South Africa’s First Offshore Wind Farm Delayed as Massive Renewable Energy Potential Comes Into Focus

JD GLOBAL MEDIA | SOUTH AFRICA
Published: 19 September 2026

South Africa's plans to develop its first major offshore wind farm have encountered a delay, but new research has simultaneously highlighted the enormous potential the country has to generate electricity from wind resources along its coastline.

The proposed 800-megawatt Gagasi offshore wind project, planned off the coast near Richards Bay in KwaZulu-Natal, has experienced a setback after the environmental impact assessment process stalled while developers work on providing new technical information.

The development represents an important moment for South Africa's energy transition.

On one side is a project that was expected to help establish offshore wind as a new component of the country's electricity system.

On the other is a newly released strategic assessment indicating that South Africa could have the potential to develop approximately 95 gigawatts of offshore wind capacity across selected coastal areas.

The scale of that potential is significant when compared with the size of individual renewable-energy projects currently being developed in the country.

The World Bank's new strategic framework for offshore wind development examines the opportunities and challenges involved in establishing an offshore wind industry in South Africa.

Its findings indicate that offshore wind could eventually contribute to electricity generation, industrial development, employment, investment and emissions reduction.

But the development of such an industry will not happen immediately.

South Africa would need significant investment in ports, transmission infrastructure, manufacturing capacity, specialised vessels, skills, environmental assessment, regulation and financing.

The delay affecting the Gagasi project therefore illustrates some of the challenges that could determine how quickly South Africa can turn its offshore wind potential into operating power stations.

THE GAGASI PROJECT AND WHY IT MATTERS

The Gagasi offshore wind project was launched in 2022 by GenesisHexicon, a joint venture involving Swedish company Hexicon and South Africa's Genesis Eco-Energy Developments.

The project was proposed as an 800 MW offshore wind farm located off the coast of Richards Bay.

Its development has attracted attention because it could become one of the first major projects demonstrating the commercial potential of offshore wind generation in South Africa.

Unlike conventional onshore wind farms, offshore projects place turbines in the ocean where wind conditions can be stronger and more consistent.

However, offshore wind is also considerably more complex.

Developers have to deal with marine ecosystems, shipping routes, fishing activities, seabed conditions, port infrastructure, subsea cables and much more demanding construction conditions.

The project therefore requires detailed technical and environmental assessments before construction can begin.

The latest setback concerns that assessment process.

The consultancy appointed to undertake the environmental work has confirmed that the study has stalled while new technical information is awaited from the developers.

The environmental authorisation application was previously withdrawn while the project design was being reconsidered.

The change was related to the proposed turbine foundation technology.

The original concept involved floating wind turbines, while the redesigned project is moving towards anchored or fixed turbines.

That technical change is important because the type of foundation affects the engineering requirements, seabed interaction, construction process and environmental assessment.

WHY THE ENVIRONMENTAL ASSESSMENT IS IMPORTANT

Environmental assessments are a critical part of major infrastructure projects.

An offshore wind farm cannot simply be placed in the ocean because a suitable area has strong winds.

The developers must understand how construction and operation could affect marine life, fisheries, shipping, coastal ecosystems and other ocean users.

The assessment process can involve studies of birds, marine mammals, fish, seabed conditions, underwater noise and other environmental factors.

It can also require consultation with communities and industries that depend on the ocean.

Fishermen, shipping companies, conservation organisations, coastal communities and other stakeholders may have concerns about how a large offshore installation could affect their activities.

For developers, this process can take considerable time.

The objective is to identify potential environmental and social risks and determine how they can be avoided, reduced or managed.

A delay therefore does not necessarily mean that a project has been cancelled.

In the case of Gagasi, the available information indicates that the environmental process has been affected by changes in the technical design and the need for additional information.

The project developers are expected to provide further information as the project progresses.

THE WORLD BANK’S NEW WARNING AND OPPORTUNITY

The timing of the Gagasi delay is significant because the World Bank has just released a strategic framework examining offshore wind development in South Africa.

The study was disclosed in September 2026 and examines how the country could establish an offshore wind industry over the short and long term.

The assessment identifies substantial potential along South Africa's coastline.

According to the study, selected coastal areas could provide approximately 95 GW of offshore wind potential, much of it associated with floating offshore wind technology.

That figure does not mean that South Africa will build 95 GW of offshore wind capacity.

It represents potential rather than an approved construction programme.

Turning technical potential into actual power generation requires suitable project locations, investment, environmental approval, transmission capacity, electricity demand and commercially viable financing.

Nevertheless, the figure demonstrates why international institutions and energy developers are paying increasing attention to South Africa's coastline.

WHY SOUTH AFRICA HAS OFFSHORE WIND POTENTIAL

South Africa's coastline stretches for thousands of kilometres along the Atlantic and Indian oceans.

The country therefore has access to substantial marine wind resources.

In some coastal areas, wind conditions can be strong enough to support large-scale electricity generation.

Offshore wind also offers an important advantage over some land-based developments.

The ocean provides much more space for large projects.

On land, renewable-energy developers may encounter competing demands involving agriculture, settlements, conservation areas, mining and other activities.

Offshore development can potentially provide access to areas where large wind farms can operate without occupying agricultural land or heavily populated areas.

But offshore projects create their own challenges.

The ocean is not an empty space.

It supports fisheries, shipping, tourism, conservation and other economic activities.

Responsible planning therefore becomes essential.

FLOATING WIND COULD BE PARTICULARLY IMPORTANT

One of the most interesting elements of South Africa's offshore wind potential is the role of floating technology.

Traditional offshore wind turbines are often installed on foundations fixed directly to the seabed.

This is generally easier in relatively shallow waters.

South Africa's coastline includes areas where water becomes deep relatively close to shore.

Floating technology allows turbines to be positioned in deeper water.

Instead of being permanently fixed to the seabed through a conventional foundation, the turbine is mounted on a floating platform that is anchored to the seabed.

This technology is more complex and remains less established commercially than fixed-bottom offshore wind.

However, it could open much larger areas of ocean to development.

The World Bank's assessment therefore places substantial emphasis on floating offshore wind when examining South Africa's long-term potential.

WHY THE GAGASI DESIGN CHANGE IS SIGNIFICANT

The Gagasi project originally involved floating technology but was later redesigned towards an anchored or fixed approach.

The change was described as being driven by technical considerations rather than environmental concerns.

That distinction matters.

It means that the project is not necessarily being delayed because authorities have determined that offshore wind is environmentally unacceptable.

Instead, developers are reconsidering how the project should technically be constructed.

Large infrastructure projects frequently evolve during the development process.

Technology changes.

Costs change.

Engineering studies provide new information.

Developers may discover that one construction method is more practical than another.

A project that begins with one design can therefore eventually emerge in a different form.

For Gagasi, the redesign means the environmental authorisation process must take the revised technical proposal into account.

THE POTENTIAL IMPACT ON SOUTH AFRICA’S ELECTRICITY SYSTEM

South Africa's electricity system has been undergoing major changes.

For years, coal-fired power stations have supplied most of the country's electricity.

Renewable energy has increasingly become part of the generation mix, particularly through solar and onshore wind projects.

Offshore wind could eventually add another source of large-scale renewable electricity.

One potential advantage is diversification.

An electricity system that depends on several different generation technologies can be more resilient than one heavily dependent on a single source.

Wind resources can complement solar generation because wind production does not necessarily follow the same daily pattern as solar power.

Solar generation is strongest during daylight hours.

Wind generation can occur during the day or night, depending on local wind conditions.

Combining different renewable resources can therefore help create a more diversified electricity system.

However, renewable energy still requires transmission infrastructure and appropriate system management.

Electricity generated offshore has to reach consumers.

That means cables, substations and transmission networks become essential components of the project.

TRANSMISSION COULD BECOME A MAJOR CHALLENGE

Building wind turbines at sea is only part of the problem.

Developers also need to connect those turbines to the national grid.

South Africa's electricity transmission network has areas where additional capacity is required to accommodate new generation.

Offshore wind projects could therefore require substantial transmission investment.

Subsea cables would transport electricity from offshore installations to coastal connection points.

From there, electricity would enter the wider grid.

The location of the wind farm becomes important.

A project located far from strong transmission infrastructure may require additional investment.

This means offshore wind development cannot be considered separately from the country's broader electricity-grid expansion programme.

The success of the industry will depend partly on whether generation and transmission planning progress together.

PORTS WILL PLAY A CRITICAL ROLE

An offshore wind industry also requires suitable ports.

Large turbine components cannot simply be transported to the coastline and assembled without specialised facilities.

Turbine blades are enormous.

Tower sections are large.

Foundations and floating platforms can be extremely heavy.

Specialised vessels may be required to transport and install components.

South Africa's existing ports could potentially play a role in the emerging industry, but significant upgrades may be necessary.

This creates another potential economic opportunity.

If port infrastructure is developed to support offshore wind, it could create demand for construction, engineering, logistics, fabrication and maintenance services.

Ports could eventually become industrial hubs for the offshore renewable-energy sector.

THE OPPORTUNITY FOR SOUTH AFRICAN MANUFACTURING

One of the biggest questions surrounding offshore wind is how much of the economic value can be retained within South Africa.

If most turbine components are imported and installed using foreign companies and vessels, the local economic benefit would be more limited.

But if South African companies develop the capability to manufacture or assemble some components, the sector could create a broader industrial base.

Potential opportunities include steel fabrication, electrical equipment, cables, marine services, engineering, construction, maintenance and logistics.

The World Bank's strategic framework considers the potential economic benefits of developing an offshore wind sector rather than simply looking at electricity generation.

That is important because an energy transition can become an industrial-development opportunity.

South Africa already has experience in steel, engineering, mining and large infrastructure projects.

Some of these capabilities could potentially be adapted to support offshore wind.

JOBS COULD BECOME AN IMPORTANT BENEFIT

The offshore wind industry could create employment across several stages.

During development, engineers, environmental specialists, surveyors, legal professionals and project managers may be required.

Construction would create demand for skilled workers in fabrication, electrical systems, marine operations and civil engineering.

Ports could require additional workers.

Specialised vessels would require crews.

Once turbines are operating, maintenance teams would be needed.

The World Bank has estimated that large-scale offshore wind development could generate substantial employment income in South Africa over the coming decades.

However, the number of jobs ultimately created would depend on how much of the industry is developed locally.

Training would therefore be essential.

South Africa would need people with specialised offshore engineering and marine-energy skills.

Universities, technical colleges and industry training programmes could play a role in preparing workers for these opportunities.

THE PROJECT COULD ALSO SUPPORT COASTAL ECONOMIES

Richards Bay is already an important industrial and port centre.

An offshore wind industry could create additional economic activity around the region.

Companies involved in engineering, logistics, fabrication, marine services and maintenance could potentially establish operations near the port.

Local businesses could benefit from increased demand for accommodation, transport, catering and other services.

However, the scale of these benefits would depend on how the project is structured and how much local procurement takes place.

The broader economic effect would be stronger if local companies can participate in the supply chain.

This is one reason why policymakers are looking beyond individual power projects toward the creation of a wider offshore wind industry.

FISHING AND MARINE ACTIVITIES MUST BE CONSIDERED

Offshore wind development also raises questions about existing ocean users.

South Africa's coastline supports fishing communities and commercial fishing operations.

The ocean is also used by shipping and other marine activities.

Wind turbines, cables and construction zones could potentially affect some activities.

Developers therefore need detailed mapping and consultation.

The aim is to identify conflicts early and determine whether projects can coexist with existing economic activities.

In some circumstances, fishing may remain possible between turbine structures, depending on safety rules and project design.

In other areas, restrictions may be necessary during construction or operation.

These issues must be addressed through technical studies and consultation rather than assumptions.

MARINE ENVIRONMENTAL PROTECTION WILL REMAIN CENTRAL

Offshore wind is generally considered a low-carbon source of electricity, but that does not mean it has no environmental impact.

Construction can disturb seabed environments.

Underwater noise can affect marine species.

Cables interact with marine environments.

Birds and other wildlife can interact with turbines.

These potential effects must be studied and managed.

Environmental assessment therefore remains a fundamental part of responsible offshore wind development.

A strong regulatory system can help ensure that renewable-energy expansion does not create avoidable damage to marine ecosystems.

The challenge is to balance the need for additional clean electricity with protection of the environment in which projects are built.

CLIMATE CHANGE IS ANOTHER REASON FOR INTEREST

South Africa remains heavily dependent on coal for electricity generation.

Coal-fired generation contributes significantly to greenhouse-gas emissions.

Increasing renewable-energy generation could help reduce the carbon intensity of the electricity system.

The World Bank's offshore wind framework estimates that large-scale development could potentially avoid hundreds of millions of tonnes of carbon dioxide emissions over the next 25 years.

The exact outcome would depend on how much offshore wind capacity is actually built and what generation it displaces.

Nevertheless, the potential is significant.

For South Africa, this also matters because the country is under pressure to reduce emissions while maintaining economic development and energy security.

OFFSHORE WIND WILL NOT REPLACE COAL OVERNIGHT

It is important not to present offshore wind as an immediate replacement for South Africa's existing electricity fleet.

Developing offshore wind projects takes years.

Environmental assessments can take considerable time.

Financing must be secured.

Construction requires major engineering and logistics.

Transmission connections must be built.

The turbines themselves must be manufactured or imported.

As a result, offshore wind should be viewed as a potential long-term component of the electricity system rather than a short-term solution to every power challenge.

South Africa will continue to require a combination of generation technologies during the transition.

COST WILL ALSO MATTER

Large offshore wind projects require substantial capital.

Floating offshore wind can be particularly expensive because the technology is more complex.

The cost of financing can have a major impact on electricity prices.

Developers therefore need to demonstrate that projects can produce electricity at commercially viable costs.

Technological improvements could reduce costs over time.

As more floating wind projects are constructed globally, lessons learned could improve manufacturing and installation methods.

South Africa's ability to attract investment will also depend on policy certainty, grid access, regulatory efficiency and the availability of appropriate financing.

These factors will influence whether the country's offshore wind potential becomes commercially viable.

THE WORLD BANK SEES A LONG-TERM OPPORTUNITY

The World Bank's new strategic framework does not suggest that South Africa should immediately construct every offshore wind project identified as technically possible.

Instead, it provides a framework for considering how the sector could be developed responsibly.

That includes planning for infrastructure, regulation, environmental protection, labour markets and economic development.

The report reflects growing international interest in South Africa's renewable-energy resources.

The country's wind and solar potential has already attracted significant investment.

Offshore wind could become another major area of development if the necessary conditions are established.

THE DELAY DOES NOT END THE GAGASI PROJECT

For the Gagasi project, the immediate focus remains on the technical and environmental work required to advance the proposal.

The fact that the environmental authorisation application was withdrawn and that new information is now required means the project timeline has changed.

The developers will need to provide updated technical information and progress through the relevant regulatory process.

Only after the necessary approvals and financing arrangements are in place can construction move forward.

That means the project should not be described as cancelled based on the current information.

It is more accurate to describe it as facing a development delay while its design and environmental assessment process are being addressed.

WHAT HAPPENS NEXT

The next stage will involve continued technical work on the Gagasi proposal.

Developers will need to clarify the revised design.

Environmental specialists will need sufficient information to assess potential impacts.

Regulators and stakeholders will then have to consider the project through the relevant approval processes.

At the same time, the wider offshore wind sector will continue to attract attention following the World Bank's new assessment.

Potential developers may examine the country's coastal wind resources.

Investors may consider the commercial possibilities.

Government and industry will need to determine how offshore wind can fit into South Africa's wider energy strategy.

Transmission planning will be particularly important because large amounts of new generation cannot be connected without adequate grid capacity.

A NEW INDUSTRY COULD EMERGE AROUND THE TECHNOLOGY

If South Africa eventually develops offshore wind at scale, the impact could extend far beyond electricity generation.

A new industrial ecosystem could emerge around the sector.

Engineering firms could develop specialised capabilities.

Ports could be upgraded.

Manufacturers could supply components.

Training institutions could create new programmes.

Marine-service companies could expand.

Research institutions could develop local expertise.

Communities could benefit from employment and business opportunities.

This would transform offshore wind from a power-generation technology into a broader industrial opportunity.

SOUTH AFRICA'S COASTLINE COULD BECOME AN ENERGY ASSET

For decades, South Africa's energy strategy has focused largely on resources located on land.

Coal mines have supplied power stations.

Solar farms have been developed across large areas.

Wind farms have been constructed in several provinces.

The country's coastline now presents another potential energy resource.

The scale of the World Bank's assessment suggests that the ocean could become increasingly important in South Africa's long-term energy planning.

But unlocking that potential will require careful preparation.

The ocean environment is complex.

Projects are expensive.

Technology is evolving.

Regulatory processes must be robust.

Communities and existing industries must be consulted.

Infrastructure must be developed.

Investment must be secured.

THE BIGGER QUESTION IS HOW FAST SOUTH AFRICA CAN MOVE

South Africa has demonstrated that renewable-energy projects can attract significant private investment.

However, large infrastructure projects can also face delays caused by regulatory requirements, grid constraints, financing challenges and technical issues.

Offshore wind adds another layer of complexity because projects operate in a marine environment.

The Gagasi delay therefore provides an early example of the challenges the country will need to manage.

If the government and private sector can address these barriers, offshore wind could eventually become a significant part of the country's energy transition.

If development remains slow, much of the identified potential could remain theoretical for years.

A DELAYED PROJECT, BUT A MUCH BIGGER OPPORTUNITY

The immediate story surrounding South Africa's offshore wind sector is therefore one of both delay and opportunity.

The country's first proposed offshore wind farm near Richards Bay has encountered a setback as its environmental assessment waits for additional technical information.

But at almost the same time, the World Bank has highlighted an estimated 95 GW of offshore wind potential across selected South African coastal areas.

That contrast illustrates the stage at which the industry currently finds itself.

The potential is enormous.

The practical development is still at an early stage.

South Africa has the coastline, wind resources and industrial capabilities that could support a future offshore wind sector.

But converting those advantages into operating power plants will require years of planning, investment and construction.

The country will also need to ensure that renewable-energy expansion delivers economic benefits while protecting marine ecosystems and existing coastal industries.

For the Gagasi project, the immediate priority is completing the technical work and progressing through the environmental process.

For South Africa more broadly, the challenge is larger.

It is about deciding how the country's ocean resources can contribute to energy security, economic development, employment and the transition toward lower-carbon electricity.

The coming years will determine whether offshore wind remains an attractive possibility or develops into a substantial new industry.

For now, the delay affecting Gagasi is a reminder that major energy projects take time.

At the same time, the World Bank's assessment shows why the sector continues to attract attention.

South Africa's offshore wind story is only beginning, and the decisions made during this early stage could influence how successfully the country eventually turns its vast coastal wind potential into electricity, investment and jobs.