REIPPPP Economic Development obligations
Communities living close to REIPPPP solar PV projects will benefit from the existence of these projects over the next 20 years as Government requires these projects to engage with the social and economic needs of these local communities. The industry embraces this opportunity to support the alleviation of poverty and inequality with enthusiasm and optimism as each project invests funds into socio-economic development (SED) initiatives and/or enterprise development (ED) programmes.
In essence, each solar PV project has to engage with local development in communities that are located within a 50km radius around the project site. The policy requires that each solar (or wind/hydro or biomass) project has to invest between 1-1.5% of its total project revenue into socio-economic development programmes. Projects can also choose to invest up to 0.7% of the revenue into measures supporting enterprise development. A third requirement is that each solar project shares ownership with local communities. Most projects fulfil this by allocating shares to a community trust representing local residents.
In summation, there are plenty of meaningful and impactful activities underway in support of community development around the REIPPPP and we encourage you to explore the projects showcased on this page.
*Examples of SED projects showcased on the page to be supplied by SAPVIA members.