SA's Electricity Minister Voices Worries Over Tight Supply -

South Africa remains at risk of power outages caused by unforeseen failures at current facilities and setbacks in activating new power plants, as stated by the country’s electricity minister.

“At this moment, the electrical system is under considerable strain,” Kgosientsho Ramokgopa revealed to reporters during a conference in Cape Town on Tuesday. He admitted that ensuring a reliable power supply is a concern that “keeps me awake at night.”

Read: South Africa’s only nuclear power plant is offline due to unit trip

Africa’s largest economy has faced years of rolling blackouts, with state utility Eskom—responsible for over 80% of the country’s electricity—struggling to meet increasing demand. The frequent outages, locally termed load shedding, reached unprecedented levels in 2023 but were temporarily halted in March of the previous year; Eskom attributed this respite to improved maintenance and the delay of the planned retirement of certain aging plants until new capacity is ready.

However, this year has seen sporadic power cuts as several units have broken down, and the reliability of plants operating beyond their intended decommissioning dates continues to be a significant concern. Recently, one of the two reactors at the Koeberg nuclear facility, once regarded as Eskom’s most reliable plant, experienced a trip, highlighting the system’s fragility.

Read: Eskom’s ‘calculated aggression’ with scheduled maintenance carries risks

Eskim initiated Stage 6 power cuts on February 23, which reduced generation capacity by 6,000 megawatts to prevent a complete blackout.

The resurgence of blackouts “raises alarms about possible systemic weaknesses,” remarked Jason Lightfoot, a portfolio manager at Futuregrowth Asset Management in Cape Town. “Additionally, with winter approaching and anticipated demand increasing, we must consider the implications of this instability and the risk of further load shedding.”

Over the next decade, Eskom intends to decommission coal-fired plants with a combined generation capacity of at least 15 gigawatts and has been preparing to enhance some of that output since early last year. In response to inquiries, the utility confirmed that initiatives aimed at generating up to 2,000 megawatts of renewable energy “are either currently in development or planned for implementation within the next three years.”

Eskom Chief Executive Officer Dan Marokane presented expansion plans to lawmakers in December, which involved “aspirational and unfunded” projects as well as planned utilization of gas, nuclear, and hydro technologies.

An increase in private generation has helped to mitigate South Africa’s electricity deficit, with a record 501 new facilities, totaling 4,178 megawatts of capacity, registered last year, according to the National Energy Regulator of South Africa.

Government efforts to secure power from large-scale projects have encountered several delays. The deadline for submissions for the initial bid window to supply 2,000 megawatts of gas-fired power was postponed by seven months to resolve various issues faced by bidders, as highlighted in a recent announcement from the Department of Mineral Resources and Energy.

Read: Stage 6 load shedding affects South Africa

Remaining energy challenges still need to be tackled. One includes securing financing to upgrade 14,000 kilometers (8,700 miles) of transmission lines — a goal Ramokgopa hopes to achieve by year’s end. Another critical issue is to ensure that South Africa does not experience a “gas cliff” when pipeline deliveries from Mozambique run out—another scenario that concerns the minister.

Read: Eskom’s new solar regulations – Here’s what you need to know

The government is collaborating with Eskom and chemical manufacturer Sasol Ltd. to procure liquefied natural gas from Qatar, although importing this fuel may “impact pricing,” according to Ramokgopa.

Follow Moneyweb’s comprehensive finance and business news on WhatsApp here.