South Africa’s Power-Cut Losses Decline Significantly as Supply Improves
A report indicates that South Africa’s economic losses from power cuts fell by 83% in 2024 to 481 billion rand, due to improved supply stability from Eskom’s maintenance measures. Although the supply has stabilized, intermittent outages persist, and the energy system remains vulnerable due to delays in new capacity procurement.
South Africa experienced a significant reduction in the economic impact of power cuts, as outlined in a report by the Council for Scientific and Industrial Research. Power outages, locally known as loadshedding, resulted in an economic loss of 481 billion rand ($26.7 billion) in 2024, representing an 83% decrease from the previous year’s nearly 2.9 trillion rand loss due to record blackouts. The gross domestic product for 2024 reached 4.7 trillion rand, reflecting a 0.6% increase compared to 2023.
This reduction in losses can be attributed to improved supply reliability following enhanced maintenance efforts by Eskom Holdings SOC Ltd., the state utility company responsible for most of the nation’s electricity. However, Eskom also reverted to implementing intermittent outages this year, resulting in a compromise on the previously uninterrupted supply of electricity. To alleviate peak demand, there has been an increased reliance on auxiliary diesel turbines.
Electricity Minister Kgosientsho Ramokgopa noted that South Africa’s energy system remains vulnerable due to delays in securing additional generation capacity. Notably, the country’s only nuclear power station has experienced breakdowns, contributing to the instability. Eskom reports that it aims to improve fleet performance further, having achieved a 60% energy availability factor last year, the highest since 2021. Moreover, a 3% decline in electricity demand has helped maintain supply levels, with a continuing downward trend observed.
In summary, South Africa’s power-cut losses have markedly decreased due to improved electricity supply stability, primarily through Eskom’s intensified maintenance activities. Nonetheless, the country continues to face vulnerabilities due to reliance on aging infrastructure and delays in expanding generation capacity. Ongoing efforts by Eskom to enhance fleet performance indicate a focus on mitigating future outages, promoting a more reliable power supply.
Original Source: financialpost.com
