South Africa’s power-cut losses fell by 83% last year due to supply stabilization, with economic losses from outages decreasing significantly. Eskom’s improved maintenance of coal-fired plants contributed to this decline, although intermittent outages continue. Minister Ramokgopa warns about ongoing vulnerabilities in the power system despite recent advancements.
A recent report from the Council for Scientific and Industrial Research indicates that the economic losses from power cuts in South Africa diminished by 83% last year, as the power supply began to stabilize. The economic output lost due to outages, commonly known as loadshedding, dropped to 481 billion rand ($26.7 billion) from a staggering 2.9 trillion rand in 2024. In 2023, the country’s gross domestic product (GDP) reached 4.7 trillion rand, reflecting a modest growth of 0.6%.
The reduction in power cut losses is attributed to improved maintenance practices by Eskom Holdings SOC Ltd., the state utility company, which enhanced the reliability of its coal-fired plants, responsible for a significant portion of the nation’s electricity supply. Nevertheless, Eskom has resumed implementing intermittent outages this year, indicating that the stability achieved may not be fully secure.
Minister of Electricity Kgosientsho Ramokgopa has cautioned that the electrical system retains vulnerabilities due to delays in acquiring additional generation capacity. Notably, the country’s only nuclear power station, previously deemed the most reliable, has experienced outages. Eskom is actively working on optimizing its fleet performance—recording an average energy availability factor of 60% last year, the highest since 2021. Furthermore, a notable drop in demand of 3% in 2024 has aided in maintaining the power supply, which continues to exhibit a downward trend.
In conclusion, the reduction of power-cut losses in South Africa by 83% highlights the advancements made in stabilizing the electricity supply through improved maintenance and operational efficiencies by Eskom. Despite these progressions, persistent vulnerabilities and intermittent outages emphasize the need for continuous investment in generation capacity to sustain reliable power in the future.
Original Source: financialpost.com
