Eskom Marks a Century of Days Uninterrupted by Load-Shedding

In a significant stride towards energy security and financial health, South Africa's power utility Eskom celebrated reaching an impressive milestone of 100 days without implementing load-shedding on Friday. Achieving this mark signals a commendable boost in the state-owned entity's generation performance and financial position.

The power utility has not witnessed such a prolonged phase of stable electricity supply since the period spanning from September 8 to December 11, 2020. The current streak has seen Eskom notably reduce its reliance on costly open-cycle gas turbines (OCGTs), which are conventionally utilized to bolster generation capacity particularly during peak electricity demand periods.

Eskom's CEO, Dan Marokane, identified this as a turning point with significant financial implications. "The 100 days milestone includes a substantial R6.2 billion rollback in OCGT diesel expenditure from April 1 to June 30, 2024, when measured against the same juncture the prior year. Should we maintain this descent in diesel expenditure, it bodes well for envisaging a rebound to profitability in the fiscal year of 2025," he optimistically stated.

This announcement also comes as a welcome contrast to the prevalent load-shedding experienced throughout 2023, highlighting the relative stability accomplished thus far. Marokane admitted that challenges persist, with the lingering risk of load-shedding still present.

This remarkable feat, as stated by Bheki Nxumalo, Eskom's group executive for generation, is a direct result of committed efforts from the firm's staff. Around 40,000 dedicated employees have been instrumental in the persistent and adept execution of recovery strategies. Nxumalo illustrated that sustaining a 70% energy availability factor (EAF) and integrating substantial capacity within the economy remain crucial to staving off the threat of load-shedding.

Maintaining focus on its robust generation operational recovery plan, which launched in March 2023 supported by grants from the National Treasury's debt relief scheme, Eskom has improved its EAF from 54.56% at the end of the 2023/24 financial year to a promising 61.50% year-to-date. This hike of almost 7% is owed to the plan's aggressive execution and planned maintenance initiatives.

The power utility is determined to maintain its ascent in EAF and is geared towards recovering an estimated 1,600 megawatts from the coal generation fleet, alongside the commencement of commercial operations for Kusile unit 5 and a 930 megawatt reap from Koeberg unit 2—all before the close of the current year. Achieving these targets is projected to significantly increase the EAF by March 2025.