Whose Power is it Anyway?

The report argues that the REIPPPP's centralised, top-down approach reproduces structural disempowerment for rural municipalities. Using eMthanjeni Local Municipality as a case study, it finds that local governments are excluded from early planning and procurement, leading to deteriorating infrastructure and minimal revenue gains. While the programme promises 'green jobs' and community development, the report highlights a skills deficit, the prevalence of short-term construction labour over long-term operational employment, and the failure of community trusts to provide immediate relief due to long loan repayment periods. Furthermore, it notes that land lease benefits primarily accrue to white minority landowners, while the municipality struggles with significant debt to Eskom despite hosting renewable energy infrastructure.

• The REIPPPP programme is characterised by a centralised, top-down planning approach that excludes local governments from the initial inception and bidding stages, limiting their role to land acquisition and rezoning.
• Rural municipalities, such as eMthanjeni, face a 'vicious cycle' where they host renewable energy infrastructure but cannot procure power directly from IPPs due to legislation and their own financial instability, specifically debts owed to Eskom.
• The economic benefits of REIPPPP land leases are skewed toward white minority landowners, as IPPs prefer leasing from private owners over municipalities.
• The 'green economy' promise of job creation is undermined by a significant skills deficit in rural areas, leading to a reliance on international experts for high-skilled roles and short-term employment for local unskilled labour during construction.
• Community trusts intended to provide local ownership and socioeconomic development (SED) often fail to deliver immediate benefits because dividends are delayed by IPP loan repayments, which can take six to fifteen years.
• The construction phase of REIPPPP projects caused significant infrastructural damage to municipal roads and increased pressure on water and sanitation systems, without providing the municipality with sufficient revenue or levies to fund repairs.
• In-migration of male workers during the construction phase led to social disruptions in eMthanjeni, including an increase in sexually transmitted diseases, alcohol abuse, and gender-based violence.
• There is a poor alignment between IPP socioeconomic development (SED) plans and municipal Integrated Development Plans (IDPs), with IPPs often ignoring local government's strategic needs in favour of generic social programmes.
• Local SMMEs often struggle to benefit from REIPPPP procurement due to a lack of capital, lack of transparency in bidding, and a tendency for IPPs to use subcontractors from metropolitan centres.

APA

Nzo, T. (2021). Whose Power is it Anyway? Public Affairs Research Institute. https://pari.org.za/wp-content/uploads/2021/09/WEB_20210910_REIPPPP_LocalGov_ThinaNzo.pdf

Chicago

Nzo, Thina. Whose Power is it Anyway? Public Affairs Research Institute, 2021. https://pari.org.za/wp-content/uploads/2021/09/WEB_20210910_REIPPPP_LocalGov_ThinaNzo.pdf.

Wikipedia

{{cite report |last1=Nzo |first1=Thina |title=Whose Power is it Anyway? |publisher=Public Affairs Research Institute |date=September 2021 |url=https://pari.org.za/wp-content/uploads/2021/09/WEB_20210910_REIPPPP_LocalGov_ThinaNzo.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nzo2021whose, author = {Nzo, Thina}, title = {{Whose Power is it Anyway?}}, institution = {Public Affairs Research Institute}, year = {2021}, month = sep, url = {https://pari.org.za/wp-content/uploads/2021/09/WEB_20210910_REIPPPP_LocalGov_ThinaNzo.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }