Abstract
Tapping into offshore wind could pave the way for a new industry in South Africa while supporting job creation and the country’s 2050 net zero aspiration.
South Africa has abundant potential for offshore wind (OSW) development, with high wind speeds and ample areas for development along its 2,800 km coastline. Offshore wind can provide a low-carbon, secure, and affordable electricity supply, and represents a promising new economic opportunity to create jobs and support the country’s energy transition.
Over the last decade, South Africa’s slow economic growth has been insufficient to address the triple challenges of unemployment, inequality and poverty. The Government of South Africa has formally recognised the need for a just transition to a decarbonised economy that leaves no one behind and creates decent work for all. By tapping into the country’s offshore wind potential, South Africa can usher in much-needed economic growth and diversification opportunities, which align with the priority areas in the critical investment plan for South Africa’s Just Energy Transition-Implementation Plan (JET-IP).
OSW development creates many new jobs, bolsters adjacent industries and attracts investment. Large-scale development will require the creation of a new, local supply chain, opening up significant and wide-ranging opportunities for employment and upskilling. These include jobs within the offshore wind industry — such as the manufacturing of floating wind components — and adjacent sectors, such as green hydrogen, which can be produced using OSW power and could present a major export opportunity for South Africa. Finally, the South African government’s investment, commitment and support for significant offshore wind deployment can help mobilise external investment.
This study finds that large-scale OSW development could support over 300,000 full-time equivalent (FTE) years in direct jobs and US $6.7 billion in associated employment wage contribution to the South African economy by 20501. These economic benefits grow with the amount of OSW deployed and the extent to which this deployment is driven by local manufacturing capacity. Similarly, over the next 25 years, OSW development could reduce the country’s electricity generation emissions by 530 MtCO2.
This report provides analysis of the transformative opportunities and challenges associated with varying levels of OSW development. It aims to help inform the government of South Africa and support decision-making to establish a successful offshore wind sector in both the short- and long-term. To support the drafting of this report and ensure comprehensive consideration, multiple rounds of stakeholder engagements were held with industry developers (through the South Africa Wind Energy Association), national and provincial government, statutory bodies, civil society, think tanks, and other marine users.