South Africa’s Economic Losses from Power Cuts Decline by 83% as Supply Stabilizes

South Africa’s economic losses due to power cuts fell by 83% in the past year, according to research from the Council for Scientific and Industrial Research. The decline resulted in 481 billion rand losses compared to higher losses of 2.9 trillion rand in 2024, amidst a stabilized power supply driven by Eskom’s enhanced maintenance initiatives. Despite these advancements, intermittent outages continue, highlighting ongoing vulnerabilities within the electricity system.

South Africa experienced a significant reduction in the economic losses attributed to power cuts, which decreased by 83% over the past year, according to a report by the Council for Scientific and Industrial Research. In 2024, the economy lost approximately 2.9 trillion rand due to persistent blackouts, while last year, the losses amounted to 481 billion rand ($26.7 billion). The total gross domestic product rose to 4.7 trillion rand, reflecting a 0.6% increase compared to 2023.

The reduction in power cut-related losses is credited to improvements implemented by Eskom Holdings SOC Ltd., the state’s primary electricity provider. The utility intensified maintenance efforts and adopted reforms to enhance the performance of its coal-fired power plants, which account for the majority of South Africa’s electricity generation. Despite these advancements, the electricity supply remains inconsistent, as Eskom has recently instituted intermittent outages due to ongoing challenges with the overall power system.

Electricity Minister Kgosientsho Ramokgopa emphasized the vulnerability of the system, noting delays in enhancing generation capacity. The nation’s solitary nuclear power facility, which was once deemed the most dependable among Eskom’s assets, has also suffered breakdowns. Eskom has reported that it is striving to bolster fleet performance, achieving a 60% energy availability factor last year, the best level recorded since 2021. Notably, electricity demand has declined by 3% in 2024, contributing positively to the stability of the power supply.

In conclusion, South Africa’s reduction of economic losses from power cuts reflects significant progress in stabilizing electricity supply. This improvement is attributed to Eskom’s increased maintenance and operational strategies. However, challenges remain, including dependency on aging infrastructure and delays in expanding generation capacity, necessitating continuous efforts to maintain reliability and meet consumer demand.

Original Source: financialpost.com