FACT SHEET: NEGOTIATING A SOUTH AFRICAN RENEWABLE ENERGY MASTERPLAN (SAREM)

The Institute for Economic Justice (IEJ) critiques the SAREM draft for lacking definitions of 'decent work', failing to provide a robust framework for monitoring local content compliance, and ignoring the potential for a local recycling industry. The document argues that the current market-led approach risks a 'race to the bottom' on price, which undermines local manufacturing. To counter this, the IEJ recommends aggressive local content requirements (LCRs) of 50% for future public procurement, the use of import tariffs to protect nascent industry, and the provision of low-cost public debt to offset the higher costs of locally produced components. It further advocates for a Technology Transfer System (TTS) to build local technical capacity and the establishment of municipal-level recycling depots for solar PV modules to prevent environmental damage and create jobs.

• The SAREM draft fails to define 'decent work' or establish a monitoring framework to ensure the quality of employment, relying instead on 2019 Integrated Resource Plan job figures that may not reflect the temporary or casualised nature of jobs in the Renewable Energy Independent Power Producer Procurement Programme (REI4P).
• The document argues that the SAREM draft overemphasizes private investment and fails to recognize the transformative potential of public ownership and low-cost public financing to offset the 'premium' cost of locally manufactured components.
• Current trade policy in the SAREM draft focuses on export potential in Africa but lacks analysis of the trade dynamics that hinder local demand capture, such as the dominance of Chinese PV module manufacturers.
• The IEJ contends that the SAREM draft's point-based local content system (70% price, 20% local content, 10% transformation) encourages a 'race to the bottom' that prioritizes low cost over local industrial development.
• While a Technology Transfer System (TTS) was included in the draft following labour input, it lacks a clear definition and is absent from the list of high-priority tasks, risking low-yield activities if not aligned with industrial policy.
• Recycling is entirely omitted from the SAREM draft, despite the significant future employment opportunities and environmental risks associated with the end-of-life management of wind turbines and solar PV panels.
• The IEJ recommends that local content requirements (LCRs) be set at 50% for the next wave of public procurement RFPs, starting with Bid Window 6, and that a schedule of import tariffs for strategic components be published within six months.

APA

Institute for Economic Justice (2022). FACT SHEET: NEGOTIATING A SOUTH AFRICAN RENEWABLE ENERGY MASTERPLAN (SAREM). https://iej.org.za/wp-content/uploads/2022/10/IEJ-SAREM-fact-sheet.pdf

Chicago

Institute for Economic Justice. FACT SHEET: NEGOTIATING A SOUTH AFRICAN RENEWABLE ENERGY MASTERPLAN (SAREM). 2022. https://iej.org.za/wp-content/uploads/2022/10/IEJ-SAREM-fact-sheet.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=FACT SHEET: NEGOTIATING A SOUTH AFRICAN RENEWABLE ENERGY MASTERPLAN (SAREM) |date=October 2022 |url=https://iej.org.za/wp-content/uploads/2022/10/IEJ-SAREM-fact-sheet.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2022fact, author = {{Institute for Economic Justice}}, title = {{FACT SHEET: NEGOTIATING A SOUTH AFRICAN RENEWABLE ENERGY MASTERPLAN (SAREM)}}, institution = {Institute for Economic Justice}, year = {2022}, month = oct, url = {https://iej.org.za/wp-content/uploads/2022/10/IEJ-SAREM-fact-sheet.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }