Business Day

Adding offshore wind to mix

• SA should act now to harness its long-term energy potential

- Alessandra Pardini & Gillian Niven Allen & Overy

SA has immense potential to harness energy from offshore wind. The World Bank estimates it could produce up to 901GW of power from both floating and fixed seabed mounted offshore wind, mostly in high-potential Western Cape areas such as Saldanha, Cape Town, Hermanus and Mossel Bay.

This could help diversify SA’s energy mix away from coal, alleviate load-shedding and grid constraint­s, and boost energy security in Africa’s most industrial­ised country.

The World Bank says floating turbines could produce up to 852GW of SA’s 901GW of potential wind power, while fixed offshore wind infrastruc­ture could produce 49GW. It says the country needs to implement six solutions to overcome legal and environmen­tal hurdles and kickstart its offshore wind industry.

SA must investigat­e the best floating turbine infrastruc­ture for the local coastline

Floating turbine technology is still in its infancy, with only a handful of pilot projects in operation across the world.

SA has a relatively deep coastline and some of the strongest ocean currents in the world, which pose technical challenges for these projects as floating turbines require infrastruc­ture including floating substation­s, ports large enough to handle the huge turbines, as well as greater use of deep-sea cabling.

All this is expensive and complex, which is why we need the best minds on the job to solve the technical challenges associated with these exploratio­ns.

Regulatory hurdles can be overcome with help from the oil and gas sector

Offshore wind projects may be relatively common in Europe and China, but they are still novel in SA. This means first movers will need to navigate complex regulation­s and bureaucrat­ic regulators to get projects off the ground.

This will include obtaining marine lease permits through the Integrated Coastal Management Act, dealing with civil aviation concerns, as well as taking account of marine special planning considerat­ions. The good news is that all of this is not without precedent.

Developers can leverage considerab­le experience from SA’s offshore oil and gas sector, as well as companies that have been involved in large undersea cabling and green hydrogen projects, to give them advice on how to structure project companies, reduce risk and tackle regulation. SA should start collecting high-quality environmen­tal impact and other data

The constructi­on of fixed offshore wind projects typically costs at least double the price of onshore wind projects, and floating turbine projects cost even more. Offshore turbines can, however, yield greater results because the larger blades have higher generating capacity.

Given the challenges of SA’s coastline, collecting good-quality data on seismic conditions, wind and wave speeds will be crucial in deciding which offshore projects are financiall­y and technicall­y viable. To determine this viability, developers will also need to collect a wide array of long-term environmen­tal and socioecono­mic informatio­n to submit environmen­tal impact assessment­s to the regulators who sign off on such projects.

It is not uncommon for these assessment­s to take up to three years to produce. If we want the industry to take off in the next decade, South Africa needs to start conducting these studies now.

Set aside the funds for exploratio­n — it’s worth it We believe it is worth investing considerab­le resources in the necessary data-gathering exercise for offshore wind viability in SA, despite the high costs involved.

Internatio­nal investors who may provide project financing are often worried about the environmen­tal, social and governance impacts of offshore projects, so high-quality impact assessment­s that adhere to globally recognised best practices can go some way to alleviatin­g these concerns and securing investment.

The government must determine if it will buy the energy or if someone else should

A big unknown is still who the power off taker for these projects will be. The most obvious solution would be for the SA government to purchase the power and feed it directly into the national grid. Unfortunat­ely, the current integrated resource plan (IRP) for new generation capacity does not recognise procuremen­t from offshore wind.

The department of mineral resources and energy’s much-anticipate­d and delayed IRP 2023 may change this, but developers are not holding their breath. The government urgently needs to provide clarity on whether it would buy in offshore wind power — but so should private sector players such as green hydrogen, green ammonia and sustainabl­e

aviation fuel producers. Engagement with stakeholde­rs will be needed at every stage

Last year’s decision by a South African court to halt Shell’s exploratio­n of the Wild Coast still looms large in the public consciousn­ess. The court sided with residents who said they had not been properly consulted about Shell’s exploratio­n of the seabed, with many concerned about the harmful impact on marine life.

Developers will need to thoroughly engage with various groups, including indigenous peoples and small-scale fisheries, to address concerns that offshore wind can be built without causing significan­t harm to the environmen­t and local industries.

THE WORLD BANK SAYS FLOATING TURBINES COULD PRODUCE UP TO 852GW OF SA’S 901GW OF POTENTIAL WIND POWER

Offshore wind can diversify SA’s energy mix but is not a silver bullet

THE GOVERNMENT URGENTLY NEEDS TO PROVIDE CLARITY ON WHETHER IT WOULD BUY IN OFFSHORE WIND POWER

While there is considerab­le opportunit­y for offshore wind in SA, the technology would not be a quick fix or silver bullet for the country’s energy crisis.

Over the longer term, offshore wind has the potential to be a highly useful tool to further diversify SA’s energy mix and boost the economy — so we need to see it as part of a broader energy transition and play the long game.

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/123RF — MARKBRIGHT­ON

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