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Social Impact Assessment: Installation of Solar Photovoltaic Power Plant at Arnot Coal Fired Power Station

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Social Impact Assessment: Installation of Solar Photovoltaic Power Plant at Arnot Coal Fired Power Station Social Impact Assessment: Installation of Solar Photovoltaic Power Plant at Arnot Coal fired Power Station a1 z Social Impact Assessment for the Installation of Solar Photovoltaic Power Plant at Arnot Coal fired Power Station May 2015 Prepared for: Prepared by: Page 1 Social Impact Assessment: Installation of Solar Photovoltaic Power Plant at Arnot Coal fired Power Station EXECUTIVE SUMMARY ILISO Consulting (Pty) Ltd was appointed by Eskom Holdings SOC Limited as the lead consultants to manage the Environmental Impact Assessment (EIA) process for the establishment of the proposed photovoltaic (PV) power plant and associated infrastructure at the premises of Arnot Power Station within the Mpumalanga Province. Kayamandi Development Services (Pty) Ltd has been appointed as sub-consultants by ILISO Consulting (Pty) Ltd to undertake the social assessment for the proposed Solar Photovoltaic (PV) Power plant on behalf of Eskom Holdings SOC Limited. The purpose of this assessment is to analyse all the factors in order to provide an unbiased assessment of the potential social impacts of the proposed installation of Solar Photovoltaic (PV) Power Plant at Arnot Power Station, in Mpumalanga. The report presents the potential prospects and constraints that would arise as a result of the implementation of this project. Arnot Power Station in Mpumalanga, South Africa, is a coal-fired power plant operated by Eskom. The Power Station is situated in the Steve Tshwete Local Municipality (LM) that falls under the Nkangala District Municipality (DM) of the Mpumalanga Province. The Arnot Power Station and associated cooling towers are a prominent feature within the landscape which engenders an industrial component to the landscape. The southern and south-western regions of the Nkangala DM form part of an area known as South Africa’s energy Mecca because of the vast amounts of coal and coal- produced power in the region. Socially, the Municipality is found to have the following general characteristics: Mining activities contribute significantly to local economic production A large percentage of the population is living on the poverty line as a result of high unemployment rate, low levels of education and skills, and low income levels, on par with that of the country as a whole The nearby Rietkuil settlement and the Rietkuil mine hostels is situated within the immediate vicinity Surrounding land uses are mostly mining and agriculture Solar energy production is supported by policy and local planning environment and the LM considers it critical to create energy that considers renewable and non-renewable energy sources A summary of the social impacts and their significance, pre and post mitigation are set out below. WITHOUT WITH MITIGATION MITIGATION IMPACTS PHASES Planning Planning Planning Operational Operational Construction Construction Decommissioning Decommissioning New business sales, multipliers and economic L M L L M L stimulation Employment and skills transferral L M L N L M L L In-migration on social dynamics and pressure on services L L/N Health, safety and security L L L/N N Page i Social Impact Assessment: Installation of Solar Photovoltaic Power Plant at Arnot Coal fired Power Station WITHOUT WITH MITIGATION MITIGATION IMPACTS PHASES Planning Planning Planning Operational Operational Construction Construction Decommissioning Decommissioning Nuisance, noise, and change in quality of living L L environment Change in visual, land use patterns, and sense of space M M L L L L Impact on Arnot residents M M L M L Agricultural compatibility L L/N L L L/N L Development of clean renewable energy M M From a social perspective it is concluded that both positive and negative social impacts have been identified. With regards to site alternatives, from a social perspective, site alternative 3 is slightly preferable in that its location provides the least negative impacts. However, site 3 also provides by far the least positive impacts. The positive impacts are identified as outweighing the negative impacts, which is why site 1 is preferred. Should edusec be completely demolished perhaps site 1 offers the best alternative, especially since it could either utilise greater space with potentially greater positive impacts, or it could utilise the edusec space instead of the northern tip of site1 so that the activity is not directly adjacent Arnot residents. The project involves no sacrifice of agricultural productive capacity and provides a significant source of additional income while introducing relatively minimal risks with adequate mitigation. Minimal negative impacts are anticipated on tourism and other activities on surrounding farms, although all activities will be able to continue as at present. The assessment of the key issues indicated that there are no negative impacts that can be classified as fatal flaws and which are of such significance that it cannot be successfully mitigated. Stated differently, the proposed development is unlikely to result in any permanent damaging social impacts. Based on the social assessment, the following general conclusions and findings can be made: The potential negative social impacts associated with the construction phase are typical of construction related projects. The construction related activities that have the potential to cause social impacts are mostly of a low magnitude and can be reduced with the implementation of the mitigation measures proposed. The potential negative impact associated with the operation phase is that the Solar Energy Facility could have a moderate impact on residents or Arnot. New business sales and employment opportunities will be created in the construction and operation phase and the impact is rated as positive even if only a relatively few individuals, possibly not locals from the immediate surroundings, will benefit in this regard. The proposed project has the potential to assist the local South African economy in creating entrepreneurial development, albeit very limited, especially if local business could be involved in the provision of general material and services during the construction and operational phases. Page ii Social Impact Assessment: Installation of Solar Photovoltaic Power Plant at Arnot Coal fired Power Station The proposed development also represents an investment in infrastructure for the generation of clean, renewable energy, which, given the challenges created by climate change, represents a positive social benefit for society as a whole. When considering the overall costs and benefits of the project it is found that the latter is more prominent allowing for the achievement of a net benefit. With respect to risks and negative impacts, these should prove relatively low with mitigation, with the exception of the construction phase impact on Arnot residents. The aforementioned should however prove acceptable provided adequate mitigation is put in place. It is therefore recommended that the proposed Solar PV plant be supported, subject to the implementation of the recommended enhancement and mitigation measures contained in the report. In other words, in terms of the potential social impacts arising from the project, it is found that there is no obvious reason for the competent authority to reject the application on social grounds. Page iii Social Impact Assessment: Installation of Solar Photovoltaic Power Plant at Arnot Coal fired Power Station TABLE OF CONTENTS ACRONYMS ABBREVIATIONS GLOSSARY 1. Introduction .......................................................................................................................... 1 1.1 Study objective .............................................................................................................................. 1 1.2 Project Location ............................................................................................................................. 1 1.3 Project background description .................................................................................................... 4 1.4 Report structure ............................................................................................................................ 5 2. Study approach, assumptions and limitations ........................................................................ 6 2.1 Introduction to social impact assessments ................................................................................... 6 2.2 Methodology and processes ......................................................................................................... 6 2.3 Assumptions and limitations ......................................................................................................... 9 3. Baseline description of social environment .......................................................................... 11 3.1 Delineation of study area ............................................................................................................ 11 3.2 Social status quo .......................................................................................................................... 11 3.3 General description of local study area and immediate surroundings ....................................... 21 3.4 Policy and planning environment ................................................................................................ 26 3.5 Summary of key baseline findings ............................................................................................... 30 4. Social impact assessment and mitigations
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