Assessing opportunities and constraints related to different models for supplying wind turbines to the South African wind energy industry

We explore the opportunities and constraints in the development of a localised wind energy industry in South Africa by analysing four wind energy projects representing different models of wind turbine production as suggested by Lewis and Wiser. We find that each model has strategic challenges and opportunities, and that particularly in the early growth stage of the industry the ‘turbine assembly’ model (with low levels of local content) has important risk and financing advantages. With regard to broader socio-economic impacts, however, we confirm the expectation that the ‘full turbine manufacturing’ model (with high levels of local content) has a significantly higher job creation potential. In terms of resulting policy implications, we support local content requirements, but emphasise the need for a strategic, phased approach to the development of industry clusters, with support not only to power producers and manufacturers, but also their domestic suppliers.