Eskom reaches 100 days without loadshedding, signalling marked improvement in Generation and financial performance
5 July 2024
Eskom has successfully achieved 100 consecutive days without loadshedding, a milestone that reflects the enhanced reliability and performance of our generation fleet. This accomplishment is the result of our multi-dimensional Generation Operational Recovery Plan, initiated in March 2023, and aggressive planned maintenance, both of which were made possible by financial support from the National Treasury Eskom debt relief scheme. The last time the country enjoyed such a prolonged period without loadshedding was from 08 September 2020 to 11 December 2020.
“The achievement of 100 continuous days without loadshedding is the outcome of diligent execution of recovery plans and the tireless efforts of our 40 000 dedicated and skilled Eskom employees," stated Bheki Nxumalo, Group Executive for Generation.
“If we maintain a 70% Energy Availability Factor (EAF) and add significant capacity within the country, we can ensure adequate available capacity to meet demand without a significant risk of loadshedding," added Nxumalo.
“Considering the intensity and the levels of loadshedding in 2023, the ability to get to 100 days without loadshedding is significant, while acknowledging that the risk of loadshedding still exists,” commented Eskom Group Chief Executive, Dan Marokane.
It is important to note that the continuous suspension of loadshedding has been achieved against a backdrop of a significant decrease in the usage of open-cycle gas turbines (OCGTs) to supplement generation capacity. OCGTs are strategically utilised to assist Eskom in meeting high electricity demand during peak times.
“The 100 days milestone includes around a ~R6.2 billion reduction in OCGT diesel expenditure from 1 April 2024 to 30 June 2024, compared to the same period last year and if we maintain our trajectory on reduced diesel spend, it will be a strong driver in a possible return to profit in FY25,” concluded Marokane.
Our targeted initiatives have led to a gradual reduction of unplanned losses on our generation fleet from 18 000MW to an average of 12 000MW, an improvement of 6 000MW since May 2023. This has contributed to a sustained improvement in the EAF, which has increased from 54.56% at the end of FY23/24 to a year-to-date achievement of 61.50%, an increase of 6.94% over the past three months.
We are grateful to the government, the National Energy Crisis Committee (NECOM), and other key stakeholders for their collaborative efforts, which have enabled the successful execution of our plans. Our immediate focus remains on implementing the Generation Operational Recovery Plan, aiming to recover about 1 600MW from the generation coal fleet following the successful commercial operation of Kusile Unit 5 and 930MW from Koeberg Unit 2 before the end of the calendar year. This will significantly improve the EAF by the end of March 2025.
We will persist in implementing the operational recovery plan, strengthening governance, and future-proofing the organisation to ensure energy security, growth, and long-term sustainability for the benefit of South Africa and sub-Saharan Africa.
We remain committed to improving the current business while laying the groundwork for future opportunities and initiatives. We will continue to seize every opportunity presented by industry changes for the benefit of all our stakeholders. The pace of change is rapid, and we are prepared to deliver on the future through improved implementation and disciplined execution.
Issued by Eskom Media Desk, 5 July 2024
