Eskom Triumphs in Cutting Diesel Costs and Mitigating Load Shedding

In a significant development for South Africa's power sector, national electricity provider Eskom has reported a substantial reduction in its diesel expenses while successfully preventing load shedding for an extended period. The state-owned enterprise has managed to decrease its diesel bill by R9.59 billion over the past five months, compared to the same timeframe last year.

Diesel is used by Eskom to operate open-cycle gas turbines (OCGTs), which are typically called into service during high demand periods or when other generation units are offline to prevent power outages. Historically, these costs have been a heavy financial burden for the utility during episodes of load shedding. However, through what Eskom's spokesperson Daphne Mokwena has dubbed the "generation operational recovery plan," the utility saw diesel expenses drop from R13.07 billion during April to August of the previous year to R3.48 billion within the same period of 2024.

This feat is a testament to the improved performance of Eskom's power stations. The energy availability factor (EAF), representing the amount of generation capacity available to meet demand, has notably been sustained at an average of 68% over the past week. July's EAF reached 67.41%, marking the highest level since July 2021. Stations such as Medupi, Majuba, Matla, Lethabo, Kusile, and the peaking stations all recorded an EAF greater than 70%. Additionally, four other power stations achieved an EAF above 60%, all of which were highlighted in Eskom's recovery plan.

This uptick in operational efficiency exceeded the utility's expectations, especially during the winter months when demand is at its peak. Unplanned outages have meanwhile been maintained between 9,800MW and 12,400MW since April 1, 2024, significantly lower than forecasted for the period. As of the latest reports, the figure stood at 10,757MW.

Eskom's strides in efficiency have culminated in an impressive stretch of 135 days without load shedding, which South Africa has not experienced since before the pandemic-induced lull from March 16 to July 9, 2020. The recent suspension of load shedding is credited to a decrease in unplanned outages and a rise in planned maintenance over the past months.

South Africans reliant on consistent electricity can now breathe a sigh of relief as Eskom's strategies appear to bear fruit. The organization's proactive measures not only alleviate the immediate burden on consumers but also serve as a positive indicator of sustainable management practices moving forward.