Significant Decrease in South Africa’s Power-Cut Losses as Supply Stabilizes
South Africa’s economic losses from power cuts decreased by 83% due to supply stabilization, falling to 481 billion rand from 2.9 trillion rand in 2024. Eskom’s maintenance efforts and coal plant reliability have played crucial roles, but intermittent outages continue to present challenges. As the economy grows slightly, concerns over energy supply persist amid procurement delays for new capacity.
A recent report by the Council for Scientific and Industrial Research indicates that the economic losses due to power cuts in South Africa have plummeted by 83%. The losses were reduced significantly to 481 billion rand ($26.7 billion) in the past year, compared to a staggering 2.9 trillion rand in 2024. In this improved condition, the country’s gross domestic product (GDP) reached 4.7 trillion rand, a 0.6% increase from 2023.
The stabilization in electricity supply is attributed to the state utility, Eskom Holdings SOC Ltd., which has increased its maintenance efforts and optimized the performance of coal-fired power plants. Despite these improvements, intermittent outages have resumed this year, causing concern about the reliability of the electricity grid. Eskom is also using auxiliary diesel turbines to manage peak demand more effectively.
Electricity Minister Kgosientsho Ramokgopa has cautioned that the electrical system remains susceptible due to ongoing procurement delays for additional generation capacity. The country’s nuclear power station, once considered reliable, has also experienced breakdowns. Eskom aims to further enhance its power plant performance, which saw a 60% energy availability factor last year, marking the highest since 2021. Demand for electricity has decreased by 3% in 2024, contributing to improved supply stability, and the trend appears to be continuing downward.
The reduction in South Africa’s power-cut losses underscores significant improvements in electricity supply courtesy of Eskom’s maintenance initiatives. While the economy was severely impacted by previous outages, recent actions have resulted in a noteworthy decrease in losses and a slight GDP growth. However, challenges remain as intermittent outages persist, and the system’s vulnerabilities must be addressed to ensure reliability moving forward.
Original Source: financialpost.com
