The cost of power cuts in South Africa decreased by 83% in the last year, falling to 481 billion rand due to improved reliability of the power supply, according to a Council for Scientific and Industrial Research report. This follows efforts by Eskom to enhance its coal-fired plants. Despite these improvements, intermittent outages continue, and the power system remains vulnerable, highlighting the need for ongoing capacity expansion.
South Africa’s economy experienced a significant 83% reduction in losses attributed to power cuts last year, as indicated by a recent report from the Council for Scientific and Industrial Research. Financial losses from outages, known as loadshedding, dropped to 481 billion rand ($26.7 billion), a stark contrast to the record 2.9 trillion rand experienced in 2024 amid extensive blackouts. The country’s gross domestic product (GDP) also saw an increase, amounting to 4.7 trillion rand in 2025, which reflects a 0.6% growth compared to the previous year.
This improvement can be largely credited to Eskom Holdings SOC Ltd., the state utility provider, which has ramped up maintenance efforts and implemented strategies aimed at enhancing the reliability of its coal-fired power plants, the primary source of South Africa’s electricity. However, despite these advancements, the nation is facing intermittent power outages in 2025. Eskom has begun utilizing auxiliary diesel turbines more frequently to manage peak demand effectively.
Electricity Minister Kgosientsho Ramokgopa noted that while improvements have been made, the country’s power system remains fragile due to delays in procuring additional generation capacity. Notably, the country’s only nuclear facility—a critical power station—has also suffered breakdowns, further complicating the energy landscape. Eskom continues to strive for better performance from its generation fleet, which achieved an average energy availability factor of 60% last year, the highest rate since 2021. Demand for electricity decreased by 3% in 2024, allowing for improved supply stabilization, a trend that appears to be ongoing.
South Africa’s recent energy report marks a substantial improvement in the economic impact of power cuts, pointing towards stabilization of electricity supply and maintenance advances by Eskom. As the nation navigates challenges in expanding generation capacity and dealing with intermittent outages, it remains crucial to monitor the ongoing performance of Eskom’s power plants and demand trends. Sustained efforts will be necessary to ensure continued economic growth and reliability in the energy sector.
Original Source: financialpost.com
