South Africa’s power-cut economic losses dropped 83% last year, totaling 481 billion rand ($26.7 billion), as supply stabilized. ESG’s maintenance measures improved reliability, yet intermittent outages persist. Electricity Minister Ramokgopa cites vulnerabilities due to procurement delays, with demand for electricity decreasing by 3% in 2024.
A recent report from the Council for Scientific and Industrial Research reveals that the economic losses from power cuts in South Africa decreased by 83% last year, indicating a stabilization of electricity supply. The costs incurred due to outages, locally referred to as loadshedding, fell from approximately 2.9 trillion rand in 2024 to 481 billion rand ($26.7 billion) in the previous year. During the same period, the nation’s gross domestic product (GDP) rose by 0.6%, reaching a total of 4.7 trillion rand.
This improvement in economic performance follows measures undertaken by Eskom Holdings SOC Ltd. to enhance maintenance and operational reliability of its coal-fired power plants, which constitute the majority of the country’s electricity generation. However, despite these advancements, intermittent outages have been reintroduced this year, indicating that the previous streak of consistent electricity supply has come to an end. Eskom is also increasingly relying on auxiliary diesel turbines during peak demand periods, as reported by the utility’s data.
Electricity Minister Kgosientsho Ramokgopa has cautioned that the electrical system remains susceptible to vulnerabilities due to ongoing delays in the procurement of additional generation capacity. Notably, the only nuclear power facility, once considered the most dependable, has been experiencing breakdowns, further complicating the situation. Eskom has disclosed that it aims to improve its fleet’s performance, having achieved the highest energy availability factor of 60% since 2021 last year. Additionally, the demand for electricity declined by 3% in 2024, supporting the utility’s ability to maintain supply amidst fluctuating challenges.
The report underscores a significant reduction in economic losses from power cuts in South Africa due to improved electricity supply stability. Eskom’s efforts in maintenance and operational enhancements yield positive results; nonetheless, ongoing challenges persist with intermittent outages and capacity procurement delays. The future of the electricity supply system remains uncertain, hinging on continued improvements and responses to demand trends.
Original Source: financialpost.com
