South Africa's first proposed offshore wind farm has been delayed after the environmental impact assessment for the project stalled while developers provide new technical information. The 800-megawatt Gagasi offshore wind project is planned off Richards Bay on the country's east coast and was launched in 2022 by GenesisHexicon, a joint venture between Sweden's Hexicon and South Africa's Genesis Eco-Energy Developments. The delay comes as the World Bank highlights the much larger potential for offshore wind development along South Africa's coastline.
Acer (Africa) Environmental Consultants, the company appointed to conduct the environmental assessment, confirmed on September 17, 2026, that the study had stalled. The consultancy said the project's environmental authorisation application was withdrawn last year and that it was uncertain about the current status of the development. According to Acer managing director Dieter Heinsohn, the application was withdrawn because the developers decided to redesign the project for a different turbine configuration, making the delay a technical issue rather than an environmental one.
The original Gagasi proposal involved floating offshore wind technology, but the developers subsequently moved toward anchored wind turbines. That change requires new technical information and has interrupted the environmental assessment process. Hexicon did not respond to Reuters' requests for comment, while Genesis Eco-Energy said it would provide an update on the project in October 2026.
The Gagasi project is significant because South Africa has extensive experience with onshore renewable energy but has yet to establish a commercial offshore wind industry. An 800 MW facility would represent a substantial addition to the country's electricity system, particularly as South Africa continues to deal with the long-term consequences of its dependence on coal-fired power generation. The project is therefore being watched as a potential early test of whether offshore wind can become part of the country's broader electricity and energy-transition strategy.
The timing of the delay is notable because the World Bank this week released a framework study examining South Africa's offshore wind potential. The study estimates that the country could have approximately 95 gigawatts of offshore wind potential across selected coastal areas, with much of that potential suited to floating offshore wind technologies. The scale of the estimate is many times larger than the capacity of the Gagasi project and suggests that the delayed development represents only a small part of a potentially much larger industry.
The World Bank also estimates that large-scale offshore wind development could contribute about $6.7 billion in employment wages to South Africa's domestic economy by 2050. The economic opportunity would extend beyond electricity generation, potentially involving construction, engineering, port services, vessel operations, maintenance, manufacturing and other activities associated with building and servicing offshore energy infrastructure.
The potential climate impact is also substantial. The World Bank estimates that offshore wind development could reduce South Africa's electricity-generation emissions by about 530 million metric tons of carbon dioxide over the next 25 years. The reduction would come primarily from increasing renewable electricity generation and reducing reliance on emissions-intensive coal-fired power plants. The World Bank said this could contribute to South Africa's climate goals while strengthening the country's position in clean-energy deployment.
Floating wind technology could be particularly important for South Africa because it allows turbines to be installed farther offshore in deeper waters where conventional fixed-bottom foundations become more difficult or expensive to deploy. The World Bank's estimate that much of the country's offshore wind potential is suitable for floating technology helps explain why the original Gagasi design attracted attention. The subsequent decision to redesign the project around anchored turbines shows, however, that technology selection can significantly affect the engineering, environmental assessment and development timelines of offshore projects.
The delay also highlights some of the challenges South Africa will have to address if it wants to turn its estimated offshore wind resource into actual electricity-generation capacity. Offshore projects typically require extensive environmental studies, marine surveys, grid planning, port infrastructure and detailed engineering before construction can begin. Changes in turbine design or project configuration can require developers to revisit parts of that process, adding time and cost before a final investment decision can be made.
For the environmental assessment, the redesign means that technical information provided by the developers needs to be updated before the study can proceed. This is particularly important for offshore projects because their potential effects can extend across marine ecosystems, fisheries, shipping routes, coastal communities and other activities that depend on ocean space. The environmental review therefore forms an important part of determining how and where a project can be developed.
South Africa's electricity system also creates a strong economic case for examining additional renewable generation. Coal remains a major source of electricity in the country, and reducing emissions from power generation is central to its longer-term energy transition. Offshore wind could complement existing renewable technologies by adding another source of electricity generation, although its development would also require suitable transmission infrastructure to connect coastal projects to areas of demand.
The World Bank's 95 GW estimate does not mean that all of that capacity will be built. Turning theoretical or technically suitable resource potential into operating wind farms depends on factors including project economics, electricity demand, transmission capacity, financing, environmental approvals, marine planning and investor confidence. The Gagasi delay demonstrates how individual projects can encounter technical and regulatory challenges even when the underlying renewable-energy resource is considered substantial.
The next phase of the Gagasi project will therefore depend on the developers' revised technical plans and the resumption of the environmental assessment. Genesis Eco-Energy's planned October update should provide more information about the project's redesigned configuration, development status and future timetable. Until then, the project remains an early example of both the opportunities and practical difficulties associated with establishing an offshore wind industry in South Africa.
The contrast between the delayed 800 MW Gagasi project and the World Bank's estimated 95 GW national potential illustrates the scale of the opportunity still under consideration. South Africa has a long coastline and a large electricity system that needs cleaner sources of generation, but converting that resource into operational offshore wind farms will require sustained investment, technical planning and regulatory progress. The outcome of Gagasi could provide an important indication of how quickly that emerging industry can move from potential to actual projects.