Oversight concerns deepen as allegations mount around labour violations at Engie led Oya solar hybrid project in South Africa

• Reports point to labour violations, safety failures and environmental damage at a major RMIPPPP project.
• Questions raised over enforcement of local content and economic development obligations.
• Growing scrutiny on role of authorities in monitoring compliance across renewable energy procurement programmes.

South Africa’s renewable energy sector is facing renewed pressure as serious allegations emerge around the Oya Energy Hybrid Facility, one of the most prominent projects awarded under the Risk Mitigation IPP Procurement Programme (RMIPPPP). The situation is sharpening industry concerns about the effectiveness of oversight by the IPP Office and the Ministry of Electricity and Energy in enforcing compliance across both the RMIPPPP and the Renewable Energy IPP Procurement Programme (REIPPPP).

This follows similar allegations of widespread regulatory breaches at Red Rocket led Virginia Solar Park in the Free State. Read more

The Oya project, a 128 MW dispatchable renewable facility located between Ceres and Sutherland, has been positioned as a landmark development combining 155 MW of solar PV, 86 MW of wind and a 94 MW or 242 MWh battery energy storage system. Backed by a consortium led by ENGIE alongside G7 Renewable Energies, Meadows Energy and Perpetua Investment Holdings, the project reached financial close in February 2024 and is targeting commercial operation in H2 2026. The primary EPC contractors are Power China and Synohydro.

Despite its technical ambition and scale, the project is now at the centre of controversy following investigative reporting by News24 journalist Ethan van Diemen, which details a series of alleged compliance breaches linked primarily to on-site construction activities.

Among the most serious claims are accusations that Sinohydro employed undocumented Chinese workers without valid permits, raising concerns about illegal imported labour practices. Such allegations directly contradict RMIPPPP requirements, which mandate prioritisation of local employment and skills development within host communities.

Reports further suggest that some workers have been subjected to poor living conditions and limited access to protections under South African labour law. These issues, if substantiated, would represent significant violations of both national regulations and contractual economic development commitments tied to the project.

Safety performance at the site has also come under scrutiny. At least seven workers reportedly died in a vehicle accident associated with project logistics, while additional incidents remain under investigation. Allegations of inadequate safety controls and oversight have prompted concerns about whether occupational health and safety standards are being sufficiently enforced by contractors and monitored by authorities. Claims of sexual harassment on site have added to the severity of the situation, raising broader human rights concerns.

Environmental management practices have likewise been questioned. Community members in the Karoo region have reported damage to local infrastructure, particularly roads impacted by heavy construction traffic, alongside concerns about adherence to environmental authorisations. These issues highlight potential gaps between approved environmental management plans and actual implementation on the ground.

The controversy is particularly significant given the project’s binding Economic Development obligations under the RMIPPPP. These include strict local content thresholds, job creation targets and socio economic development commitments within a 50 km radius. While the consortium structure reflects strong South African ownership, with local partners holding a combined 45% stake, critics argue that compliance must extend beyond shareholding to measurable outcomes in procurement, employment and community impact.

Industry stakeholders are increasingly questioning whether the IPP Office and the Ministry of Electricity and Energy have the capacity and mechanisms in place to adequately monitor and enforce these obligations. While compliance reporting frameworks exist, enforcement and public transparency remain limited, contributing to perceptions of regulatory gaps.

As South Africa continues to depend on independent power producers to address its energy transition, the integrity of its procurement programmes is under the spotlight. The unfolding situation at Oya is likely to intensify calls for stricter oversight, improved transparency and more decisive enforcement to ensure that renewable energy projects deliver not only clean power, but also tangible economic and social benefits in line with national policy objectives.

Author: Bryan Groenendaal