• Go Green

Increasing local content and manufacturing capacity of SWH collector components

Climate- and environmentally-friendly production standards and competitive generation of electrical energy will have positive impacts on the creation of new jobs, as well as on the preservation and quality of existing jobs. Thus, the South African-German initiative Skills for Green Jobs (S4GJ) aims to improve the conditions for the supply of adequately skilled personnel and energy efficient technologies. Appropriate skills and technology solutions are both critical success factors for the establishment of a green economy.

However, due to insufficient cooperation and capacity constraints of both public and private key players, implementation power for green economy interventions is currently limited. The S4GJ initiative therefore provides support measures for public and private key players to develop and improve coordination mechanisms for such interventions. This is carried out in a practical, visible and replicable manner through experiential learning projects (ELPs), which use applied technology transfers for localisation advancements in renewable energy sectors, for example by increasing local content of solar water heating (SWH) collector components.

Rationale and problem statement:

The South African government has approved an ambitious approach to revive the National Solar Water Heating Programme (NSWHP). The programme is largely driven by the country’s developmental imperatives with specific focus on increasing local manufacturing capacity, job creation and skills development. For public sector procurement the government stipulated a 70% local content threshold requirement for the two main components of SWH systems, i.e. the collector panel and the storage tank, aiming to increase local manufacturing capacity for SWH systems. Subsequently, fully imported collectors or tanks will not qualify under government procurement requirements, for example under the NSWHP.
According to the South African Bureau of Standards (SABS), there are currently only a small number of companies who are potentially  in line with the stipulated local content requirement for tanks and collectors, and they exhibit rather limited production capacity. The Skills for Green Jobs (S4GJ) initiative is already supporting the government’s endeavours around the NSWHP, for example through crucial skills development to ensure better quality installations of SWH appliances, and supporting activities which increase local manufacturing capacity for SWH systems is an important interface and will create significant synergies.

For further Information contact:
GIZ | Skills for Green Jobs (S4GJ)
Email:    S4GJ@giz.de
T:    +27 (0)12 423 5980

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