Significant Reduction in South Africa’s Power-Cut Losses

South Africa’s economic losses due to power cuts decreased by 83% last year, totaling 481 billion rand, as electricity supply stabilized. Eskom improved coal-fired plant reliability, but periodic outages continue. The energy system remains vulnerable due to delays in expanding generation capacity, although GDP rose by 0.6% in 2024.

According to a report from the Council for Scientific and Industrial Research, South Africa’s economy suffered an 83% reduction in losses due to power cuts last year. The economic impact of outages, known locally as loadshedding, decreased significantly from 2.9 trillion rand in 2024 to 481 billion rand ($26.7 billion) in the previous year. In addition, the country’s gross domestic product (GDP) rose to 4.7 trillion rand, reflecting a 0.6% increase from the previous year.

The notable improvement can be attributed to the efforts made by Eskom Holdings SOC Ltd., the state utility, which enhanced maintenance measures to boost the reliability of coal-fired power plants. Nevertheless, a resurgence of intermittent outages has occurred in 2025, and Eskom has been relying more on auxiliary diesel turbines to meet peak demand.

Electricity Minister Kgosientsho Ramokgopa cautioned that the energy system remains vulnerable due to delays in expanding generation capacity. The sole nuclear power station, previously known for its reliability, has also experienced breakdowns. Eskom has reported continuing efforts to improve its energy availability, achieving an average of 60% in 2024—its best performance since 2021. Moreover, demand for electricity fell by 3% in 2024, which has contributed to stabilizing supply and appears to be in a downward trend.

In conclusion, South Africa has experienced a significant 83% reduction in economic losses from power cuts, highlighting improvements in electricity supply due to Eskom’s proactive measures. Despite ongoing vulnerabilities within the energy system and the implementation of intermittent outages, the overall economic growth suggests a positive trajectory. Continued efforts in maintenance and generation capacity expansion will be essential for sustainable electricity supply.

Original Source: financialpost.com