In 2011, South Africa embarked on the rollout of large-scale renewable energy plants through the Renewable Energy Independent Producer Procurement Programme (REIPPPP). Apart from contributing renewable energy to the national grid, this programme compels independent power producers (IPP) to contribute to community development in the surrounding towns from where their plants are located. Despite substantial amounts of investments by IPPs, a notable gap exists in promoting sustainable development in local communities, particularly in generating long-term employment or providing clean and affordable electricity to local households. Through a multi-scalar assessment of the REIPPPP’s contribution to community development in the first decade, this paper draws attention to crucial changes in the economic development of REIPPPP that have implications for policy development as South Africa transitions towards a new energy dispensation. We review REIPPPP’s contribution to community development in the towns of De Aar, Loeriesfontein and Sutherland, in the Northern Cape province. Using a case study approach for these three towns, this article critically reviews the inception, evolution, and outcomes of selected projects in these towns. We argue for a revaluation of the REIPPPP, stressing the need for tangible benefits to communities hosting these projects. We argue for revising community trusts and socio-economic development programs of IPPs to foster meaningful local participation. Currently, these initiatives treat residents as passive beneficiaries, limiting their engagement and impeding social justice promotion.