Lack of local SWH manufacturers 'untenable' - minister

During her budget speech to parliament, she said the intention was to make sure that local procurement, energy efficiency and skills development accords that government concluded under the auspices of the New Growth Path social partners forum had practical meaning, especially in implementing the integrated resource plan and the biofuels strategy.

"While we are recording good progress with the implementation of the solar water heating (SWH) programme," she said, "I need to also indicate that the majority of these systems, particularly the low pressure type that we install in the RDP (Reconstruction and Development Programme) and medium-income residential sectors, are imported." This, Peters said, is "clearly untenable and the time has arrived for us to intervene if we are to make a difference in creating local job opportunities."

As from this year, the minister said, "only those suppliers who commit to localise their [SWH] product will be able to participate in the government-funded subsidy programme." Peters said that her department will be announcing "the details of a new approach to support only those suppliers who install units from manufacturers who commit to bring their factories to South Africa." Welcoming the department's commitment to job creation, The Sustainable Energy Society of Southern Africa (Sessa) said that it is looking forward to seeing a clear medium- to long-term plan, Business Report says.

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