South Africa faces its first setback in its attempt to open up the offshore wind market. The Gagasi project, of approximately 800 MW , has been delayed after its environmental impact assessment stalled pending further technical information from the developers.
According to Reuters , Acer , the consulting firm responsible for the environmental assessment, confirmed that the application for authorization to redesign the turbines and switch from a floating to a moored configuration had been withdrawn last year. Dieter Heinsohn, CEO of Acer, explained that the decision was based on technical, not environmental, reasons.
The project is planned off the coast of Richards Bay in KwaZulu-Natal and is being developed by GenesisHexicon, a joint venture between Sweden's Hexicon and South Africa's Genesis Eco-Energy Developments.
Acer also indicated that it is currently unaware of the project's status following the withdrawal of the application. Genesis Eco-Energy told Reuters that it expects to provide an update in October 2026 .
The delay comes just as the World Bank published a new strategic framework for the development of offshore wind in South Africa, which estimates a potential of nearly 95 GW in selected coastal areas , mainly associated with floating technologies.
The report aims to guide the South African government's decision-making and lay the foundations for the sector's development in both the short and long term.
95 GW on the radar, but the first project has yet to take off
The contrast is relevant: while the World Bank identifies a scale opportunity for the country, the first offshore development has yet to complete one of its initial stages.
According to estimates gathered in the study, a large-scale deployment could contribute around USD 6.7 billion in wages to the South African economy by 2050 and reduce CO₂ emissions linked to electricity generation by about 530 million tons over the next 25 years.
South Africa's potential is strongly associated with floating solutions due to the depth of much of its coastal waters, a characteristic that had already been highlighted in previous World Bank studies on emerging markets.
Gagasi, however, is now moving in a technical direction contrary to the original design and is studying an anchored configuration, which requires reviewing some of the documentation and the environmental assessment.
For now, the country has a clear idea of the scale of the opportunity, but not yet a first plant under construction. The potential 95 GW puts South Africa on the offshore radar, while the 800 MW Gagasi project shows that the leap from resource to project remains complex.