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Power Supply Stability Brings New Optimism to South Africa

254 by 254
August 7, 2024
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Power outages had long been a fixture of South African life, fueling concerns that the country was heading in the wrong direction. However, the electricity supply has remained consistent since March, prompting many to wonder what has changed.

On a crisp winter’s day in Johannesburg, with a clear blue sky over the bustling township of Alexandra, or Alex as it is commonly known, Sizeka Rashamosa is busy in her restaurant. People are coming and going—some delivering crates of beer, others grilling meat on a hotplate. A group of young men enjoys their time at a sunlit table.

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“I can’t talk,” she says, “I’m busy.”

This vibrant scene contrasts sharply with our previous meeting in March last year, during the peak of South Africa’s power crisis and frequent load-shedding, the term for scheduled power cuts. At that time, Ms. Rashamosa had minimal electricity and only one customer—a reflection of the broader economic impact.

“The power is everything,” she had said then. “I’m very stressed. We don’t have money because of the electricity. It’s dark. I don’t think I’ll survive in my business. We’ll have to close down after 25 years. It’s terrible.”

Today, when she finally has a moment to speak, her tone is upbeat.

“The load-shedding is much better now,” she says. “You can see, there’s electricity. I’m busy. I’m going to stay open. No plans to close, not anymore.”

This turnaround is remarkable. Load-shedding, which began in 2007, peaked last year with power cuts often extending over half a day. This year, the situation was expected to worsen, but there has been no load-shedding for over four months—since 5:00 AM on March 26, to be precise—the longest break in over four years.

The improvement is largely attributed to a series of initiatives by the state-owned power provider Eskom and the government over the past two years. In July 2022, President Cyril Ramaphosa announced the Energy Action Plan and declared a national state of disaster over the electricity crisis. He also appointed Kgosientsho Ramokgopa as the electricity minister and Eskom launched a two-year Generation Operational Recovery Plan, aiming to boost the “Energy Availability Factor” (EAF) to 70% of the network’s potential.

Eskom has also undergone a leadership overhaul, which many cite as crucial to the turnaround. The company had suffered from corruption and mismanagement under former President Jacob Zuma, including theft, sabotage, and even a claim of poisoning by a former CEO.

Ruse Moleshe, an energy analyst, notes that the current leadership mix of technical, financial, and turnaround experts has revitalized the company. Eskom’s spokesperson, Daphne Mokwena, adds that the 40,000 employees are now more committed and motivated.

Last year, a 254 billion rand ($14 billion; £10.9 billion) debt-relief package from the treasury helped address Eskom’s financial shortfall, leading to a reduction in unplanned outages and allowing for essential maintenance. As a result, Eskom reached 35,000 MW of energy capacity on July 23, its highest in six years.

Energy expert Chris Yelland likens the situation to a pipe slowly releasing marbles, referring to the gradual progress of the large projects initiated since July 2022. External factors also played a role: decreased overall demand for electricity due to rising energy bills and increased use of alternative energy sources, such as solar and battery storage, have contributed to the improvement.

Minister Ramokgopa frequently updates the public and visits Eskom’s power stations, expressing optimism about the progress, especially during high-demand winter months. However, he acknowledges that the situation could have been managed better if earlier warnings about capacity shortages had been heeded.

“The state must lead, and we didn’t create conditions for the market to respond appropriately,” Ramokgopa told the BBC.

Despite the progress, President Ramaphosa has cautioned against claiming victory too soon. The electricity system remains vulnerable, and occasional power cuts, known as “load reduction,” still occur to prevent damage to infrastructure caused by illegal connections and overcrowding.

“The probability of us returning to load-shedding is very slim if we continue our current efforts,” says Mokwena.

In Alexandra, Ms. Rashamosa is preparing for a busy weekend, a stark contrast to her situation just a year ago.

“Life is much better now,” she says, before returning to her bustling restaurant.

Tags: “Energy Availability Factor” (EAF)Energy Action PlanJohannesburg
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