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South Africa - Sere Wind Farm Project - Project Completion Report
The Development Objective (DO) as stated in the RFL at appraisal/approval was to facilitate accelerated development of large scale renewable energy capacity in support of the long-term carbon mitigation strategy of South Africa. The DO was formulated to be relevant and consistent with the Government of South Africa’s strategic thrust of migrating to a low carbon growth economy as outlined in its long-term mitigation strategy. In 2010, the government launched the New Growth Path Framework, to respond to the severe economic downturn of the late 2008 and sought to accelerate technological change for a jobs-creation oriented economy with a target of 5 million jobs economy-wide. The Framework counted on investments being made through the policy-adjusted Integrated Resource Plan (2010-2030) for electricity, which foresaw near doubling of generation capacity by 2030 with 42% coming from renewable energy sources, and 23% from nuclear power, and thus reduce the contribution of coal in the power generation mix, and in consistency with the green growth strategy. Eskom also recognized the imperative to diversify its existing generation fleet to reduce the impact on the environment and ensure a low-carbon future. The DO was equally relevant to the Bank’s updated Country Strategy Paper 2008-12 for South Africa, which was underpinned by the country’s Medium-Term Strategic Framework. The DO is relevant to Pillar 1 of the three pillars of the CSP, which focused on (i) support for improved infrastructure service provision; and (ii) financial intermediation for private sector development. Since appraisal/ approval of the Sere Wind Farm Project, significant progress has been accomplished by Government and Eskom in expanding the role of renewable energy resource in the power generation mix through the implementation of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP). Whilst this project resulted in the creation 400 temporary and 9 permanent jobs, the REIPPP programme went on to create 23,000 permanent jobs as of June 2016.