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Report states S-Africa lost USD155 billion in order to power outage predicament in 2023
(MENAFN) South Africa's Economy suffered an estimated R2.8 trillion ($155 billion) loss in 2023 due to severe rotational load shedding, marking the worst year of power outages in the country’s history. However, the situation improved significantly in 2024, with more than 300 consecutive days without power cuts between April and December.
These findings were detailed in a report released on Monday by the Council for Scientific and Industrial Research (CSIR), which analyzed utility-scale power generation data from January to December 2024.
The report highlighted that the national average electricity price surged by 12.74% this year, reaching approximately 195 c/kWh—well above the cost of renewable energy sources such as solar photovoltaic (PV) and wind, which range between 50 and 60 c/kWh. This means electricity prices now exceed the levelized cost of renewable energy generation, which is between R0.5 and R0.6 per kWh under the Renewable Energy Independent Power Producer Procurement (REIPPP) program.
Speaking at a media briefing, CSIR Energy Centre head Dr. Thabo Hlalele pointed out that over the past decade, electricity tariffs have risen by an average of 11% annually—significantly higher than the country’s average inflation rate of around 5%. The National Energy Regulator of South Africa (Nersa) has proposed a 12.74% tariff increase for 2024, exceeding the expected inflation rate of 4.4%.
The study also compared Eskom’s various power generation sources—including coal, nuclear, hydro, pumped storage, gas turbines, and renewables—alongside their installed capacities and energy output to assess their impact on load shedding.
Private sector investment in embedded solar PV generation played a role in minimizing power cuts, the report noted. In the first three months of 2024, South Africa’s 5.8GW of embedded solar PV capacity generated approximately 2.3TWh of electricity, helping to stabilize the grid during periods of strain.
Hlalele emphasized that rooftop solar and other embedded generation projects are contributing to the country’s energy security. However, while these initiatives are reducing dependence on Eskom, their full impact remains difficult to quantify.
These findings were detailed in a report released on Monday by the Council for Scientific and Industrial Research (CSIR), which analyzed utility-scale power generation data from January to December 2024.
The report highlighted that the national average electricity price surged by 12.74% this year, reaching approximately 195 c/kWh—well above the cost of renewable energy sources such as solar photovoltaic (PV) and wind, which range between 50 and 60 c/kWh. This means electricity prices now exceed the levelized cost of renewable energy generation, which is between R0.5 and R0.6 per kWh under the Renewable Energy Independent Power Producer Procurement (REIPPP) program.
Speaking at a media briefing, CSIR Energy Centre head Dr. Thabo Hlalele pointed out that over the past decade, electricity tariffs have risen by an average of 11% annually—significantly higher than the country’s average inflation rate of around 5%. The National Energy Regulator of South Africa (Nersa) has proposed a 12.74% tariff increase for 2024, exceeding the expected inflation rate of 4.4%.
The study also compared Eskom’s various power generation sources—including coal, nuclear, hydro, pumped storage, gas turbines, and renewables—alongside their installed capacities and energy output to assess their impact on load shedding.
Private sector investment in embedded solar PV generation played a role in minimizing power cuts, the report noted. In the first three months of 2024, South Africa’s 5.8GW of embedded solar PV capacity generated approximately 2.3TWh of electricity, helping to stabilize the grid during periods of strain.
Hlalele emphasized that rooftop solar and other embedded generation projects are contributing to the country’s energy security. However, while these initiatives are reducing dependence on Eskom, their full impact remains difficult to quantify.
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