Local Value Creation

4th August 2021 by CMIA

Take a look at the International Renewable Energy Agency’s (IRENA) Renewable Energy Benefits: Leveraging Local Capacity series.

The Renewable Energy Benefits: Leveraging Local Capacity series discusses the socio-economic benefits of solar photovoltaics (PV), onshore wind, and offshore wind deployment and assesses associated requirements in terms of skills, materials and equipment in each segment of the value chain. This series of reports also presents recommendations on how to identify areas with the greatest potential for local value creation.

The objective is to allow for an informed feasibility assessment of procuring components and services domestically rather than from abroad. These studies can help decision makers identify ways to maximize domestic value creation by leveraging existing industries, if they choose to do so.

Solar PV

Cumulative investments in solar PV can exceed USD 6.6 trillion by 2050, creating 9.1 million jobs in the process.

56% of labour for solar PV deployment is concentrated in operation and maintenance, while 17% is in installation and grid connection. Driven by policies and declining costs, installation has been soaring in countries such as China and India, resulting in related job creation.

Local materials that can be leveraged for solar PV development include glass, steel, concrete and aluminium.

For a country deploying solar PV, the potential to generate income and create jobs will depend on the extent to which industries along the different segments of the value chain can employ people locally, leverage existing economic activities or create new ones.

Onshore Wind

Cumulative investments in onshore wind can reach USD 6.3 trillion by 2050, creating 3.8 million jobs in the process. 

The labour requirements for onshore wind vary across the value chain, with 43% in operation and maintenance and 30% in installation and grid connection, contributing to local job creation.

Concrete, steel, polymers and fiberglass are the main components used for the development of an onshore wind project.

To assess the case for domestic industry participation in onshore wind farm development, policy makers need to analyse the labour, materials and equipment requirements of each segment of the value chain.

Offshore Wind

The labour requirements vary across the value chain, with 59% in manufacturing and procurement. The manufacturing of equipment offers the bulk of job opportunities in the sector.

Steel, copper, lead and fiberglass are heavily used for the development of an offshore wind project.   

Along the way, ample opportunities arise for local value creation. Local income generation and job creation in the sector can be maximised by leveraging existing economic activities and building domestic supply chains. In particular, offshore wind energy can benefit from the many synergies in skills and occupational patterns that it shares with the offshore oil and gas sector.

Access the full series of reports here: https://bit.ly/Local_Val