South Africa’s economic losses from power cuts dropped 83% last year, totaling 481 billion rand. This decline is attributed to enhanced maintenance by Eskom Holdings, despite ongoing challenges with supply reliability and infrastructure. GDP increased by 0.6%, and electricity demand fell by 3% in 2024, signaling improvements in power management.
Recent findings from the Council for Scientific and Industrial Research indicate a significant reduction, by 83%, in the economic losses due to power cuts in South Africa. The total economic impact from these outages, known as loadshedding, fell to 481 billion rand ($26.7 billion), a stark decline from 2.9 trillion rand in 2024 when blackouts were at an all-time high. Additionally, the Gross Domestic Product (GDP) for the previous year was reported at 4.7 trillion rand, reflecting an increase of 0.6% from 2023.
The improvement in supply stability can be attributed to enhanced maintenance and operational adjustments by Eskom Holdings SOC Ltd., the state-owned utility responsible for electricity generation in South Africa. These measures have bolstered the reliability of the country’s coal-fired power plants, which are the primary source of electricity. However, intermittent outages have persisted this year, as Eskom continues to implement controlled power cuts.
Electricity Minister Kgosientsho Ramokgopa issued a warning about the ongoing vulnerability of the power system due to delays in procuring additional generation capacity. Furthermore, maintenance issues have affected the reliability of the nation’s nuclear power station, historically regarded as a cornerstone of Eskom’s energy infrastructure. Despite these challenges, Eskom reported an average energy availability factor of 60% for its fleet last year, the highest since 2021. Demand for electricity has also decreased by 3% in 2024, contributing positively to the stability of supply.
In summary, South Africa has experienced a notable improvement in its power supply stability, leading to an 83% reduction in economic losses due to power cuts. While Eskom’s efforts to enhance the reliability of its coal-fired plants are commendable, significant challenges remain, particularly regarding infrastructure maintenance and capacity procurement. Continued vigilance and investment are essential to sustain this progress and ensure a resilient energy future for the nation.
Original Source: financialpost.com
