South Africa experienced an 83% drop in the economic cost of power cuts, attributed to improved supply stability. Power cut losses decreased to 481 billion rand ($26.7 billion) from a previous high of 2.9 trillion rand. Eskom’s enhanced maintenance of coal-fired plants aided this trend, although intermittent outages continue, reflecting ongoing challenges within the energy sector.
South Africa has seen a significant reduction in the economic cost of power cuts, experiencing an 83% decrease from the previous year. This decline is attributed to improved supply stability, as reported by the Council for Scientific and Industrial Research. The economic losses linked to outages, locally referred to as loadshedding, amounted to 481 billion rand (approximately $26.7 billion) in the past year, compared to a peak of 2.9 trillion rand in 2024 when blackouts were at a record high.
Gross domestic product increased to 4.7 trillion rand, reflecting a 0.6% rise compared to 2023, emphasizing the resilience of the economy amidst previous supply challenges. The stabilization in power supply can be credited to the efforts of Eskom Holdings SOC Ltd., which enhanced maintenance and operational reliability of its coal-fired plants, essential for the country’s electricity generation.
Despite these improvements, the overall energy landscape remains precarious, as Eskom continues to implement intermittent outages. The utility has escalated the use of auxiliary diesel turbines during peak demand times to compensate for supply gaps. Electricity Minister Kgosientsho Ramokgopa has cautioned that vulnerabilities persist due to ongoing procurement delays for additional generation capacity, with the national nuclear power plant experiencing breakdowns.
Eskom endeavors to enhance fleet performance, recently achieving an average energy availability factor of 60%, the highest rate since 2021. Additionally, a 3% decrease in electricity demand in 2024 has further contributed to the utility’s ability to maintain adequate supply levels. Living amidst these challenges, the country continues to strive for improved energy reliability, yet future developments remain crucial for sustained economic growth.
In conclusion, South Africa’s dramatic 83% reduction in the economic costs of power cuts signifies a positive trend in supply stabilization. While the country’s electricity generation has shown notable improvements, challenges persist, including the need for new capacity and continued outages. Eskom’s efforts have bolstered reliability, but ongoing vigilance and investment in infrastructure are necessary to support economic growth and prevent future setbacks.
Original Source: financialpost.com
