SAWEA acknowledges the initiation of a tariff review on renewable energy components by the International Trade Administration Commission of South Africa (ITAC), as gazetted in General Notice 3142 of 2025.
Niveshen Govender, Chief Executive Officer at SAWEA, explains that while the Association supports the government’s long-term vision to deepen localisation and expand local industrialisation capabilities where possible, it believes that it is essential to jointly determine the best options while avoiding negative impacts on the industry as both global and local energy markets evolve.
“As SAWEA, we are currently engaging with our members to fully understand and unpack the implications of this proposed tariff review. In continuing our efforts to advance wind energy in South Africa, we believe that it is necessary to initiate a deeper investigation into the impacts of potential tariffs on the local industry, as well as the deployment of wind energy as part of the energy security plan, and the levelized cost of energy (LCOE) from wind energy.”
SAWEA encourages extensive consultation between Government and industry to ensure that any adverse effects are avoided, and the right mechanisms are employed to support the South African localisation agenda. As such, it will be important to ascertain a baseline understanding of the local supply chain and how SAWEA and the industry as a whole can support its continued and sustainable business operations.
As a long-time contributor and participant in the South African Renewable Energy Masterplan (SAREM), SAWEA believes that the industry should localise at a pace and scale that it can afford, with a focus on energy security.
“To fully support localisation at scale, it is important to first ensure consistent and continuous demand for wind energy so that local manufacturing concerns are supported and sustained in the long term,” adds Govender.
While SAWEA welcomes the differentiated approach in the gazette to consider duty adjustments where local manufacturing is viable and exemptions where it is not, it cautions against the premature removal of existing import rebates or blanket local content mandates that do not reflect current realities in the wind sector.
“Instead, a flexible, incentive-driven framework, aligned with clear procurement pipelines and supported by industrial enablers such as port reform, logistics coordination, and finance risk-sharing, is key to enabling sustainable localisation,” concludes Govender.
SAWEA remains committed to working with Government, OEMs, and industry stakeholders to ensure that tariff reform balances the urgent need for energy security with the long-term goals of industrial growth, inclusive participation, and a just energy transition.
