Eskom
By Karabo Marifi
Eskom announced on Friday, 1 November 2024, that it has successfully suspended loadshedding for over seven months, marking a significant milestone in stabilising South Africa’s power supply. Since 26 March 2024, the power utility has maintained uninterrupted electricity provision for 219 consecutive days, achieving a year-on-year diesel cost saving of R13.7 billion. This accomplishment follows extensive investments in the Generation Recovery Plan, aimed at enhancing operational efficiency and ensuring a reliable power supply across the nation.
In this article, we examine the strategies that led to Eskom’s achievements, the significance of the diesel savings, and the broader implications for South Africa’s energy landscape.
Eskom’s Generation Recovery Plan: Key to Loadshedding Suspension
The suspension of loadshedding can be attributed to Eskom’s Generation Recovery Plan, a comprehensive strategy designed to improve operational performance and reduce unplanned outages. The plan focuses on enhancing the Energy Availability Factor (EAF) by addressing the root causes of outages and improving maintenance protocols across the power generation fleet. According to Eskom, these efforts are part of a broader commitment to achieving a 70% EAF by the end of March 2025.
A recent milestone was achieved on 28 October 2024, when Eskom reported an Unplanned Capacity Loss Factor (UCLF) of 7,299 MW. This figure, the lowest in four years, represents a substantial improvement in Eskom’s operational efficiency. The achievement follows the utility’s earlier milestone on 19 October, when it marked 206 days of uninterrupted power supply, the longest stretch in five years.
Financial Impact: R13.7 Billion Diesel Savings
The financial implications of Eskom’s improved efficiency are considerable. With the reduction in unplanned outages, Eskom has managed to save R13.7 billion in diesel costs year-on-year. This saving results from a decrease in reliance on diesel-powered Open-Cycle Gas Turbines (OCGTs), which are typically used as a backup during peak demand periods. Eskom’s strategic use of peaking stations and alternative energy sources has significantly reduced the need for costly diesel consumption.
Between 1 April and 31 October 2024, Eskom spent R6.21 billion on OCGTs, generating approximately 947.34 GWh of electricity. This expenditure represents a 68.8% decrease compared to the R19.91 billion spent over the same period last year, highlighting the cost-effectiveness of the Generation Recovery Plan.
Reduced Unplanned Outages: Enhanced Stability and Reliability
One of the main objectives of Eskom’s Generation Recovery Plan is to reduce unplanned outages, which are a significant contributor to loadshedding. By addressing the UCLF and Other Capacity Loss Factors (OCLF), Eskom has improved the availability of generation capacity to meet the country’s electricity demand. The average total unplanned outages over the past week were recorded at 10,284 MW, which is 2,716 MW lower than the summer base case for 2024, indicating enhanced operational efficiency.
Additionally, Eskom’s EAF increased to an average of 65% over the past week and 63.1% year-to-date. Several top-performing stations, including Grootvlei, Camden, Medupi, Lethabo, and peaking facilities, achieved EAFs above 70%. This improvement reflects Eskom’s efforts to increase the reliability and stability of its generation fleet.
Planned Maintenance: Preparing for Future Energy Demand
Eskom’s ongoing maintenance activities are integral to sustaining operational performance. Currently, planned maintenance is at 6,094 MW, aligning with Eskom’s strategy to prepare its stations for increased demand during the winter season of 2025. By conducting regular maintenance, Eskom aims to further reduce unplanned outages and enhance the long-term reliability of its infrastructure.
The summer maintenance strategy is part of Eskom’s proactive approach to addressing potential challenges in energy provision. In August, Eskom released its Summer Outlook, forecasting a likely loadshedding-free summer due to structural improvements in generation. This outlook remains unchanged, with Eskom on track to meet its electricity supply commitments.
Impact on Energy Availability Factor (EAF)
The EAF is a critical metric that reflects the operational health of Eskom’s power stations. The year-to-date EAF as of 31 October 2024 stands at 63.1%, a marked improvement of 7.5% compared to the same period in 2023, which recorded an EAF of 55.6%. The weekly EAF rose from 57.0% at the start of the financial year to 66.4% at the end of October, representing a 9.4% improvement.
This sustained improvement in EAF is primarily due to a reduction in UCLF and OCLF, highlighting Eskom’s success in addressing unplanned outages and improving the performance of its generation units.
Strategic Use of Open-Cycle Gas Turbines (OCGTs)
Eskom’s strategy includes the strategic use of OCGTs and pumped storage to manage peak electricity demand, particularly during evening peaks (17:00 to 22:00). By utilising OCGTs more efficiently, Eskom has reduced operational costs and diesel usage. The OCGT load factor for the financial year-to-date (1 April to 31 October 2024) is 5.4%, a decrease from last year’s figure of 18.83%.
For October, the OCGT load factor was recorded at 2.67%, significantly lower than the 14.22% in October 2023. This reduction has helped keep diesel usage below budget, further contributing to Eskom’s financial savings.
Community Engagement: “Save Your Transformers, Save Lives” Campaign
While loadshedding remains suspended, Eskom continues to address localised network challenges due to illegal connections, vandalism, meter tampering, and unauthorised operations. These issues increase the risk of network overloading, leading to unplanned power outages in certain areas. To address these challenges, Eskom has launched the “Save Your Transformers, Save Lives” campaign, urging communities to avoid illegal activities and purchase electricity only from authorised vendors.
The campaign aims to protect the integrity of the power network and enhance public safety. Eskom encourages citizens to report illegal activities to the Eskom Crime Line or via WhatsApp, reinforcing its commitment to community engagement and safeguarding the power infrastructure.
Prepaid Meter Update Reminder
With 24 November 2024 approaching, Eskom reminds customers to update their prepaid meters to avoid expiration and potential loss of electricity. The update is a simple DIY process that involves purchasing credit tokens from authorised vendors and entering two 20-digit codes into the meters. Eskom’s proactive approach in educating customers about the update process reflects its commitment to uninterrupted service and customer support.
Looking Ahead: Eskom’s Future Goals
Eskom’s achievements in stabilising the power supply, reducing diesel expenditure, and improving operational efficiency mark a turning point in South Africa’s energy landscape. As Eskom continues to execute its Generation Recovery Plan, the utility remains focused on achieving a 70% EAF by March 2025, a goal that promises to further reduce the likelihood of loadshedding.
The strategic investments and improvements implemented by Eskom are setting a foundation for a more resilient and sustainable energy sector. With consistent progress, Eskom aims to provide a reliable power supply to South Africa, supporting economic growth and improving the quality of life for citizens.
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