Corporate Management of Host Communities in Renewable Energy Infrastructure Projects in South Africa

Engaging in a just energy transition implies the equitable participation of all stakeholders. The successful development of renewable energy infrastructure projects relies on a strong social support. Companies must implement ambitious community engagement practices to gain a social license to operate (SLO) and, thus, mitigate social acceptance risks. This study aims at investigating the interactions between involved companies and host communities of such projects in South Africa, where firms must engage in local economic development activities. It focuses on the construction phase of third-party EPC projects (when Engineering, Procurement and Construction services are offered by an actor that is not the original developer). Based on a comprehensive literature review, field research was conducted. Thorough observations were recorded. Questionnaire surveys were disseminated to the company’s employees and local workers. Semi- structured interviews and discussions were conducted with...Show moreEngaging in a just energy transition implies the equitable participation of all stakeholders. The successful development of renewable energy infrastructure projects relies on a strong social support. Companies must implement ambitious community engagement practices to gain a social license to operate (SLO) and, thus, mitigate social acceptance risks. This study aims at investigating the interactions between involved companies and host communities of such projects in South Africa, where firms must engage in local economic development activities. It focuses on the construction phase of third-party EPC projects (when Engineering, Procurement and Construction services are offered by an actor that is not the original developer). Based on a comprehensive literature review, field research was conducted. Thorough observations were recorded. Questionnaire surveys were disseminated to the company’s employees and local workers. Semi- structured interviews and discussions were conducted with company’s representatives, local workers, and other community members. A comparative case study approach is adopted to evaluate corporate management strategies. Two projects located in the North West province, Bokamoso and Waterloo Solar Parks, and overseen by the same EPC company, are analyzed. The SLO concept is utilized to assess actual community responses and frame elements of corporate management that might have influenced the positive observed levels of SLO. Results show that: • There is a slight mismatch between the reality on site and its perception by the company. • The company maintains a negative approach to communication, both internally and externally, which negatively influenced local communities’ responses. • Community responses are also shaped by external factors that the company acknowledges but difficultly navigates. These results suggest that host communities and local rules of the game should be better understood by corporate proponents. Practical recommendations to improve community engagement and better mitigate social acceptance risks in renewable energy infrastructure projects, solely during the construction phase, in South Africa are offered.Show less

Leiden University Student Repository

Documents

In Collections

Corporate Management of Host Communities in Renewable Energy Infrastructure Projects in South Africa