force to meet our demand for a skilled and experienced workforce for our energy sector, but also to help candidates maximise future employment opportunities.
Commitment to local economic development objectives is vital in assisting IPPs to meet the local content target required by the REIPPPP.
Success lies in partnering with a TES provider with a solid understanding of the renewable energy sector, the South African economic environment and local labour legislation.
) Tania Govender is the sales director of the employment agency Worldwide Staffing.
