Eskom
By Mpho Moloi
Eskom has announced R11.51 billion in diesel savings after 193 consecutive days without loadshedding. This achievement comes as a result of the power utility’s Generation Operational Recovery Plan, which has ensured uninterrupted power supply since 26 March 2024. This marks a turning point for the embattled utility company as it continues to recover from a long history of operational inefficiencies, financial woes, and an over-reliance on diesel to keep the lights on.
Eskom’s latest success story not only showcases improved operational efficiency but also signals a promising outlook for the country’s energy supply during the summer season. This strategic shift is an important step in reducing the utility’s fuel expenses while also contributing to greater energy availability, easing the burden on businesses and households that have been grappling with loadshedding for years.
Operational Efficiency: A Step Forward
Eskom’s Generation Operational Recovery Plan has managed to maintain the suspension of loadshedding for 191 consecutive days, achieving 191 days of uninterrupted power supply since March. This impressive streak has led to a drastic reduction in unplanned outages, with outages averaging 11 181MW over the past week, a significant improvement compared to the 14 743MW during the same period last year. This reduction of 3 562MW reflects a marked improvement in Eskom’s operational efficiency, in line with the utility’s summer expectations.
The improvement in operational efficiency is attributed to a number of factors, including an accelerated maintenance programme, close collaboration with original equipment manufacturers (OEMs), and the dedication of Eskom’s power station managers and their teams. Additionally, Eskom’s Energy Availability Factor (EAF) has improved significantly. Over the past week, the EAF averaged 61%, while the year-to-date average stands at 63.2%. These numbers reflect the success of Eskom’s efforts to stabilise its power generation system.
Key performing stations such as Kusile, Majuba, and Camden have consistently maintained an EAF above 70%, further contributing to the utility’s impressive performance. Notably, Duvha Power Station achieved an EAF of 81.9%, marking a significant milestone in Eskom’s recovery plan.
Energy Availability Factor (EAF) and Unplanned Outages
One of Eskom’s most important achievements is its year-on-year improvement in the Energy Availability Factor (EAF), which has risen to 63.2% from 55.3% during the same period in 2023. This 7.9% improvement is the result of a concerted effort to address the utility’s long-standing maintenance issues. By conducting timely repairs and implementing a rigorous maintenance programme, Eskom has been able to keep more power stations running at full capacity, reducing the need for unplanned outages.
The Unplanned Capacity Loss Factor (UCLF) remains at 25.4% for the financial year to date, a significant improvement from 34.14% in the corresponding period last year. This reduction in UCLF represents an 8.7% improvement compared to the same period last year. In practical terms, this means that fewer units are going offline unexpectedly, allowing Eskom to meet the country’s electricity demand more consistently.
Unplanned outages during the past seven days averaged 11 181MW, a stark contrast to the 14 743MW in the corresponding week last year. Today’s unplanned outages stood at 9 615MW, which is 3 385MW lower than the summer 2024 base case. These improvements signal Eskom’s commitment to reducing reliance on emergency power solutions and its ability to provide more stable energy output.
A Focus on Maintenance
Eskom’s ongoing planned maintenance programme is another key factor in the utility’s success. With 7 056MW currently undergoing maintenance, Eskom is aligning its efforts with a summer maintenance strategy aimed at continuous power plant reliability. This strategy is bolstered by short-term maintenance interventions designed to ensure uninterrupted power generation throughout the critical summer months when electricity demand typically rises.
This focus on maintenance is paying off, as evidenced by the increased availability of generation capacity and the reduction in unplanned outages. Eskom’s improved operational efficiency not only provides much-needed relief to businesses and households but also helps the utility save on costly diesel consumption used to power Open-Cycle Gas Turbines (OCGTs).
Diesel Savings and Reduced Expenditure
One of the most significant outcomes of Eskom’s improved operational performance is the massive reduction in diesel consumption, resulting in a year-on-year saving of R11.51 billion. Eskom’s expenditure on OCGTs between 1 April and 3 October 2024 increased to R5.92 billion, generating 883.0 GWh. This is approximately 66% less than the R17.43 billion spent during the same period last year, which generated 2 862.32GWh.
This sharp decrease in diesel consumption reflects Eskom’s success in reducing its reliance on costly fuel-based power generation. The OCGT load factor for 2024 stands at 5.79%, down from 18.78% in 2023. During September, the OCGT load factor was 13.06%, which is also lower than the previous year’s figure of 14.02%. This reduction highlights Eskom’s efforts to cut back on emergency power solutions and rely more on consistent electricity generation from its main power stations.
Furthermore, the OCGT load factor for 1 to 3 October 2024 was 3.65%, significantly lower than the 8.00% recorded during the same period last year. Diesel usage remains well below the year-to-date budget, signalling further financial savings for Eskom.
Looking Ahead: The Path to Stability
Eskom’s ability to suspend loadshedding for nearly seven months has provided much-needed stability to South Africa’s energy grid. As of today, Eskom’s available generation capacity stands at 30 725MW, with an evening peak forecast of 26 239MW for 4 October 2024. This generation capacity is expected to grow further, with approximately 4 430MW of additional generating capacity scheduled to return to service by 7 October 2024.
The utility’s outlook for the summer period (1 September 2024 to 31 March 2025) remains optimistic, with Eskom forecasting a loadshedding-free summer. Structural improvements to Eskom’s generation fleet and ongoing maintenance efforts are expected to provide continued stability to the energy grid. This outlook reflects Eskom’s commitment to maintaining the gains it has made over the past year, as well as its focus on reducing reliance on emergency power solutions.
Challenges Ahead: Illegal Connections and Network Tampering
Despite its progress, Eskom continues to face challenges in certain local areas where illegal connections, vandalism, and network tampering remain significant issues. The “Save Your Transformers, Save Lives” campaign, launched by Eskom, aims to raise awareness about the dangers of these illegal activities, which can lead to overloaded networks and localised power outages.
Eskom urges customers to avoid purchasing electricity from unlicensed vendors and to report any illegal activities to the Eskom Crime Line. The utility remains committed to maintaining the integrity of the power network and ensuring reliable electricity supply to all South Africans.
Conclusion: A Promising Future for South Africa’s Energy Supply
Eskom’s achievement of R11.51 billion in diesel savings, coupled with 191 days of uninterrupted power supply, marks a turning point for the utility. As Eskom continues to stabilise its operations and improve the efficiency of its power stations, South Africa’s energy future looks brighter. The utility’s focus on maintenance, reduction in unplanned outages, and significant diesel savings are key factors in ensuring that loadshedding becomes a thing of the past.
While challenges remain, particularly with regards to illegal connections and vandalism, Eskom’s progress thus far provides hope that the utility is on the right path. With a continued emphasis on maintenance, collaboration with OEMs, and operational efficiency, Eskom is well-positioned to deliver reliable energy to the nation and secure a loadshedding-free future for all South Africans.
Eskom has pledged to provide updates on its progress and will issue its next major announcement on 11 October 2024, or sooner if significant changes occur.
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