South Africa Faces Deepening Electricity Crisis As Eskom Struggles In 2023 – Report

ResearchAndMarkets.com has released the “Generation of Electricity in South Africa 2024” report, shedding light on South Africa’s escalating electricity crisis. The country has experienced intensified challenges in 2023, primarily due to extensive breakdowns at Eskom’s aging power stations, compounded by a slowdown in the renewable energy independent power procurement program.

The debt-laden Eskom faces continued operational and financial challenges, with ongoing theft and corruption adding to its woes. Despite regulatory changes unlocking opportunities for private and municipal investment in electricity generation, the crisis persists. Eskom’s unbundling into separate generation, transmission, and distribution companies aims to be completed by mid-2024.

Key Opportunities, Challenges, and Trends:

Opportunities:

• Electricity trading offers remote markets for independent power producers.
• Private supply of distributed electricity generation capacity for large companies.
• Dropping solar panel prices makes embedded solutions more affordable.

Challenges:

• Continued theft and corruption at Eskom.
• Eskom’s poor financial and operational performance.
• The a need to install sufficient renewable energy and gas generation to reduce dependence on coal.
• The national grid operates at full capacity.

Trends:

• Eskom’s financial and operational struggles persist, with escalating load shedding.
• Regulatory moves to separate Eskom and introduce competition gain momentum.
• Renewable energy companies capitalize on commercial and industrial self-generation projects.
• Small-scale embedded solar generation, especially residential, sees rapid growth.

Outlook and Report Coverage:

The electricity crisis has inflicted significant economic losses, with the government anticipating a supply deficit until 2027. Private renewable energy companies face challenges due to the full grid capacity, while regulatory changes offer potential relief. Embedded rooftop solar generation and self-generation investment continue to grow, providing hope amid the ongoing challenges.

The unbundling of Eskom aims to facilitate private sector involvement in supplying utility-scale electricity. Treasury initiatives to relieve Eskom’s debt and Eskom’s plans to address municipal debt contribute to the outlook. The report covers comprehensive information on Eskom, independent power producers, energy sources, and regulatory developments, and profiles 31 companies in the industry.