Abstract
This research has aimed to evaluate the benefits and challenges of localising wind renewable energy value chains in South Africa. The localisation of renewable energy value chains in South Africa, especially through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), is a vital component of the country’s broader industrial policy. Understanding the role of the public and private sector linked to localisation can help policymakers, businesses and stakeholders to optimise the economic benefits of renewable energy projects while strengthening domestic manufacturing capabilities. The research employed a firm-level case study of local manufacturers involved in the REIPPPP in various roles in the manufacturing value chain to illustrate the contributions of both the public and private sectors to the localisation of renewable energy. Data were collected using a semi-structured interview schedule, and results were analysed using the thematic analysis method. The results of the research indicate that localisation effects under the REIPPPP framework were positive at the beginning of the programme from bidding window 1 to 3 between 2011 and 2015. Further investigation revealed that the consistent changes in socio-economic development (SED) criteria driving localisation in the REIPPPP resulted in policy uncertainty and disincentives for industry to localise production of renewable energy products. The results further provide policy recommendations in redesigning an integrated localisation policy in a forward-looking approach.