Eskom CEO's Goals to Fix South Africa's Electricity Crisis

Boosting Eskom’s Energy Availability Factor (EAF), building gas and nuclear power capacity, and expanding South Africa’s transmission grid are key goals for Eskom CEO Dan Marokane, who started on 1 March 2024.

After over a year without a permanent CEO, Marokane's appointment comes with high expectations. He has been tasked with prioritizing the Generation Operational Recovery Plan in his first 100 days. His long-term goals include:

Increasing the EAF to 65%.
Adding 2,500MW of capacity at Medupi, Kusile, and Koeberg power stations.
Launching the National Transmission Company by July 2024.
Expanding transmission line construction from 300km to 800km annually.
Creating a separate distribution entity focused on network strengthening and new market products.
Addressing the renewable energy transition's impact on poor communities.

Marokane plans to collaborate with the South African Nuclear Energy Corporation for small-scale nuclear reactors and supports renewable energy and partnerships with private entities. He emphasizes improving employee morale, having engaged with a quarter of Eskom’s staff in his first 100 days. He acknowledges the challenges but is committed to ending load-shedding and restoring Eskom's reputation.

Eskom’s Load-Shedding Reduction

Eskom has achieved a significant reduction in load-shedding under CEO Dan Marokane’s leadership, marking the biggest break in load-shedding since 2020. This improvement is attributed to:

Improving Generating Fleet Health: Through the generation recovery plan, Eskom has enhanced the performance of its power plants.
Reduction in Electricity Demand: A notable decrease in electricity demand has also contributed to the reduction in load-shedding.

Key Performance Metrics

Energy Availability Factor (EAF): Eskom’s fleet has maintained an average weekly EAF of no less than 61.87% over the past seven weeks. This is a significant improvement compared to the same period in 2023, where the EAF ranged between 52.02% and 59.61%.
Unplanned Capacity Load Factor (UCLF): The UCLF, which measures the portion of the grid unavailable due to unplanned unit breakdowns, has ranged from 23.71% to 29.37%.

The graph below, provided by energy expert Chris Yelland, illustrates the improvement in UCLF from 2023 to 2024, highlighting the positive impact of the measures implemented by Eskom.

Eskom’s Big Load-Shedding Win

Under CEO Dan Marokane, Eskom has seen a significant reduction in load-shedding, the most notable improvement since 2020. This success is due to improvements in the generating fleet's health and a substantial drop in electricity demand.

Contributing Factors

Improved Generating Fleet Health:

Generation Recovery Plan: Eskom has enhanced power plant performance.
Energy Availability Factor (EAF): Achieved an average weekly EAF of at least 61.87% over the past seven weeks, up from 52.02% to 59.61% in the same period in 2023.
Unplanned Capacity Load Factor (UCLF): Reduced to a range of 23.71% to 29.37%.

Reduction in Electricity Demand:

Private Sector Investments: Increased self-generation by companies and individuals, especially rooftop solar power.
Lower Economic Activity: Decreased energy consumption due to reduced economic activity.

Key Metrics and Insights

Contracted Energy Demand: From 1 January to 16 June 2024, Eskom’s contracted energy demand was 99,201 GWh, around 4.88% lower than the same period in 2023.
“Behind-the-Meter” Solar Installations: Contributing 5,565 MW of peak power, these installations have reduced load-shedding during daylight hours by alleviating grid pressure.

Leadership and Staff Contributions

Marokane credits Eskom’s staff, leadership, and board, including head of generation Bheki Nxumalo, for these achievements:

“Eskom’s executives and employees have helped deliver these significant results to date, and we have a good base on which to build. We are putting the building blocks in place to rebuild trust and credibility in Eskom through transparent performance.”

While the performance is commendable, much of Eskom’s success in reducing load-shedding is due to the private sector’s investment in self-generation. This has helped lower overall demand on Eskom’s grid, enabling better management of emergency generation reserves like open-cycle gas turbines and pumped storage dam schemes.