Evaluating economic impacts of utility scale solar photovoltaic localisation in South Africa

ABSTRACT

The localization process seeks to ensure that the production of particular components occurs from local companies, thus restricting manufacturing to local firms. Solar Photovoltaic (PV) panels localization can stimulate regional economic development in coal phase-out regions. This paper uses the Jobs and Economic Development Impact (JEDI) model to assess the economic impact of enhanced solar PV localization and further analyses enhanced solar PV Local Content Requirements (LCRs) scenarios. The study determined that the optimization of LCRs has a positive influence on employment and Gross Domestic Product (GDP) under the considered timeframes (2020−2030). Specifically, the study found that a total of Full-Time-Equivalent (FTE) jobs that would be created by a 100% LCRs will be 249 315 over 10 years. An 80% LCRs scenario projected that a total of 219 513 jobs will be created while the overall economic impact is estimated to be USD 74 975, 248.43 over 10 years.

KEYWORDS:

• Employment
• energy transition
• localization
• coal phase-out
• solar PV
• local content

Acknowledgments

The authors would like to acknowledge the CSIR Young Researchers Establishment Fund (YREF) for supporting this research. The views expressed in this paper are those of the authors and do not represent the views of the affiliated organization.

Notes

¹ The RETScreen Clean Energy Management Software (usually shortened to RETScreen Expert).