South Africa is currently facing an electricity crisis due to a number of factors, including an ageing and inadequately maintained fleet of coal power stations, delays in upgrading nuclear power stations, and significant failures at recently built coal power stations. This has resulted in unprecedented loadshedding, with electricity interruptions totalling 3,775 hours over 205 days in 2021. The crisis has had a devastating effect on the economy, with businesses closing, jobs being lost, and critical services such as healthcare and education being affected.
Eskom, the state-owned power utility, has been struggling with frequent breakdowns of many of its aging coal-fired power stations. The government is looking to add additional electricity capacity through emergency procurement of renewable energy sources like wind and solar, but this is unlikely to happen in the short term.
President Cyril Ramaphosa declared a national state of disaster in response to the electricity crisis on 9 February 2023, during his State of the Nation Address. He also appointed Dr Kgosientsho Ramokgopa as Minister of Electricity in the Presidency, who would focus full-time on working with Eskom to end loadshedding.
The president said that the declaration would enable the government to implement practical measures to support businesses, especially those in food production and retail supply chains. He also said that it would allow the government to exempt critical infrastructure such as hospitals and water treatment plants from loadshedding. He added that it would allow the government to remove red tape for energy projects and so build them faster.
However, some analysts and civil rights groups have questioned the effectiveness and rationality of the declaration, saying that it is unclear what the government actually plans to do and that it may enable corruption and abuse of public funds. They have also argued that the electricity crisis can be managed using existing laws and regulations, and that Eskom’s problems require more than just financial relief.
On 5 April 2023, the government revoked the national state of disaster, saying that it would now work to reduce the impact of power cuts using existing legislation and contingency arrangements. The deputy minister of cooperative governance, Parks Tau, said that since the establishment of the ministry of electricity, there had been discussions about whether the state of disaster was still necessary. However, some crisis measures would remain in place, according to the electricity minister.
Eskom’s current debt as of December 2022 was R396.3 billion, down from R401.8 billion in 2021. However, this debt is still unsustainable and poses a major risk to the country’s finances and electricity supply. The government has announced plans to take over R254 billion of Eskom’s debt over the next three years, with strict conditions to safeguard public money. This would help to strengthen Eskom’s balance sheet and enable it to restructure and invest in its infrastructure and maintenance. However, some analysts have questioned the effectiveness and feasibility of this plan, saying that it may not address Eskom’s underlying operational and governance challenges.
The power shortage has escalated in recent months, with South Africans facing electricity cuts for up to 15 hours a day. To prevent a total grid collapse, Eskom cuts power to different parts of the country at a time. This is referred to locally as “load shedding”. There are eight stages of load shedding – each stage means 1,000 megawatt hours must be cut. Many residents have to go up to six hours a day without power.
The electricity crisis has also had an impact on the rest of the continent, as South Africa is a major exporter of electricity to neighbouring countries such as Botswana, Lesotho, Namibia, Swaziland and Zimbabwe. These countries rely on South Africa for their power supply, and have also experienced blackouts and increased tariffs as a result of Eskom’s problems.
Some experts have suggested that South Africa should invest more in solar farms and battery storage at scale, and end its state monopoly on electricity generation and distribution. They have argued that this would increase competition, efficiency and reliability in the energy sector, and reduce dependence on coal. They have also said that this would create more jobs and opportunities for local communities and entrepreneurs.
However, others have cautioned that this would require significant capital investment and policy reforms, which may not be feasible or desirable in the current political and economic climate. They have also warned that solar power is intermittent and dependent on weather conditions, which may pose challenges for grid stability and security.
The electricity crisis in South Africa is likely to persist for some time, unless there is a radical change in the way the country produces and consumes energy. The crisis has exposed the vulnerabilities and inefficiencies of South Africa’s energy system, as well as its implications for the region and the environment. It has also highlighted the need for more innovation and collaboration among stakeholders to find sustainable solutions for the future.
