South Africa’s Power-Cut Losses Decrease by 83% as Supply Improves

South Africa’s report indicated an 83% decrease in economic losses from power cuts in 2024, with losses falling to 481 billion rand due to improved electricity supply. The GDP rose to 4.7 trillion rand. Eskom’s maintenance and reliability initiatives played a key role, although intermittent outages and other challenges persist.

According to a recent report from the Council for Scientific and Industrial Research, South Africa’s power cut losses declined by an impressive 83% in 2024 as the electricity supply stabilized. The economic impact of these outages, locally termed loadshedding, decreased to 481 billion rand (approximately $26.7 billion) from a staggering 2.9 trillion rand in 2023, which experienced unprecedented blackouts. The country’s gross domestic product rose to 4.7 trillion rand in 2024, marking a 0.6% increase from the previous year.

The reduction in power outages can be attributed to Eskom Holdings SOC Ltd.’s efforts in enhancing maintenance and addressing the reliability of its coal-fired power plants, which supply the majority of national electricity. However, despite this improvement, the utility has resumed implementing intermittent outages this year. Eskom’s data indicates increased usage of auxiliary diesel turbines to meet peak demand for electricity.

Electricity Minister Kgosientsho Ramokgopa cautioned that the energy system remains at risk due to ongoing delays in procuring additional generation capacity. Notably, the country’s sole nuclear power facility, previously considered Eskom’s most dependable plant, has also experienced breakdowns. Eskom has highlighted its commitment to enhancing fleet performance, achieving a 60% energy availability factor in 2024, the best since 2021. Furthermore, a 3% reduction in electricity demand in 2024 has contributed to the utility’s ability to sustain supply as the demand continues to decline.

In conclusion, South Africa’s measures to enhance the electricity supply have significantly mitigated the economic impact of power outages. With an 83% reduction in losses, the economy is showing signs of recovery, albeit challenges remain in ensuring consistent electricity supply. Continued improvement efforts from Eskom and attention to procurement processes are essential to secure a stable energy future for the nation.

Original Source: financialpost.com