South Africa’s Power-Cut Losses Decrease by 83% as Supply Improves
South Africa’s economic losses from power cuts have decreased by 83% due to stabilized supply, according to a recent report. Losses fell to 481 billion rand in 2024, significantly down from 2.9 trillion rand the previous year, reflecting an improvement in the utility’s operations. However, challenges remain, as Eskom warns of ongoing vulnerabilities in the power system.
According to a report from the Council for Scientific and Industrial Research, the economic impact of power cuts in South Africa dropped by 83% last year, thanks to improvements in supply stability. The economy experienced losses totaling 481 billion rand (approximately $26.7 billion) due to outages, a significant reduction from the staggering 2.9 trillion rand in 2024, which had witnessed unprecedented blackouts. The nation’s gross domestic product (GDP) last year was reported at 4.7 trillion rand, marking a 0.6% increase from 2023.
The observed improvement in supply was attributed to the state utility, Eskom Holdings SOC Ltd., which enhanced maintenance practices and implemented measures to boost the reliability of its coal-fired electricity generation. However, despite these advancements, Eskom has started to initiate intermittent outages once again this year. The utility has also been utilizing auxiliary diesel turbines more frequently to meet peak demand, as indicated by its operational data.
Electricity Minister Kgosientsho Ramokgopa cautioned this month that the electricity system remains at risk due to ongoing delays in acquiring additional generation capacity. The country’s only nuclear power station, previously considered the most reliable of Eskom’s facilities, has recently experienced breakdowns as well. Eskom is committed to further improving its overall fleet performance, which achieved an average energy availability factor of 60% last year, marking the best rate since 2021. Furthermore, a reduction in electricity demand by 3% in 2024 has aided the utility in sustaining supply, and this trend of declining demand appears to be continuing.
In conclusion, South Africa has witnessed a remarkable decline in the economic losses attributed to power cuts, primarily due to a stabilization in supply. While Eskom’s efforts to enhance its services have yielded positive results, challenges persist in maintaining a consistent electricity supply. The ongoing need for investment in generation capacity underscores the vulnerability of the national energy infrastructure.
Original Source: financialpost.com
