Generation of Electricity in South Africa 2018

The Generation of Electricity: State-owned entity Eskom, responsible for 90% of the country’s power generation, remains financially and operationally fragile and continues to struggle with declining electricity sales, looming coal shortages, financial instability, and corruption and mismanagement. Eskom, which operates 30 power stations with a total nominal capacity of 45,561MW, reported a loss of R4.6bn in the 2017/2018 financial year and more than R19bn in irregular expenditure has been identified. Sales revenue declined by 2% to R95.5bn, net cash generated from operations decreased by 30% to R22bn, net finance costs increased by 53% to R10bn, and net profit after tax declined by 34% to R6.3bn. Eskom’s interest payments amount to R215bn and debt repayments to R228bn over the next five years.;

Progress In Renewable Energy: The electricity generation and distribution landscape in South Africa is changing and the draft Integrated Resource Plan makes it clear that renewable energy will be the focus in the next decade. The stalled programme to award new contracts to Independent Power Producers has recommenced as part of government’s plan to bring online 17,800MW from renewable sources by 2030 in order to lessen South Africa’s reliance on coal and help reduce the country’s carbon emissions. ;

Report Coverage: The report on the electricity sector examines current conditions and describes the developments in the generation of electricity in South Africa. Profiles for 13 companies are provided, ranging from Eskom to renewable energy producers such as Coria Investments, which trades as the Noblesfontein Wind Farm and the Hopefield Wind Farm Local Community Company.